Cheapest Car Insurance for 16-Year-Olds

The cheapest car insurance rates for 16-year-olds start at $272 monthly. The most affordable companies are Auto-Owners, State Farm, and GEICO.

Find out if you're overpaying for car insurance below.

Written by Mark Fitzpatrick

Updated: December 29, 2025

Advertising & Editorial Disclosure

Key Takeaways

Auto-Owners is the cheapest car insurance for 16-year-olds, averaging $131 per month or $1,575 per year for minimum coverage.

Car insurance for 16-year-olds costs an average of $150 monthly for teens with a clean record.

Car insurance is more expensive for 16-year-olds because of limited driving experience, no established credit score and higher risk of accidents.

What Is the Cheapest Car Insurance for 16-Year-Olds?

Auto-Owners and State Farm both provide competitive rates for 16-year-old drivers, but Auto-Owners is more affordable. Auto-Owners offers the cheapest minimum coverage at $272 per month. State Farm is the second most widely available and cheapest option, with minimum coverage rates averaging $299 monthly.

For full coverage, the difference is more pronounced. State Farm's $339 premium is $53 more than Auto-Owners' $286 monthly rate. USAA is the second cheapest overall at $276 per month, but its policies are only available to military members and their families.

Why You Can Trust MoneyGeek

We analyzed 4,284 quotes from six major insurance companies across 100 ZIP codes nationwide to determine the most affordable car insurance rates for 16-year-old drivers. All quotes reflect adding a 16-year-old to a family policy using state minimum coverage unless otherwise noted, calculated using a standardized profile of a 16-year-old driver with a clean record operating a 2012 Toyota Camry.

Mark Fitzpatrick, a licensed Property and Casualty Insurance Producer and MoneyGeek's Personal Finance Expert, with over five years of experience analyzing insurance markets and features, reviewed our methodology. We update it monthly, with our most recent analysis completed in December 2024.


Auto-Owners Insurance Co	$272	$286	41%	76
USAA	$276	$285	41%	79
State Farm	$299	$339	33%	69
GEICO	$405	$472	8%	63
Nationwide	$445	$454	5%	60

*Rates are for a state-minimum, liability-only policy for male drivers with no credit score, driving a 2012 Toyota Camry.

Cheapest Car Insurance for 16-Year-Olds by State

Auto-Owners is the cheapest insurer for 16-year-old drivers, averaging $272 per month for minimum coverage. However, Auto-Owners is a regional insurer available in 26 states across the Midwest, South and East. This limited availability means it isn't an option for everyone.

State Farm is the next most affordable car insurer for teens, a widely available national provider offering competitive rates in 10 states, with an average minimum premium of just $299 per month.


Alabama	USAA	$345	$340	38%
Alaska	GEICO	$321	$306	32%
Arizona	Auto-Owners Insurance Co	$291	$293	47%
Arkansas	State Farm	$303	$307	46%
California	Auto-Owners Insurance Co	$261	$304	34%
Colorado	Auto-Owners Insurance Co	$376	$375	36%
Connecticut	Kemper	$335	$347	51%
Delaware	State Farm	$343	$383	62%
District of Columbia	GEICO	$429	$374	47%
Florida	GEICO	$284	$441	55%
Georgia	Auto-Owners Insurance Co	$296	$299	42%
Hawaii	State Farm	$75	$73	41%
Idaho	State Farm	$172	$181	56%
Illinois	Auto-Owners Insurance Co	$257	$238	50%
Indiana	USAA	$263	$241	40%
Iowa	State Farm	$248	$246	42%
Kansas	Nationwide	$290	$239	48%
Kentucky	State Farm	$308	$332	40%
Louisiana	USAA	$440	$527	49%
Maine	Concord Group	$150	$149	57%
Maryland	USAA	$404	$398	29%
Massachusetts	State Farm	$176	$175	60%
Michigan	GEICO	$309	$294	64%
Minnesota	Auto-Owners Insurance Co	$320	$292	34%
Mississippi	USAA	$378	$370	27%
Missouri	USAA	$260	$233	66%
Montana	State Farm	$258	$272	59%
Nebraska	Auto-Owners Insurance Co	$314	$275	48%
Nevada	State Farm	$345	$431	48%
New Hampshire	Concord Group	$150	$157	63%
New Jersey	GEICO	$222	$253	67%
New Mexico	USAA	$289	$294	43%
New York	Progressive	$352	$368	37%
North Carolina	State Farm	$134	$140	58%
North Dakota	Nationwide	$304	$224	47%
Ohio	Auto-Owners Insurance Co	$251	$235	53%
Oklahoma	State Farm	$283	$311	51%
Oregon	State Farm	$261	$283	48%
Pennsylvania	Travelers	$265	$284	45%
Rhode Island	State Farm	$284	$275	70%
South Carolina	Auto-Owners Insurance Co	$322	$330	45%
South Dakota	USAA	$364	$302	41%
Tennessee	State Farm	$279	$286	47%
Texas	State Farm	$290	$300	55%
Utah	Auto-Owners Insurance Co	$348	$346	49%
Vermont	Concord Group	$176	$178	47%
Virginia	Auto-Owners Insurance Co	$283	$273	49%
Washington	Auto-Owners Insurance Co	$257	$264	49%
West Virginia	State Farm	$245	$263	57%
Wisconsin	Auto-Owners Insurance Co	$248	$241	57%
Wyoming	Farmers	$300	$248	32%

