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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.