How Much Is Car Insurance For A 16 Year Old?

Matthew Lloyd
January 27, 2021
Matthew Lloyd

How Much Is Car Insurance For A 16 Year Old?

For teenagers, turning 16 years old is one most exciting times of their life, but that's not the same case for their parents. At 16, teenagers can enroll in driving education and get licensed to drive, meaning parents may share the family car and include them in their car insurance policy.

Finding the right car insurance for a 16-year-old can be overwhelming. First, parents have to think about the cost, which usually varies from one insurer to another. Secondly, 16–year-olds are the riskiest group of drivers to insure since they have no driving history and are still learning how to drive safely in different situations. As such, their auto insurance can be very expensive.

To understand better how much is car insurance for 16-year-old drivers, continue reading below.

Cost of car insurance policy for 16-year-olds

It’s quite normal for parents to worry about not being able to afford a car insurance policy for their teen once they get their license. 

Teenage car insurance average costs are always higher since auto insurance companies usually categorize teenagers as a different group of drivers from the average drivers.

The average auto insurance for a 16-year-old driver in the USA with their own insurance policy is about $2,593 per year, assuming they have a state minimum coverage.

If the teenager buys the recommended liability coverage of 50/100/50, the premium will rise to $2,957. Full-coverage car insurance for a 16-year-old driver is more expensive; teens can end up paying between $6,930 and $7000 annually.

Car Insurance Costs for 16-Year-Old Males vs. 16-Year-Old Females

Generally, insurance for 16-year-olds is expensive, regardless of gender. Both girls and boys who have received their license for the first time can expect to pay an average of $5944 every six months.

However, the premiums for males are often more than that of their female counterparts. Since insurers view male teenagers as being fast drives and more aggressive on the road. As a result, they are more likely to get into an accident or get a speeding ticket.

16-year-old boys can pay an average of $7,483 for their own auto insurance. Teenage girls at the age of 16 pay an average of $6,562 for their insurance, that's if they have their own policy that consists of a comprehensive and collision coverage, featuring liability limits of 100/300/ 100. From these numbers, you can see 16-year-old girls pay $920 less than boys. 

The annual auto insurance rate can increase significantly if a teenager gets into an accident or receives a ticket for the violation of traffic rules. Since teenage insurance rates are already expensive, it’s wise to maintain a good driving history and overall driving habits.

Adding Your 16-Year-Old Teenager to Your Policy

Insurance companies offer lower premiums for new young drivers when parents add them to their existing policy. Car insurance premiums can be up to 50% lower for 16-year-old male drivers who’re protected by their parent’s policy as compared to getting their own car insurance.

When parents factor in the average rates of 16-year-old drivers, they can save even more on a family insurance policy. Most states in the USA allow parents to keep their children under a family insurance policy until the age of 21. But other states have raised this limit to 26.

Additionally, a few states allow parents to keep their children on their policy until 26, provided that they’re still in college.

What Factors Influence the Cost of Car Insurance for a 16-Year-Old?

how much is car insurance for a 16 year old

Let’s expand on this factor a little more.

Teenage auto insurance is higher when compared to that of parents because insurers believe teenagers lack the experience behind the wheel. Whereas a parent has potentially logged thousands of driving hours, 16-years old drivers only have less than 100 driving hours by the time they take to their road test.

Another reason for the higher teenage car insurance cost is the assumption that they’re usually careless behind the wheel. According to the reports by the CDC (Centers for Disease Control), about six teenagers (between the age of 16 and 19) die from motor vehicle-related accidents every day.

And if that’s not enough, statistics from the government consistently indicate that two-thirds of the car accidents on U.S. highways are caused by teen drivers. These high numbers indicate that teenage drivers are riskier to cover.

Other factors include

  • Type of car
  • Location
  • Previous insurance history
  • Gender
  • Marital status
  • Credit score

Many 16-years-old are not married, haven’t started building credit, and don’t have a home. As a result, insurers have no data points to assess the 16-year-old driver’s risk. Instead, they have to focus on the age, gender, and driving experience of the teen.

Car insurance for 16-year-old: State minimum coverage

Every state in the U.S has a minimum auto insurance requirement that a teenager must meet to drive legally. State minimum coverage is cheap, but it only provides limited protection. So if a 16-year-old buys the required coverage, it means the insurer will only cover other people's injuries and car damage, but not the teenager’s injuries or car repairs.

Car insurance discounts for 16-year-olds

Although the cost for a 16-year-old’s car insurance policy is high, there are several ways to reduce the cost. One of the most effective ways is securing car insurance discounts. These discounts usually vary depending on state and insurer. Car insurance discounts include:

  • Good scores: Teen drivers who attain and maintain a 3.0 or “B” average in their grades may receive a 15% discount on their car insurance.
  • Driver education: If a 16-year–old completes a driver's education course, which is not a mandatory part of the licensing process, the insurer may offer them a 5% discount.
  • Parent-teen driving contract: A teenager can sign a contract with their parent that contains the rules to follow when driving. The rules can include the number of passengers to carry, limited driving hours, and more. This can result in a 5% discount.
  • Pay in full: Some insurance companies will give their clients discounts when they pay in full, instead of paying in monthly installments.
  • Driving tracker: Most insurance companies provide their clients with a telematics driving tracker, which reduces insurance rates after a client demonstrates that they drive safely.

Ways 16-year-old drivers can save on their car insurance cost

Keeping a clean driving record

One of the best ways for 16-year-old drivers to offset the cost of their insurance is to maintain a clean driving record. Since insurers already assume teens are inexperienced, violating traffic rules and getting involved in accidents will only worsen their perspective.

Accidents, careless driving, speeding, and distracted driving can cause an increase in car insurance costs. Parents should teach their children how to drive responsibly so they can reduce the rates and keep the teenager safe.

Giving claim filling a second thought

Before filing a claim, parents and teens should check how much their insurance rate will increase, especially for an at-fault accident. Sometimes avoiding filling claims can help to cut down car insurance rates.

Other ways

  • Taking a defensive driving course
  • Carrying only the basic liability insurance need by the state
  • Keeping deductibles high to lower insurance rates
  • Buying a car that’s cheaper to insure

How to get car insurance for a 16-year-old?

Adding a 16-year–old to a parent auto insurance policy is as simple as calling an insurance agent or going to the parent’s insurance company website. 

However, a parent should take this opportunity to check out other insuring companies and see the rates they offer. If they’re lower, then a parent should consider switching insurers to save more money.

It’s no secret, adding a 16-year-old to a family insurance policy will most likely cause a significant increase in the insurance rates, but keep in mind that not all insurers will increase the cost the same way.

Even though teens can compare quotes, sign up for insurance, and buy it on their own, they still need a parent to cosign or approve the agreement since minors can't sign legally binding contracts.

Bottom Line

16-year-old teens with driving licenses must have auto insurance before they can drive their parents or their cars.

The cost of insurance for 16-year-old drivers can be very high, so it’s wise to shop around to find the best rates and discounts to reduce the high costs.

Although teenage auto insurance is expensive, 16-year-old males tend to pay more insurance rates than 16-year-old females.

By adding a teenager to the family auto insurance policy, a parent can save up to 50% or more on insurance rates.

Are you’re ready to purchase car insurance for a 16-year-old driver? Visit our marketplace and compare the best auto insurance quotes for 16-year-olds today.