STATE-SPECIFIC CONSIDERATIONS:

Graduated license laws: States with stricter licensing programs, like New Jersey and California, experience 20% to 40% fewer teen crashes through extended supervision.
Night driving restrictions: Most states ban unsupervised driving for newly licensed teens between 10 p.m. and 6 a.m.
Moving considerations: Moving requires notifying your insurer within 30 days to maintain coverage and avoid premium increases.

Best Car Insurance Rates for 16-Year-Olds

For 16-year-old drivers, Amica offers the superior combination of quality and competitive rates, earning the top MoneyGeek Score of 95 out of 100. The insurer offers the best rates for clean driving records at $150 monthly and maintains competitive pricing even after accidents. Drivers with not-at-fault accidents pay $152 monthly, while those with at-fault accidents pay $177 monthly.

Your teen's driving record affects which insurer offers the best value. Travelers provides the lowest rates for serious violations like DUIs at $187 monthly and speeding tickets at $164 monthly. State Farm works best for texting while driving violations at $165 monthly.


Clean	Amica	$150	95
Not At Fault Accident ($1000-$1999 Prop Dmg)	Amica	$152	95
At Fault Accident ($1000-$1999 Prop Dmg)	Amica	$177	95
Speeding 11-15 MPH over limit	Travelers	$164	93
Texting While Driving	State Farm	$165	91
DUI - BAC >= .08	Travelers	$187	92

Best for 16-Year-Olds with Clean Records: Amica

Amica

Amica is the premium provider for drivers with a stable history. It consistently achieves the highest overall quality score in the industry. Amica provides superior value and customer service whether the driver has a Clean record (median $150 monthly, $1,800 annually) or is recovering from a Not At Fault Accident (median $152 monthly). Even after an At Fault Accident, Amica maintains its top service quality with highly competitive rates (median $177 monthly).

Best Value for High-Risk Incidents: Travelers

Travelers

Travelers excels in providing competitive coverage and high-value recovery options for serious driving issues like a Speeding ticket or a DUI. It is the best option for these drivers because it offers the Responsible Driver Plan, an optional feature including Minor Violation Forgiveness that can help prevent a rate increase following a driver's first ticket.

Travelers also provides valuable tools like IntelliDrive, which gives drivers personalized feedback on acceleration, speed, and distraction, promoting safer driving habits long-term. Drivers with a DUI see median rates around $187 monthly ($2,244 annually), while those with a Speeding ticket pay about $164 monthly ($1,968 annually).

How to Get the Cheapest Car Insurance for 16-Year-Olds

Finding affordable teen car insurance requires careful consideration of coverage options, timing and financial planning. These factors help parents make informed decisions while securing the best possible rates. Car insurance for 16-year-olds is expensive, but these nine strategies can help reduce costs substantially. Many families can save hundreds or thousands of dollars annually by combining multiple approaches.

