Cheapest Car Insurance for 16-Year-Olds


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Key Takeaways

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Concord Group, Auto-Owners, Encompass, State Farm and Nationwide are five of cheapest car insurance companies for 16-year-old drivers.

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The cheapest car insurance premium for 16-year-olds can be as low as $83 per month for minimum coverage and $149 monthly for full coverage, but rates in some states are as low as $59 per month.

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The average car insurance cost for 16-year-old drivers is $220 per month for minimum coverage and $431 for full coverage.

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Cheapest Minimum Liability Car Insurance for 16-Year-Olds

State Farm offers the cheapest minimum liability car insurance among national providers for 16-year-old drivers at around $1,572 per year, 40% cheaper than the average premium rate on a family policy. Concord Group or Auto-Owners are the best affordable choices if you are in their service area.

Concord Group$83$138
Auto-Owners Insurance Co$115$106
Encompass$143$78
State Farm$147$74
Nationwide$191$30

Rates are for a family policy for both male and female drivers with clean records and good credit insuring a 2012 Toyota Camry.

Cheapest Full Coverage Car Insurance For 16-Year-Olds

Concord Group is the cheapest full coverage car insurance company for 16-year-old drivers, which costs $1,788 per year when added to a family policy. However, the company's services are not available in all states. State Farm and Nationwide are the most affordable options nationwide.

Concord Group$149$282
Auto-Owners Insurance Co$251$180
State Farm$292$139
Encompass$334$97
Nationwide$335$96

Rates are for a family policy for both male and female drivers with clean records and good credit insuring a 2012 Toyota Camry.

Cheapest Car Insurance for 16-Year-Olds by State

The cheapest car insurance costs for 16-year-olds on a family policy vary from $59 to $396 per month depending on the state you live in. Below, we've broken down the most affordable companies for this age group by state.

HawaiiState Farm$59
MississippiProgressive$59
MassachusettsState Farm$85
OhioNationwide$87
MaineConcord Group$88
New HampshireConcord Group$90
KansasNationwide$92
South DakotaAllstate$97
PennsylvaniaNationwide$99
North DakotaNationwide$99
North CarolinaState Farm$100
WisconsinNationwide$105
VirginiaNationwide$106
MissouriGEICO$108
IdahoState Farm$110
VermontConcord Group$111
ColoradoKemper$116
UtahNationwide$124
New YorkKemper$126
OregonNationwide$131
ConnecticutGEICO$132
MontanaProgressive$133
WyomingAllstate$134
IowaAllstate$137
TennesseeNationwide$139
ArkansasAllstate$141
IndianaNationwide$142
GeorgiaAllstate$145
West VirginiaNationwide$149
WashingtonKemper$149
MarylandKemper$152
District of ColumbiaGEICO$153
MinnesotaNationwide$154
AlabamaAllstate$155
New MexicoNationwide$160
OklahomaAllstate$162
MichiganGEICO$163
NebraskaAllstate$163
ArizonaTravelers$164
KentuckyAllstate$165
New JerseyGEICO$172
AlaskaGEICO$178
Rhode IslandState Farm$182
IllinoisProgressive$183
TexasState Farm$189
South CarolinaAuto-Owners Insurance Co$213
NevadaNationwide$214
DelawareGEICO$244
CaliforniaState Farm$245
FloridaNationwide$272
LouisianaState Farm$396

Rates are for male drivers with clean driving records and good credit insuring a 2012 Toyota Camry with minimum coverage.

Cheapest Car Insurance for 16-Year-Olds by Gender

Sixteen-year-old male drivers typically pay higher insurance rates than female drivers of the same age because of increased accident risks. Below, you'll find the cheapest national providers for both male and female genders in this age group.

Cheapest Car Insurance for 16-Year-Old Female Drivers

For 16-year-old female teens, State Farm is the most affordable national car insurance provider, with savings of about 37% annually compared to the average cost for this age group. Female drivers generally have cheaper rates than their male counterparts. This is due to statistical data showing that young female drivers are involved in fewer accidents than young males.

Concord Group$79$129$142$264
Auto-Owners Insurance Co$102$107$225$181
State Farm$131$77$261$145
Encompass$143$66$334$72
Nationwide$176$33$304$102

Rates are for female drivers with clean driving records and good credit insuring a 2012 Toyota Camry.

Cheapest Car Insurance for 16-Year-Old Male Drivers

State Farm also offers the lowest monthly rate among national insurers for 16-year-old male drivers on a family policy, at $163. Concord Group and Auto-Owners offer affordable rates for eligible drivers. Male young drivers generally face higher costs than female drivers due to their statistically higher likelihood of being involved in accidents.

