How Much Is Car Insurance for a 16-Year-Old in 2024?


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ByMark Fitzpatrick
Reviewed byMark Friedlander
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ByMark Fitzpatrick
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Reviewed byMark Friedlander
Edited byBenjamar Gabawa
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Updated: May 20, 2024

Advertising & Editorial Disclosure

Full coverage car insurance for 16-year-olds on a family policy typically costs around $3,732 for males and $3,401 for females yearly. Male teens usually pay $300 more each year for coverage, but the difference in rates typically levels off once they turn 25.

To further drive down rates, consider getting your teens some of the cheapest car models to insure like the Subaru Outback, MINI Cooper and the Honda Odyssey.

Key Takeaways

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The main reason for the high cost of car insurance for 16-year-olds is that they're seen as high-risk drivers. This is based on their greater likelihood of risky driving and higher accident rates.

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Add them to a family policy as the best approach to cut car insurance costs for teens. Regularly compare rates and adjust coverage as the teen ages for additional savings.

Why Trust MoneyGeek? We collected our data from state insurance departments and Quadrant Information Services, analyzing 706,104 quotes from 67 companies across 897 ZIP codes.

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These rates reflect the average cost of car insurance for 16-year-olds as of 2024.

706,104Quotes Analyzed
 
67Companies Compared
 
897ZIP Codes

Average Cost of Car Insurance for 16-Year-Olds by Gender

The average cost of a full coverage car insurance policy for 16-year-old males and females is:

  • Female: $3,401 per year; $283 per month
  • Male: $3,732 per year; $311 per month

Teen male drivers typically pay more for car insurance than teen female drivers. This difference in cost is because male teens are generally considered riskier on the road and are statistically more likely to be involved in accidents. By the time drivers reach the age of 25, however, the rate difference becomes less significant as other factors like driving history and experience play a more prominent role in determining premiums.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
FemaleFamily Policy Annual Premium$3,401Family Policy Monthly Premium$283
MaleFamily Policy Annual Premium$3,732Family Policy Monthly Premium$311

Why Car Insurance Is Expensive for 16-Year-Olds

Teen drivers often face higher insurance costs because they're considered riskier to insure. This perspective is backed by data from the Centers for Disease Control and Prevention (CDC), highlighting that teens exhibit more dangerous driving behaviors than more experienced drivers. Insurers rely on this data, among other factors, to assess risk, as insurers can't rely on historical data for new drivers. Consequently, 16-year-old drivers typically encounter some of the most expensive insurance rates.

Teen drivers face a higher risk on the road, with statistics from the Insurance Institute for Highway Safety (IIHS) showing they're more likely to be involved in fatal accidents. In fact, for every mile they drive, teens are nearly three times more likely to be in a deadly crash compared to drivers over 20.

As teen drivers gain experience and demonstrate safe driving habits, their rates will start to decrease when they enter their 20s. In the meantime, various discounts and strategies are available to help lower their premiums immediately.

Cheapest Car Insurance Companies by Company

The cheapest car insurance companies for male and female 16-year-olds are:

  • Full Coverage Policy: Nationwide ($2,718 per year; $226 per month)
  • Liability-Only Policy: GEICO ($689 per year; $57 per month)

Car insurance companies each have unique rating factors, with different weights assigned to each, to determine your premiums. What's the cheapest option for a 25-year-old might be different for a 16-year-old.

It's crucial to shop around and compare quotes from at least three insurers to find the best rates for your unique situation. Collect quotes every year, even before your policy renewal — or whenever your insurance needs change — to find the most affordable insurer tailored to your current circumstances.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
NationwideFamily Policy Annual Premium$2,718Family Policy Monthly Premium$226
GEICOFamily Policy Annual Premium$2,936Family Policy Monthly Premium$245
State FarmFamily Policy Annual Premium$3,055Family Policy Monthly Premium$255
AllstateFamily Policy Annual Premium$3,292Family Policy Monthly Premium$274
TravelersFamily Policy Annual Premium$3,436Family Policy Monthly Premium$286
ProgressiveFamily Policy Annual Premium$3,454Family Policy Monthly Premium$288
FarmersFamily Policy Annual Premium$3,562Family Policy Monthly Premium$297

Average Cost of Car Insurance for 16-Year-Olds in an Individual Policy vs. Family Policy

On average, a 16-year-old on a full coverage policy will pay:

  • Added to the family policy: $3,567 per year
  • On an individual policy: $10,626 per year

Adding a 16-year-old to a family car insurance policy typically costs much less than having their own policy. On a family policy, a teen might pay around three times less. However, on their own policy, a teen could face charges over $10,000, as insurers are less forgiving with separate teen policies.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
$3,567Individual Premium$10,626Increase in Premium$7,059

Average Cost of Car Insurance for 16-Year-Olds by State

Car insurance costs for 16-year-old drivers can vary remarkably by state, with some locations being significantly more expensive than others. Here's a glance at the annual and monthly rates for a full coverage policy in the three states with the most licensed drivers:

  • California: $3,772 per year; $314 per month
  • Florida: $5,673 per year; $473 per month
  • Texas: $3,687 per year; $307 per month

Young drivers looking for the most affordable car insurance can find the best rates in Hawaii, where insurers are not permitted to use age as a factor when determining policy costs. A full coverage family policy's annual premium for a teen driver typically stands at $1,040, which breaks down to a monthly premium of $87.

The pursuit for cost-effective insurance for teen drivers can continue with Rhode Island, Vermont and Iowa following Hawaii in providing some of the most reasonable rates across the United States.

