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How much is auto insurance for a 16-year-old? Are rates higher for young drivers?
If you’re a parent of a teen driver, this is an important question for you to answer, because driving without insurance could cost you significantly more than the often high insurance rates for teen drivers.
Sixteen-year-olds have an advantage over their older teenage counterparts in that auto insurance companies assume they are still full-time high school students who are not driving all that frequently.
Additionally, auto insurance discounts are often available for good students or students enrolled in defensive driving courses. Although it might be difficult to find cheap auto insurance rates for 16-year-old drivers, discounts can help bring down those rates.
Read this article to learn more about the average auto insurance costs for a 16-year-old, average auto insurance costs for 16-year-old females, average insurance rates for 16-year-old males, and more.
To get the best rates, parents should shop around. Enter your ZIP code in our free tool to compare auto insurance rates for a 16-year-olds from multiple companies. Which auto insurance company for a 16-year-old is best for you? Find out now.
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It’s natural for parents to worry that they won’t be able to afford auto insurance when their teen finally does get their license.
Since auto insurance companies consider teenagers to be a different driver type than the average driver, teenage auto insurance costs are higher on average.
Fortunately, there is affordable auto insurance for 16-year-olds available if you know what to look for.
While it’s true that auto insurance for a 16-year-old female driver, for example, will be a little more for expensive than their parents, it’s still manageable under most circumstances, though different factors will affect those rates.
What if my 16-year-old drives a Corvette or a Camaro or a Porsche? Will that increase the cost of 16-year-old auto insurance rates? Short answer: YES. What about auto insurance for a 16-year-old boy versus a girl of the same age?
Keep reading to learn more about auto insurance for 16-year-old males and females.
This table summarizes how much you may pay when adding a teen driver to your insurance policy.
|States||Average Annual Rates for Adult Only||Average Annual Rates with a Teen Added||Percent Rate Increase|
As you can see, the average cost of adding a 16-year-old driver to your auto insurance policy can vary dramatically by state, but in nearly every case, rates more than double when adding a teen driver.
Read on to learn more about why auto insurance is so expensive for teen drivers, the difference in rates based on gender, and more.
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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How much should insurance cost for a 16-year-old female? How much is auto insurance for a 16-year-old boy? How do I find the cheapest auto insurance for 16-year-old?
Take a look at the following rate data in which we note the 10 cheapest states for teen drivers (the data focuses on 17-year-old drivers since we don’t have data for 16-year-olds specifically):
|States||Average Annual Rates||Cheapest Company for 17-Year-Old Males||Cheapest Company's Average Annual Rates for 17-Year-Old Males||Cheapest Company for 17-Year-Old Females||Cheapest Company's Average Annual Rates for 17-Year-Old Females|
|Hawaii||$2,696.83||State Farm||$1,040.28||State Farm||$1,040.28|
|North Carolina||$5,371.26||Liberty Mutual||$3,197.53||Liberty Mutual||$3,197.53|
|Wyoming||$5,828.93||Liberty Mutual||$4,046.51||Liberty Mutual||$3,605.13|
|Massachusetts||$6,016.14||State Farm||$2,583.99||State Farm||$2,583.99|
|Montana||$6,092.26||Liberty Mutual||$2,064.28||Liberty Mutual||$2,064.28|
|Wisconsin||$6,206.76||American Family||$3,134.61||American Family||$2,844.04|
It’s interesting to note that countrywide, the company with the most affordable auto insurance rates for 16-year-old drivers is Nationwide.
Better driving records and other factors can affect rates. For example, according to some research, the average annual rate is around $1,000 for a teen driver who meets the following criteria:
That number obviously goes up if she has her own car or has a history of accidents or violations. For a male counterpart, the average number can be even higher.
Keep in mind that these ballpark figures apply to 16-year-old high school students still living at home.
When the child turns 18 their rates will most likely go up because they’re prone to do more driving at that time.
Of course, as soon as they move out on their own, teens will be paying the full rate as applied to any independent auto insurance policy.
In order to get the lowest auto insurance rates for your teenager, it’s best to keep them on your policy as long as possible (though this will, of course, increase your rates).
For example, 16-year-old boys can see up to a 50 percent reduction in rates just by being insured under their parents’ insurance policy, rather than on their own. Take a look at this table to see average savings by state.
|States||Average Annual Rate for a 16-Year-Old Driver Insured Alone||Average Annual Rate for a 16-Year-Old Driver on a Family Insurance Plan||Average Savings for a 16-Year-Old Driver on a Family Plan (%)|
As you can see, when you factor in average rates for both male and female 16-year-old drivers, the savings are even greater on a family insurance plan.