Concord Group$87$146$155$301
Auto-Owners Insurance Co$127$106$277$179
Encompass$143$90$334$122
State Farm$163$70$323$133
Nationwide$205$28$366$91

Rates are for male drivers with clean driving records and good credit insuring a 2012 Toyota Camry.

Cheapest Cars to Insure for 16-Year-Olds

When purchasing a new car for a teen driver, it's wise to include them on your policy with a vehicle that's both safe and cost-effective to insure. Below, you'll find a list of the most budget-friendly models by vehicle type to insure for 16-year-old drivers.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Subaru ForesterCompact SUVState Farm$3,415
Subaru OutbackSedanState Farm$3,452
Nissan FrontierPickup TruckState Farm$3,578
Honda PassportSUVState Farm$3,667
Honda OdysseyMinivanState Farm$3,729
MINI CooperCompactState Farm$3,857
Acura MDXLuxury SUVState Farm$3,989
Chevy BoltElectricState Farm$4,000
Ford Mustang EcoboostSports CarState Farm$4,253
Mercedes GLA 250Luxury Compact SUVState Farm$4,337
BMW 3 SeriesLuxury SedanState Farm$4,683
Tesla Model YLuxury ElectricState Farm$5,027
BMW 1 SeriesLuxury CompactState Farm$5,068
Porsche TaycanLuxury Sports CarGEICO$6,114

Rates are for drivers with clean driving records and good credit.

Average Cost of Car Insurance for 16-Year-Olds

The average car insurance cost for 16-year-olds is approximately $2,640 per year for minimum coverage and $5,172 per year for full coverage. However, this average only reflects drivers with clean records and good credit — your rate may differ based on your specific driving profile.

Car Insurance Cost for 16-Year-Olds by Coverage and Gender

Below, we’ve outlined the average expenses for adding 16-year-old male and female drivers to a family policy, categorized by coverage level.

State Min - No comp_coll$233$208
State Min - 500 comp_coll$443$394
State Min - 1500 comp_coll$385$344
State Min - 1000 comp_coll$401$357
300/500/300,000 - No comp_coll$341$305
300/500/300,000 - 500 comp_coll$546$485
300/500/300,000 - 1500 comp_coll$488$434
300/500/300,000 - 1000 comp_coll$188$170
100/300/100,000 - No comp_coll$291$260
100/300/100,000 - 500 comp_coll$487$462
100/300/100,000 - 1500 comp_coll$488$434
100/300/100,000 - 1000 comp_coll$456$406

Liability limits expressed above (e.g., 100/300/100) refer to bodily injury liability per person, bodily injury liability per accident and property damage liability per accident, respectively. Numbers expressed after these limits are deductible amounts for both collision and comprehensive coverage.

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

Average car insurance rates by state can vary widely, from $20 to $616 per month. These differences stem from factors specific to each location, including crime rates, weather conditions and population density. To help you gauge costs in your region, we've included average state rates in the table below.

Oklahoma$48$207$133$551
North Carolina$61$217$75$270
Colorado$66$250$153$567
Mississippi$54$222$111$460
Florida$107$473$203$910
Vermont$30$146$58$272
Delaware$79$280$245$864
Nevada$99$372$214$794
Louisiana$120$616$199$1,044
New York$88$297$159$550
West Virginia$56$225$120$479
South Carolina$90$325$148$544
New Jersey$102$390$176$673
New Mexico$52$218$114$470
Hawaii$20$87$25$110
Arkansas$49$208$109$468
Missouri$72$308$156$653
Connecticut$66$229$186$646
South Dakota$38$196$86$433
District of Columbia$67$255$174$654
Iowa$38$167$83$363
Indiana$46$178$102$377
Massachusetts$55$210$94$366
Rhode Island$81$282$249$835
Ohio$84$281$152$511
Michigan$113$434$206$754
Minnesota$51$213$98$399
Pennsylvania$47$216$93$398
Washington$70$235$134$444
Wisconsin$49$202$121$481
Montana$52$241$110$508
Kentucky$65$249$133$512
Arizona$65$252$132$502
Illinois$50$200$108$425
Virginia$79$288$136$492
Maryland$72$238$158$523
Georgia$60$234$133$518
Wyoming$31$197$56$323
Utah$87$314$184$656
New Hampshire$45$158$91$320
North Dakota$34$155$93$399
Nebraska$51$240$113$494
Maine$45$166$78$289
California$69$314$82$371
Tennessee$44$192$103$438
Kansas$47$209$99$427
Texas$78$307$147$593
Oregon$54$197$141$502
Idaho$36$138$90$338
Alaska$60$252$103$416
Alabama$58$241$123$507