Data filtered by:Results filtered by:
Gender:
Gender:Male
AlabamaFamily Policy Annual Premium$2,896Family Policy Monthly Premium241
AlaskaFamily Policy Annual Premium$3,027Family Policy Monthly Premium252
ArizonaFamily Policy Annual Premium$3,028Family Policy Monthly Premium252
ArkansasFamily Policy Annual Premium$2,494Family Policy Monthly Premium208
CaliforniaFamily Policy Annual Premium$3,772Family Policy Monthly Premium314
ColoradoFamily Policy Annual Premium$2,994Family Policy Monthly Premium250
ConnecticutFamily Policy Annual Premium$2,746Family Policy Monthly Premium229
DelawareFamily Policy Annual Premium$3,358Family Policy Monthly Premium280

Can a 16-Year-Old Get Their Own Car Insurance

For most 16-year-old drivers, getting their own car insurance policy isn't possible unless they're in unique situations like being in the military (with parental consent) or are legally emancipated. Sixteen-year-olds are not legally allowed to purchase their own car insurance policy without written consent of a parent or guardian. As such, it's usually, it's up to the parents to include their teen drivers in the family policy. This typically continues until the young driver moves out.

In most states, the age of majority is 18. At 18, a teen driver can buy their own coverage.

How to Save on Car Insurance for 16-Year-Olds

Steering a 16-year-old toward a safer car and encouraging them to embrace safe driving through telematics programs and driver's education courses can significantly reduce their insurance costs. Ultimately, adding them to the family's existing car insurance policy often turns out to be the best and cheapest car insurance option for 16-year-olds.

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    Shop around

    To secure the lowest rates, shop around and compare insurance providers, focusing on those offering the most competitive rates for teen drivers before applying discounts. Make sure to get at least three quotes with identical coverage levels before deciding.

    As your teen driver reaches adulthood and gains more road experience, watch for different insurers who might offer a better deal at lower rates tailored to your evolving needs.

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    Add a teen driver to the family policy

    When your young driver gets their permit or driver's license, your insurer usually requires adding them to your car insurance policy. Finding an insurer covering a teen driver under their own policy is also often difficult and expensive.

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    Drive safe

    Choosing a vehicle that's both affordable and equipped with safety features can lead to lower insurance rates, as these cars are typically less risky to insure.

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    Ask about all possible discounts

    It's important to explore every car insurance discount for students, including those for good students, safe driving and specific programs for young drivers. Many companies also offer a "student away at school discount," which could apply to 16-year-olds who attend boarding school or are early college entrants.

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    Choose coverage wisely

    Selecting the suitable types and amounts of coverage is crucial. Opting for higher deductibles and avoiding unnecessary extras can help reduce premiums. When the insurance cost outweighs the car's value, it might be time to drop collision and comprehensive coverage.

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    Build a safe driving record

    Enrolling in and completing a certified driver's education course improves driving skills and can lead to insurance discounts. Additionally, maintaining a clean driving record free of accidents and traffic violations over time is essential for lowering insurance costs.

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    Consider a telematics program

    Some insurers offer discounts based on driving behavior monitored through telematics programs. However, some usage-based programs can raise your rates if it detects poor driving habits.

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    Bundle policies

    Combining car insurance with other insurance policies like homeowners or renters insurance under the same provider can offer savings. Insurers offer an average discount of 13% for home and auto bundles.

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    Drive less

    Reducing the amount of driving can decrease the risk of accidents, potentially leading to lower insurance rates.

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    Review and update the policy regularly

    Changing circumstances can affect insurance needs. Regular policy reviews ensure adequate coverage and the best possible rates.

Car Insurance Discounts for Teen Drivers

Car insurance discounts centered around good academic performance and safe driving can reduce premiums for 16-year-old drivers.

Car insurance companies typically offer Student Away From Home or Distant Student discounts for college students who study over 100 miles away from their homes. If your 16-year-old attends boarding school or is an early college entrant, ask your insurer if they’re eligible for the discount.

Insurance Company
Student Car Insurance Discounts
  • Good student discount: Earn up to 25% off for under-25 drivers with a "B" average or better.
  • Driver training discount: Benefit from discounts for drivers under 21 who complete approved driver training courses.
  • Drive Safe & Save: State Farm offers a unique usage-based program for teens that can help families save up to 30% while their teen learns to drive.
  • Steer Clear: Drivers under 25 with no at-fault accidents or moving violations within the past 3 years can save up to 15%.
  • Good student discount: Qualify for reduced rates with a "B" average or higher.
  • Good driver discount: Enjoy incentives for five years of accident-free driving.
  • Good student discount: Take advantage of lower rates for students under 23 maintaining a "B" average or better.
  • Teen driver discount: Special pricing is available for drivers aged 18 and younger.
  • Smart student discount: Secure discounts for under-25 students achieving good grades.<
  • teenSMART driver education program: Gain rewards through the teenSMART driver education program for safe driving.
  • Good student discount: Access discounts for full-time students aged 16 to 24 with a "B" average.
  • Driver’s education discount: Receive benefits for completing approved driver’s education courses.

FAQ

Whether you're a parent figuring out the best way to insure your teen driver or a young driver yourself looking for clarity, our FAQ section is here to help. We've gathered the most common questions and provided clear, easy-to-understand answers to guide you through understanding car insurance policies for 16-year-old drivers.

How much is car insurance for a 16-year-old monthly?
Can a 16-year-old driver buy their own car insurance policy?
Can you buy insurance for a 16-year-old driver?
Does a learner's permit driver need car insurance?

About Mark Fitzpatrick


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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.


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