Best Car Insurance for 16-Year-Olds

Becoming a licensed driver is exciting, but it also comes with expenses. One of the biggest expenses for 16-year-old drivers or their families is car insurance.
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Best Car Insurance for 16-Year-Olds

Written by Brian Greenberg
CEO / Founder & Licensed Insurance Agent

Last updated: November 24th, 2022

Reviewed by Paige Geisler
Licensed Insurance Agent

It’s no secret that car insurance for teenagers can be pricy, so learn about the best auto insurance for 16-year-olds below to see if you can save money.

What is the Best Auto Insurance for 16-Year-Olds?

For most 16-year-olds, the best auto insurance is the one that’s right for their parents or guardians. That’s because teens typically must be added to their parent’s policy or parents must purchase an individual policy for their teen. Minors usually can’t get a car insurance policy—or even register a vehicle—in their names. In most cases, you must be the age of majority in your state to do these things. That’s 18 years old in most states.

How Much is Car Insurance for 16-Year-Olds?

On average, 16-year-olds pay around $480 to $520 per month for full coverage car insurance. The average cost of a policy that only includes liability coverage is around $200 for drivers this age.

What Impacts the Cost of Auto Insurance for 16-Year-Old Drivers?

Factors that can impact the cost of coverage for 16-year-old drivers include:

  • Policy type: Full coverage policies cost more than liability-only policies.
  • Amount of coverage: The more liability insurance coverage you buy, the higher the premiums usually are.
  • Deductible amounts: Choosing lower deductibles can increase premium costs.
  • Type of vehicle: Some models and types of vehicles are more expensive to insure than others. For example, vehicles with larger, more powerful engines typically cost more to insure.
  • Value of the vehicle: Vehicles that have higher values tend to be more expensive to insure than vehicles with lower values.
  • Gender of the driver: Teen males are typically more expensive to insure than teen females.
  • Where you live: Car insurance prices vary widely by state. Delaware, Louisiana, New York, Georgia, and Maryland are some of the most expensive states for car insurance. Maine, Ohio, Virginia, and Wisconsin are some of the cheapest states for car insurance.
  • Potential discounts: If you add a teen driver and car to your plan, you might benefit from multivehicle discounts. Some car insurance companies also offer a discount for good grades that can help teen drivers save money.

Is Car Insurance More Expensive for Males or Females Who Are 16-Years-Old?

When all other factors are equal, males tend to pay more for car insurance than females.

Average cost of auto insurance for 16-year-old males* $500
Average cost of auto insurance for 16-year-old females* $450
Average difference $50

*Per month for a full-coverage policy

What is the Cheapest Auto Insurance for 16-Year-Olds?

The cheapest full coverage car insurance for 16-year-old drivers may be through companies including Erie Insurance, Farmers Insurance, and USAA. You can only get coverage through USAA, however, if you’re a qualified current or former member of the military, a spouse of a qualified individual, or a child of a USAA member.

Here’s a breakdown of average monthly premiums for 16-year-old drivers for full coverage policies from various car insurance companies:

Company Average monthly premium, full-coverage policy for 16-year-old driver
Farmers Insurance $415
GEICO $480
Nationwide $540
State Farm $575
Progressive $775
Allstate $1,140

Why is Car Insurance for 16-Year-Olds So Expensive?

Auto insurance companies consider their risk when setting premium prices. The Centers for Disease Control and Prevention reports that drivers aged 16 to 19 are three times more likely to be involved in a serious accident than drivers aged 20 or older. Because teen drivers come with more risk, insurance companies set higher prices for their policies.

How Can 16-Year-Old Drivers Save On Car Insurance?

Insurance for teen drivers is rarely cheap, but you can take some steps to reduce the price point. Some tips for doing so include:

  • Adding a teen to your existing policy rather than buying an individual one only for them. This can result in savings of around 50%
  • Getting discounts. Ask about good student and defensive driver discounts when you get a quote. Many insurance companies provide a discount for students that carry a B average or better in school or take defensive driving education classes.

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  • Written by

    Brian Greenberg

    CEO / Founder & Licensed Insurance Agent

    Brian is the founder and CEO of Insurist and carries Life, Health, and Property & Casualty licenses in all 50 U.S. states. Since 2013, Brian has been a member of Million Dollar Round Table, a designation for the top 1% of financial advisors worldwide. Brian has been featured in Yahoo! Finance, Money.com, Entrepreneur.com, Life Happens, Forbes, MSN, and Good Financial Cents. Brian’s goal is to show customers the best products, the quickest answers to their questions, and provide expert advice.

  • Reviewed by

    Paige Geisler

    Licensed Insurance Agent

    Paige is an assistant agent for State Farm and is licensed to sell property and casualty, health, and life insurance in Virginia. She handles all different types of insurance and financial services and is currently working on a securities and bonds license. Paige has a degree from Radford University in English and is a certified notary.