Why Car Insurance Is Expensive for 16-Year-Olds

Car insurance for 16-year-olds comes at a high cost because they are classified as high-risk drivers. Teens, particularly those aged 16 to 19, experience higher accident and violation rates, with fatal crashes nearly three times more common than among older drivers. Contributing to these elevated risks are behaviors like nighttime driving, speeding, distractions and neglecting to wear seat belts, which are particularly prevalent among male drivers.

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

Teens face the highest car insurance premiums of any age group. Thankfully, there are strategies that teens and their families can use to reduce these costs. Below are our recommended steps to secure the most affordable coverage:

  1. 1
    Stay on a parent's policy

    Staying on a parent's policy can lead to considerably lower premiums, thanks to the parent's established insurance history and possible multi-car discounts. Insurers typically allow teens who live at home and use a family vehicle, rather than owning one themselves, to remain on a family policy.

  2. 2
    Shop around as much as possible

    Comparing quotes from various auto insurance providers is one of the best ways to cut down on car insurance expenses. According to MoneyGeek's research, price differences between the most affordable and priciest policies for teens can reach up to 30%.

  3. 3
    Find discounts you qualify for

    Sixteen-year-olds are often eligible for various car insurance discounts. Discounts for students, driver education courses for young drivers and usage-based insurance programs can help lower premiums by as much as 40%.

  4. 4
    Choose a safe, older car

    Choosing a more affordable vehicle with a strong safety rating can greatly reduce insurance premiums, as these cars typically cost less to repair and are viewed as lower risk by insurers.

  5. 5
    Adjust your coverage amount

    If you're able to cover the cost of replacing the car yourself, opting for a liability-only car insurance policy can be a smart way to save on premiums. For those who prefer full coverage, raising your deductibles can also help reduce your insurance costs.

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KEY CONSIDERATIONS WHEN SHOPPING: EXPERT TIP

Obtaining quotes from multiple insurance companies is a good idea to see which comes out as the best and cheapest for your specific profile. You also want to ensure the company has optional coverages that are good for a teen driver or any driver to have on their policy. They include roadside assistance and rental car coverage.

Mark Friedlander, Director, Corporate Communications, Insurance Information Institute

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

Car insurance for 16-year-olds can be costly, but teens and their families can find budget-friendly options by comparing quotes, staying on a family policy and taking advantage of available discounts. Among national providers, State Farm offers some of the most affordable rates for 16-year-old drivers. However, shopping around is crucial for finding the best possible price.

Car Insurance for 16-Year-Olds: FAQ

Securing the most affordable car insurance for 16-year-olds can be challenging, given the risk factors that lead to higher premiums for this age group. To help, we've compiled answers to some of the most frequently asked questions on this topic:

What is the cheapest car insurance for an 16-year-old?

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

Why is car insurance expensive for 16-year-old drivers?

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

Auto Insurance for 16-Year-Olds: Our Methodology

MoneyGeek used a sample driver profile to determine national and state averages for vehicle insurance for 16-year-old drivers. Using this information, we assist readers in selecting the best policy at the lowest price possible.

Data Sources and Depth

We collected data from each state's insurance department and Quadrant Information Services. The data consists of 4,284 price estimates from 100 different ZIP codes and six auto insurance providers.

Sample Driver Profile

MoneyGeek calculates yearly car insurance policy estimates based on a policyholder with the following characteristics:

  • Toyota Camry LE
  • Clean driving record
  • 12,000 miles driven every year

To determine which companies provide the most affordable policies, MoneyGeek compared rates for 16-year-old drivers across different states. We made adjustments to this profile to reflect the differences in age, location and driving behavior.

Coverage Levels and Deductibles Explained

A deductible is the money you have to pay out of your own pocket before your insurance company will pay for your claim. Most drivers would benefit from purchasing full coverage vehicle insurance, which covers both collision and comprehensive damage.

For minimum liability coverages, we used state-required limits to judge which provider was most affordable. For full coverage, we used 100/300/100 liability limits with a $1,000 deductible for comprehensive and collision coverage when researching the cheapest providers. Liability limits of 100/300/100 stand for:

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

Learn more about MoneyGeek's car insurance methodology.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He 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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