Updated: July 11, 2025
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National General is the cheapest car insurance for 16-year-olds, averaging $131 per month or $1,575 per year for a state-minimum liability-only policy.
For 30-year-olds, a state minimum liability-only policy costs an average of $251 monthly for males and $261 monthly for females.
Car insurance is typically more expensive for 16-year-olds because of alack of driving experience, a lack of established credit score and higher risk of accidents.
National General offers the cheapest minimum car insurance for 16-year-olds, averaging $131 per month for a state-minimum, liability-only policy, according to MoneyGeek’s analysis. However, the most affordable option can vary depending on your coverage needs. See the table below for a full breakdown.
| National General | $131 | $1,575 | -47% |
| Geico | $166 | $1,992 | -33% |
| AIG | $195 | $2,334 | -22% |
| AAA | $227 | $2,718 | -9% |
| Travelers | $232 | $2,782 | -7% |
| Kemper | $244 | $2,925 | -2% |
| Nationwide | $247 | $2,961 | -1% |
| State Farm | $249 | $2,984 | 0% |
| Chubb | $258 | $3,094 | 4% |
| Amica | $258 | $3,099 | 4% |
| Progressive | $287 | $3,443 | 15% |
| Allstate | $293 | $3,511 | 18% |
| UAIC | $330 | $3,957 | 33% |
| Farmers | $368 | $4,415 | 48% |
*Rates are for a state-minimum, liability-only policy for male drivers with no credit score, driving a 2012 Toyota Camry.
As a teen driver, your car insurance is already pricey, and where you live can make a big difference. Some companies might not even offer coverage in your state. That’s why it’s smart to compare quotes from at least three companies before picking one. Using a MoneyGeek's quote comparison tool can help you find the most affordable car insurance fast, without having to fill out a bunch of forms for each insurer.
Car insurance can be expensive when you're 16, but the price also depends a lot on where you live. For example, according to MoneyGeek, GEICO has the lowest average rate in Hawaii at around $35 a month, while Farm Bureau is the cheapest in Idaho at about $157 a month.
| Cincinnati Insurance | $108 | $1,293 | -54% |
*Rates are for a state-minimum, liability-only policy for male drivers with no credit score, driving a 2012 Toyota Camry.
Based on MoneyGeek’s analysis, National General is also the best car insurance company for 16-year-olds, earning a MoneyGeek score of 89 out of 100. That means you get strong customer service and low prices in one package. Use the table below to see the best provider based on your coverage needs.
| UAIC | $330 | 71 |
| Kemper | $244 | 73 |
| Farmers | $368 | 78 |
| Allstate | $293 | 78 |
| State Farm | $249 | 79 |
| Chubb | $258 | 80 |
| AAA | $227 | 81 |
| Progressive | $287 | 82 |
| Amica | $258 | 82 |
| Nationwide | $247 | 82 |
| Travelers | $232 | 85 |
| AIG | $195 | 86 |
| Geico | $166 | 88 |
| National General | $131 | 89 |
National General, an Allstate company, is one of the largest insurers in the U.S. and has been offering coverage since 1920. It provides a wide range of insurance products, including auto, home and renters, through a network of over 55,000 independent agents. Known for combining affordability with strong customer service, National General is a standout option for drivers looking for value and reliability.
The average cost to insure a 16-year-old male with basic liability coverage is about $251 per month, but your price could be higher or lower. Most teens don’t buy separate policies; they’re usually added to a parent’s plan, which can be way cheaper.
However, your age, gender, driving record, where you live and even your grades can all affect how much you pay. Additionally, costs are different if you get added to your parents’ insurance policies instead.
