Full coverage car insurance for 16-year-olds added to a family policy costs around $663 monthly ($7,956 annually). Minimum coverage costs $330 monthly ($3,960 annually).

Getting their own policy costs much more. Sixteen-year-olds pay nearly $200 more monthly ($192 for full coverage, $112 for minimum coverage) on an individual policy compared to being added to a family plan.

To drive down rates, consider getting your teen one of the the cheapest car models like the Subaru Outback, MINI Cooper and the Honda Odyssey.

Car insurance costs for 16-year-old drivers vary widely by state. Rates in the most expensive states are more than 10 times higher than the cheapest.

Hawaii has the lowest full coverage rates at $203 monthly ($2,436 annually) because insurers can't use age as a rating factor. Young drivers pay the same rates as experienced drivers in Hawaii. This makes it by far the most affordable state for teen coverage. Maine ranks second at $271 monthly, followed by Vermont at $304, North Dakota at $320 and Wyoming at $326 monthly.

Louisiana has the highest rates at $1,057 monthly ($12,684 annually), more than five times Hawaii's cost. Florida comes in second at $935 monthly, with New Jersey at $888, Maryland at $832 and Nevada at $784 rounding out the five most expensive states for teen drivers.

On average, 16-year-old male drivers cost more to insure than females at both coverage levels. For full coverage, families pay about $682 per month for a male driver compared to $645 for a female, a $37 monthly difference. With minimum coverage, the gap narrows to $18 per month, with males averaging $339 and females $321.

The higher cost for male teens reflects higher accident risk during the first years of driving. That gap is most noticeable at age 16, when insurers heavily price in inexperience and claim frequency. As teens gain driving history and move into their early 20s, the difference between rates for men and women shrinks.

In some states, insurers aren’t allowed to use gender when setting rates. In those states, 16-year-old males and females pay identical premiums, regardless of coverage level.

A 16-year-old's driving record has a major impact on insurance costs. A clean driving record costs $330 monthly when added to a family policy for minimum coverage. An at-fault accident increases that to $421 monthly, while a DUI raises it to $528 monthly.

The cost difference becomes even more dramatic for teens getting their own individual policy. A clean record costs $442 monthly for minimum coverage. An at-fault accident pushes that to $647 monthly, and a DUI results in $897 monthly.

Maintaining a clean driving record saves 16-year-olds $91 monthly compared to having an at-fault accident, and $198 monthly compared to a DUI. The savings multiply over time, so practice safe driving habits to keep insurance costs manageable.

The cheapest car insurance companies for 16-year-olds is GEICO at $456 monthly for full coverage and $196 monthly for minimum coverage. Encompass and Amica Mutual also offer competitive rates, with full coverage costing $521 and $536 monthly respectively.

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

Teen drivers face higher insurance costs because they're riskier to insure. Data from the Centers for Disease Control and Prevention (CDC) shows teens exhibit more dangerous driving behaviors than experienced drivers. Insurers use this data, among other factors, to assess risk because they can't rely on historical data for new drivers. That's why 16-year-old drivers pay some of the most expensive insurance rates.

Teen drivers face higher risk on the road. Statistics from the Insurance Institute for Highway Safety (IIHS) show they're more likely to be in fatal accidents. 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 drop when they enter their 20s. In the meantime, various discounts and strategies can lower their premiums immediately.

Most 16-year-old drivers can't get their own car insurance policy unless they're in unique situations like being in the military (with parental consent) or are legally emancipated. Sixteen-year-olds can't legally purchase their own car insurance policy without written consent of a parent or guardian. Parents must include their teen drivers in the family policy. This 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.

Steer your 16-year-old toward a safer car and encourage safe driving through telematics programs and driver's education courses to reduce insurance costs. Adding them to the family's existing car insurance policy is the best and cheapest car insurance option for 16-year-olds.

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

Car insurance companies offer Student Away From Home or Distant Student discounts for college students who study over 100 miles away from their homes. Does your 16-year-old attend boarding school, or are they an early college entrant? Ask your insurer if they're eligible for the discount.

Insuring a 16-year-old costs around $663 monthly when added to a family policy, but rates vary by location and driving record. Hawaii has the lowest rates at $203 monthly, while Louisiana charges more than five times that amount.

The best way to manage costs is adding your teen to your existing family policy rather than getting them a separate policy, which costs nearly $200 more per month. Take advantage of good student discounts, encourage safe driving habits and compare quotes from multiple insurers annually to find the most affordable coverage as your teen gains experience.

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.

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