1
Shop around for the cheapest rates
Comparing quotes saves money—price differences between the cheapest and most expensive policies for teens reach up to 30%. Get quotes from at least three insurers to find the best rate for your teen's profile.
2
Take advantage of good student discounts
Teens maintaining a 3.0 GPA or higher save 10% to 25%, or $300 to $800 annually. Keep report cards as proof and notify your insurer when grades improve to qualify for savings.
3
Choose a safe, affordable vehicle
Safe models are often the cheapest cars to insure for teenagers. The Honda Civic or Toyota Corolla costs significantly less to insure than sports cars or luxury vehicles, which can result in premiums that are double or triple the cost. Avoid high-performance vehicles that attract higher rates due to theft risk and repair costs.
4
Adjust coverage levels strategically
Increase deductibles from $500 to $1,000 to save 15% to 20%. For older vehicles worth under $3,000, consider dropping comprehensive and collision coverage while maintaining high liability limits.
5
Enroll in usage-based insurance programs
These programs monitor driving behavior through smartphone apps or plug-in devices and reward safe driving with discounts of 10% to 30%. Safe teen drivers benefit most from programs that track hard braking, rapid acceleration and night driving hours.
6
Complete driver training courses
Professional driver training earns discounts of 5% to 15%. AAA and National Safety Council programs are widely accepted, with online options available for convenience.
7
Bundle multiple policies
Parents adding their 16-year-old to their policy should combine auto insurance with homeowners or renters insurance for multi-policy discounts of 10% to 25%, saving $400 to $1,200 annually. Adding inexpensive renters insurance often saves more on your auto policy than the renters policy costs. Adding your teen's vehicle as a second or third car to your policy earns multi-car discounts of 10% to 20%, making it more cost-effective than insuring the vehicle separately.
8
Qualify for low-mileage discounts
Teens driving fewer than 7,500 miles yearly save 5% to 15%. Low-mileage discounts work well for students who mainly drive to school and nearby activities.
9
Choose a vehicle with advanced safety features
Anti-theft systems, multiple airbags and ABS brakes reduce premiums by 5% to 20%. Advanced safety technologies like automatic emergency braking may qualify for additional savings with participating insurers.

How Much Does Car Insurance Cost for 16-Year-Olds?

The average cost to insure a 16-year-old male with basic liability coverage is about $251 per month, though your rate will vary. Factors such as age, gender, driving history, location and even school performance can influence what you pay. Teens under 18 can't legally purchase their own car insurance without a parent or guardian as a co-signer in most cases.

Data filtered by:


National General	$121	$1,453	89
Geico	$188	$2,250	85
AIG	$204	$2,444	85
Travelers	$230	$2,765	86
Chubb	$263	$3,158	80
Nationwide	$268	$3,222	81
Kemper	$269	$3,229	71
Allstate	$273	$3,271	81

Inexperience: Accounts for 38% of teen crashes. New drivers struggle with hazard recognition while feeling overly confident.

Speeding: Causes 31% of fatal teen crashes. Newly licensed drivers are highly susceptible to speed-related accidents.

Gender Differences: Male teens pay 15% to 20% higher premiums. They're 2.5 times more likely to speed and drive aggressively than females.

Distracted Driving: Accounts for 25% of teen crashes. Cell phones distract drivers during 11% of trips. Passengers contribute to 15% of accidents.

When Do Car Insurance Rates Drop for 16-Year-Olds?

Rates start falling as teen drivers gain experience, a trend driven by three key factors: lower accident rates, longer insurance history, and improved credit.

After just one claim-free year, many insurers offer discounts ranging from 10% to 15%. Rates then continue to fall as the driver matures:

Premiums usually drop 20% at age 18.
Rates fall another 8% at age 19.
A further 6% reduction is often seen at age 21.

Why Premiums Fall: Key Factors

Insurance companies lower premiums based on verifiable risk reduction:

Fewer Accidents: Older drivers tend to develop safer driving habits and are statistically less likely to cause a claim.
Longer Insurance History: Insurers view long-term policyholders as less risky, reflecting policy commitment and predictability.
Improved Credit: Drivers with better credit histories often qualify for lower rates, as credit aligns with financial responsibility.

Cheap Car Insurance for 16-Year-Olds: Bottom Line

Car insurance for 16-year-olds is expensive, but teens can save by comparing quotes, staying on a family policy and using discounts. National General offers some of the most affordable rates for 16-year-old drivers nationally. You can often save more by comparing quotes from different companies.

Cheapest Car Insurance for 16-Year-Olds Chart

Car Insurance for 16-Year-Olds: FAQ

Getting cheap car insurance for 16-year-olds starts with understanding the factors that drive up teen driver costs. Here are answers to frequently asked questions about finding affordable coverage for this age group:

What is the cheapest insurance company for 16-year-olds?