Use the table below to see how much it costs for you based on your circumstances.
| State Minimum Liability Only | $251 | $3,006 |
| State Minimum Liability w/ Full Cov. w/$1,000 Ded. | $323 | $3,870 |
| State Minimum Liability w/ Full Cov. w/$2,000 Ded. | $426 | $5,110 |
| 100/300/100 Full Cov. w/$1,000 Ded. | $537 | $6,442 |
| 50/100/50 Full Cov. w/$500 Ded. | $550 | $6,595 |
| State Minimum Liability w/ Full Cov. w/$250 Ded. | $571 | $6,848 |
| 300/500/300 Full Cov. w/$1,500 Ded. | $594 | $7,123 |
| State Minimum Liability w/ Full Cov. w/$0 Ded. | $675 | $8,100 |
Finding affordable car insurance for your 16-year-old can feel overwhelming, but the sections below simplify the process. From comparing the cheapest providers to exploring teen driver discounts and coverage options, this guide helps you choose a policy that fits your budget.
Car insurance for 16-year-olds is expensive because teen drivers crash three times more often than drivers over 20, according to the Insurance Institute for Highway Safety. New drivers face their highest risk period during the first six months behind the wheel.
Understanding these risk factors helps parents choose coverage options and qualify for discounts that address specific concerns:
Leads to 38% of teen crashes, as new drivers struggle with hazard recognition while being overconfident in their abilities
Causes 31% of fatal teen crashes, with newly licensed drivers particularly prone to speed-related accidents
Male teens pay 15% to 20% higher premiums since they're 2.5 times more likely to speed and drive aggressively than females.
Results in 25% of teen crashes, including cell phone use during 11% of trips and passenger distractions in 15% of accidents
Parents who understand these risks can better use the money-saving strategies outlined in this guide and choose from our identified cheapest providers.
Rates decrease as teens gain experience. Many insurers offer 10% to 15% discounts after one claim-free year, with rates typically dropping 20% at age 18. Insurance companies continue lowering premiums as teens mature, with rates falling 8% at age 19 and another 6% at age 21.
Rates drop because of:
Older drivers tend to develop safer driving habits.
Insurers view long-term policyholders as less risky.
Drivers with better credit histories often qualify for lower rates.
Car insurance for 16-year-olds is expensive, but these 10 strategies can help reduce costs substantially. Many families can save hundreds or thousands of dollars annually by combining multiple approaches.
Adding a 16-year-old driver to an existing family policy can reduce premiums by up to 50% for male drivers.
Comparing quotes from various providers is one of the best ways to reduce car insurance expenses. Price differences between the most affordable and priciest policies for teens can reach up to 30%, according to MoneyGeek's research.
Most insurers offer 10% to 25% discounts for teens maintaining good grades (3.0 GPA or higher), saving $300 to $800 annually. Keep report cards and transcripts as proof, and notify your insurer when grades improve to qualify for savings.
Your teen's car model impacts insurance costs. Safe, reliable models with good crash test ratings cost much less to insure than sports cars or luxury vehicles. Honda Civic, Toyota Corolla and similar models consistently rank among the cheapest to insure. Avoid high-performance vehicles, which can double or triple insurance costs.
Optimize coverage by considering higher deductibles on comprehensive and collision coverage. Increasing deductibles from $500 to $1,000 can save 15% to 20% on premiums. For older vehicles worth less than $3,000 to $4,000, consider dropping comprehensive and collision coverage while maintaining high liability limits.
Usage-based programs monitor driving behavior and reward safe driving with discounts of 10% to 30%. These programs track factors like hard braking, rapid acceleration and night driving hours. Safe teen drivers can achieve substantial savings through responsible driving habits monitored by smartphone apps or plug-in devices.
Professional driver training beyond basic education can earn 5% to 15% insurance discounts while improving safety. AAA driver improvement courses and National Safety Council defensive driving programs are widely accepted. Online options provide convenience while meeting insurer requirements for discount eligibility.
Combine your auto insurance with homeowners or renters insurance to get multi-policy discounts of 10% to 25%, saving $400 to $1,200 annually. Adding inexpensive renters insurance often saves more on your auto policy than the renters policy costs.
Teens who drive fewer than 7,500 miles per year often qualify for low-mileage discounts, saving 5% to 15% on premiums. This discount works well for students who mainly drive to school and nearby activities. Track your mileage carefully and report it annually to keep these savings.