In most states, you can keep your children on a family insurance plan through age 21, provided that they are in college and still count your home as their primary residence.
There are a few states that are more generous, allowing parents to keep kids on their policy until age 26.
There are many different factors that affect auto insurance rates, and age is a big one.
Keep reading to learn how age and vehicle will affect auto insurance rates.
There are several reasons why auto insurance for teenagers is higher than that of their parents.
The first, and most obvious, is the fact that teenagers simply lack experience behind the wheel.
Where their parents have logged many hours of driving, a 16-year-old will usually have driven fewer than 100 hours by the time they take their road test.
100 hours seems like a long time for some activities, but for driving, it’s not even a drop in the bucket.
Another reason for higher auto insurance rates among teenagers is the assumption that they are more careless behind the wheel.
Whether or not you believe this is a justified stereotype, the Center for Disease Control (CDC) reports that in 2017, an average of six teenagers (between 16 and 19) died as the result of motor vehicle crashes every day.
And when looking at all motor vehicle accidents (both those that resulted in fatalities and those that did not), drivers between the ages of 15 and 19 accounted for about 8 percent of the total cost of injuries resulting from an accident.
But these teen drivers only represent about 6.5 percent of the population in the U.S., thus proving they are more dangerous drivers than the general population.
Government statistics consistently show that of all car accidents on U.S. highways each year, over two-thirds are caused by teen drivers.
Such a high number clearly indicates that teenage drivers are riskier to cover.
Twenty years ago this question may have been irrelevant because most teenagers drove their parents’ cars.
In today’s culture, though, it’s becoming more and more common for parents to buy their children separate cars so the kids aren’t tying up theirs.
Keep in mind that the make and model of your child’s car impact the cost of insurance.
If you buy your 16-year-old a brand-new sports car, you’ll probably be paying significantly more in insurance than you would on a 20-year-old family sedan or similar vehicle.
Along with the actual value of the car, you also need to consider the safety record. For example, vehicles with off-road capability are automatically considered more dangerous.
Putting your 16-year-old driver behind the wheel of one of these vehicles is a virtual guarantee you’ll pay more for auto insurance than you really need to. If you’re buying your child a vehicle, try looking for the safest ones on the market.
Finally, consider the value of your own vehicles if you plan on your teenager driving one of them. You and your spouse will be the primary drivers of your respective vehicles, but when adding your teen to the policy, you should assign them to the one with the least value.
Just like with an adult’s auto insurance policy, there are multiple ways to save on auto insurance for a 16-year-old. Keep reading to learn some tips on saving money on auto insurance.
One way to find low-cost auto insurance for 16-year-old drivers is with discounts. We’ve summarized a few of the available auto insurance discounts your teen may qualify for in this table. Take a look.
|Insurance Companies||Distant Student Discount Offered||Driver's Ed Discount Offered||Good Student Discount Offered|
As you can see, most of the major companies offer some kind of discount for teen drivers, which can help you manage costs when you add a teen driver to your policy.
In addition to discounts, there are some other ways to save money on auto insurance for teens. Some of them are:
When your teen begins the process of getting a driver’s license, start looking around for auto insurance. Each company will charge a different rate, so compare quotes from multiple companies to get the best deal.
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Once your teen is licensed, they will need insurance in order to drive any vehicle you already own or choose to purchase for them.
Rates for 16-year-old drivers can be quite expensive, though shopping for the best rates and finding available discounts (good student, for example) are two ways to manage the high costs.
If your teen driver is a 16-year-old boy, you’ll find that the insurance rates you’ll pay will be an average of 17 percent higher than rates for 16-year-old girls.
Another way to save is to add your teen to your family auto insurance policy, rather than to insure them separately. This can save 50 percent or more on rates.
Are you ready to buy auto insurance for a 16-year-old? For the best auto insurance for 16-year-old, compare auto insurance quotes for a 16-year-old right now by entering your ZIP code in our free tool.
Still have questions about the cost of auto insurance for your teen driver? Read these frequently asked questions for more information.
Are teen drivers required to have auto insurance?
In general, the answer is yes because any driver on the road is typically required to be insured with at least the minimum coverage amount required by the state in which they reside.
However, you can check your local laws to find out for sure (often, teens still learning to drive aren’t technically required to be insured).
Regardless of what your state laws are, it’s still a good idea to insure your teen drivers, especially if they plan to get behind the wheel of one of your vehicles.
As we noted above, at a minimum, you’ll need to make sure your teen has the legally required liability coverage in your state.
But you can also choose to add comprehensive and collision coverage, though this will increase the cost of insurance.
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