National General offers the cheapest car insurance for 16-year-olds, based on recent surveys of average premiums for teen drivers. Other affordable providers include GEICO, AIG, AAA and Travelers, which offer competitive rates and discounts for young drivers.

How much is car insurance for a 16-year-old per month?

The average cost of car insurance for a 16-year-old is $251 monthly, but rates vary depending on location, coverage and driving history.

Is car insurance more expensive for 16-year-old males?

Car insurance is usually more expensive for 16-year-old males because they're statistically more likely to be involved in accidents than their female peers. Insurers set higher premiums to reflect this increased risk.

Can a 16-year-old get their own car insurance policy?

Most 16-year-olds can't purchase car insurance because they're under 18. Instead, they must be added to a parent or guardian's policy. Some states allow special underwriting options if a teen owns a car under their name, but premiums are much higher.

What is the cheapest way for a 16-year-old to get car insurance?

The cheapest car insurance for teenagers is usually achieved by adding them to a parent's policy, which can cut costs by up to 50%. Additional savings are possible through good student discounts, multi-car discounts and safe driving programs.

What is the best car insurance for 16-year-olds?

Some of the best companies offering affordable car insurance for teens include National General, GEICO and AIG. These companies provide competitive teen rates and discounts to help families save on premiums.

Does a 16-year-old need full coverage car insurance?

Minimum coverage is the cheapest option, but many parents choose full coverage car insurance for better financial protection against accidents, theft and damage. Selecting a safe, affordable vehicle can help reduce full coverage premiums.

Why is car insurance so expensive for 16-year-olds?

Insurance for 16-year-olds is costly because teen drivers are considered high-risk due to inexperience and higher accident rates. However, premiums usually drop by 8% at age 19 and 6% at age 21 as insurers view them as less risky.

Best Auto Insurance for 16-Year-Old Drivers: Our Methodology

Teen drivers crash three times more often than drivers over 20, making insurance shopping critical for families. We designed this methodology to help parents find legitimate savings while understanding exactly what coverage protects their 16-year-old behind the wheel.

Sample Driver and Data Collection

We collected 4,284 price estimates from 100 ZIP codes across all 50 states, using data from state insurance departments and Quadrant Information Services. This sample size captures real regional price variations that affect what families actually pay. Our baseline driver profile represents a typical new teen driver:

Vehicle: 2012 Toyota Camry LE (safe, affordable, commonly insured for teens)
Driving record: Clean (no violations or accidents)
Annual mileage: 12,000 miles
Credit: No established credit score (realistic for 16-year-olds)

We adjusted this profile across six major insurance providers to compare rates for different scenarios—clean records, speeding tickets, at-fault accidents and DUIs. This shows parents what premiums look like both now and if their teen makes a mistake.

Coverage Analysis

Your deductible is what you pay before insurance covers the rest of a claim. We analyzed two coverage levels because families have different needs and budgets:

Minimum coverage rates use state-required liability limits only. This is the cheapest legal option but leaves your family paying out of pocket for your teen's car damage.

Full coverage rates include comprehensive and collision protection with a $1,000 deductible plus 100/300/100 liability limits:

$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$100,000 property damage liability per accident

These higher limits protect your assets if your teen causes a serious accident. The $1,000 deductible balances affordable premiums with manageable out-of-pocket costs.

Quality Scoring

Beyond price, we evaluated insurers on customer satisfaction, financial strength, digital tools and claims handling. Our MoneyGeek Score (0-100) weighs these factors so you can identify companies offering both low rates and reliable service when your teen needs to file a claim.

Statistical claims throughout this analysis come from authoritative sources as of December 2024:

CDC: Teen driver fatality statistics and accident data
IIHS: Crash rates by age group and vehicle safety ratings
NHTSA: Teen accident causes and prevention research
Quadrant Information Services: Insurance rate data and premium calculations
State Insurance Departments: Coverage requirements and regulatory information

What Is the Cheapest Insurance for a 16-Year-Old: Related Articles

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

He writes about economics and insurance, breaking down complex topics so people know what they're buying.

Read Full Bio »

sources

Centers for Disease Control and Prevention. "Risk Factors for Teen Drivers." Accessed June 11, 2025.