The Best Cheap Car Insurance Companies for 16-Year-Olds

For 16-year-old drivers, Nationwide offers the cheapest average car insurance premium with a monthly cost of $226 and an annual rate of $2,718 when added to a full coverage family policy. This is a significant saving compared to the average cost of $297 monthly and $3,567 annually for an individual policy for a 16-year-old. However, most drivers under 18 are added to family policies as minors cannot legally purchase their own policy without a parent or guardian co-signing.

Below are the two cheapest car insurance providers when adding a 16-year-old driver to your car insurance policy:

• Nationwide: $226 per month, $2,718 per year
• GEICO: $245 per month, $2,936 per year

Teenagers are considered high-risk by insurance companies because they are new drivers and are more likely to get into accidents. As a result, 16-year-olds generally face the highest car insurance rates. To help with these costs, families should explore all student discounts on car insurance available specifically for young student drivers.

The lowest average car insurance rates for 16-year-old drivers are offered by GEICO in Hawaii at just $640. Ohio also has more affordable rates than other states, on average, with Nationwide offering the cheapest at $740 annually.

The cost of insuring a teen driver varies widely between states, influenced by differences in state minimum coverage requirements, accident frequencies and car theft rates. These factors can significantly impact insurance premiums.

The cheapest insurance provider in one state may not be the most affordable in another, as rates are adjusted to local risk factors. Parents should carefully research and understand their state's specific insurance regulations and associated driving risks to ensure they choose the most appropriate and economical car insurance for their 16-year-old drivers.

The rates for 16-year-old male drivers are generally higher than their female counterparts. Nationwide and State Farm are the cheapest car insurance providers for male and female 16-year-old drivers, respectively.

• For males: Nationwide, $233 per month, $2,801 per year
• For females: State Farm, $213 per month, $2,550 per year

These rates reflect the cost of adding a 16-year-old to an existing family car insurance policy.

Young male drivers often face higher premiums because they're viewed as high-risk drivers and are more likely to get into accidents.

If you're looking for more savings, consider exploring student discounts on car insurance.

The type of vehicle a teen driver uses is another significant factor in how much it will cost to add the teen to your policy. Expensive and high-performance cars, for example, will drive up rates. On the other hand, a less expensive, safer car can be an efficient cost-cutter. If you’re looking to buy your 16-year-old driver a car, it’s a good idea to consider how the vehicle type may impact costs. Insurance professionals recommend getting insurance quotes for different types of vehicles before making the purchase.

GEICO offers the best car insurance for 16-year-olds, with an average monthly premium of $245 and an annual premium of $2,936 when added to a family policy. Opting for a reputable provider like GEICO ensures dependable coverage and financial stability, which can be critical in case of a claim.

The average cost of car insurance for a 16-year-old driver will vary based on several factors, including location, car type and, depending on the company, the student's grades. But there is one area where parents can score significant savings: choosing to add a 16-year-old to a family plan. This is typically significantly cheaper than having the teen get an individual policy — and, legally, the parent would have to co-sign for an individual policy if the teen is under 18. Insuring a 16-year-old on an individual policy comes with an average increased cost of $7,058 per year.

Although car insurance for 16-year-olds can be expensive, there are strategies you can use to lower the costs and get the best car insurance for a teen driver. Opting to add young drivers to a family policy is one solid option to consider, which can save hundreds of dollars per year.

Teen drivers typically see higher insurance rates due to a greater likelihood of accidents and moving violations.

According to the National Highway Traffic Safety Administration, young drivers accounted for about 8% of all drivers involved in fatal traffic crashes in 2021 but were only 5% of all licensed drivers.

Despite teens having fewer total deaths than older drivers (because there are not as many of them on the road), they experience more deaths per mile driven, categorizing them as high-risk drivers.

Limiting a teen driver's mileage can not only reduce insurance costs but also enhance their safety.

Affordable car insurance for 16-year-olds is more difficult to find due to their lack of driving experience. MoneyGeek answered commonly asked questions to help you secure low-cost car insurance for young drivers.