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.
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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.
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.
Factors that can impact the cost of coverage for 16-year-old drivers include:
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
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 |
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.
Insurance for teen drivers is rarely cheap, but you can take some steps to reduce the price point. Some tips for doing so include:
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.
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.