Modern vehicles with safety features like anti-theft systems, multiple airbags, and ABS brakes can reduce premiums by 5% to 20%. Anti-theft systems typically provide 5% to 10% discounts, while advanced safety technologies like automatic emergency braking may qualify for additional savings with participating insurers.
Finding affordable teen car insurance requires careful consideration of coverage options, timing and financial planning. These key factors help parents make informed decisions while securing the best possible rates.
Balance coverage needs with budget constraints when selecting coverage levels. Minimum coverage works for older vehicles worth under $4,000, while financed cars require full coverage with comprehensive and collision protection.
Insurance costs vary throughout your teen's driving journey. Expect highest rates during the first six months, with potential decreases after one year of claim-free driving and natural reductions at age milestones.
Prepare for monthly costs ranging from $200 to $500, depending on coverage choices, vehicle type and location. When calculating your budget, factor in potential savings from good student discounts, family policy additions and usage-based monitoring programs.
Higher liability limits protect family assets from teen driving accidents. Consider 250/500/100 minimum coverage in high-lawsuit states, with umbrella insurance providing additional protection for families with substantial assets.
Getting accurate quotes for your 16-year-old requires understanding key pricing factors: gender, driving record, vehicle type and location all greatly impact costs.
MoneyGeek's calculator tools help you compare coverage scenarios and verify quotes from our identified cheapest providers. Input your teen's information to see exact costs for adding them to your policy versus separate coverage.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jul 15, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 | 79 /of 100 | $133 | |
| 6 | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Car insurance for 16-year-olds is expensive, but teens can save by comparing quotes, staying on a family policy and using discounts. State Farm offers some of the most affordable rates for 16-year-old drivers nationally. However, shopping around is key to finding the best price.
Getting cheap car insurance for 16-year-olds starts with understanding the factors that drive up teen driver costs. Here are answers to frequently asked questions about finding affordable coverage for this age group:
National General offers the cheapest car insurance for 16-year-olds, based on recent surveys of average premiums for teen drivers. Other affordable providers include GEICO, AIG, AAA and Travelers, which offer competitive rates and discounts for young drivers.
The average cost of car insurance for a 16-year-old is $251 monthly, but rates vary depending on location, coverage and driving history.
Car insurance is typically more expensive for 16-year-old males because they're statistically more likely to be involved in accidents than their female peers. Insurers set higher premiums to reflect this increased risk.
Most 16-year-olds can't purchase car insurance because they're under 18. Instead, they must be added to a parent or guardian's policy. Some states allow special underwriting options if a teen owns a car under their name, but premiums are much higher.
The cheapest car insurance for teenagers is usually achieved by adding them to a parent's policy, which can cut costs by up to 50%. Additional savings are possible through good student discounts, multi-car discounts and safe driving programs.
Some of the best companies offering affordable car insurance for teens include National General, GEICO and AIG. These companies provide competitive teen rates and discounts to help families save on premiums.
Minimum coverage is the cheapest option, but many parents choose full coverage car insurance for better financial protection against accidents, theft and damage. Selecting a safe, affordable vehicle can help reduce full coverage premiums.
Insurance for 16-year-olds is costly because teen drivers are considered high-risk due to inexperience and higher accident rates. However, premiums usually drop by 8% at age 19 and 6% at age 21 as insurers view them as less risky.
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.
Statistical claims throughout this analysis are supported by authoritative sources including the Centers for Disease Control and Prevention (CDC), Insurance Institute for Highway Safety (IIHS) and National Highway Traffic Safety Administration (NHTSA) as of December 2024.
Sample Driver Profile
MoneyGeek calculates yearly car insurance policy estimates based on a policyholder with the following characteristics:
To determine which companies provide the most affordable policies, MoneyGeek compared rates for 16-year-old drivers across different states. We adjusted this profile to reflect the differences in age, location and driving behavior.
Coverage Levels and Deductibles Explained
A deductible is the amount you pay out of pocket before your insurance covers a claim. Many drivers benefit from full coverage insurance, including collision and comprehensive protection.
We used state-required limits for minimum coverage to determine 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:
Data Sources
All statistical information reflects the most recent available data as of December 2024.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
