Concord Group offers the cheapest minimum coverage car insurance for 16-year-old drivers among national providers, costing about $996 per year — 62% less than the average family policy rate. Auto-Owners and Encompass are also the best affordable options if they operate in your area.
Cheapest Car Insurance for 16-Year-Olds
Updated: February 20, 2025
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Key Takeaways
Concord Group, Auto-Owners, Encompass, State Farm and Nationwide are the cheapest car insurance companies for teen drivers.
The cheap car insurance premium for 16-year-olds can be as low as $83 per month for minimum coverage and $149 for full coverage. In some states, rates start at $59 per month.
The average cost of cheap car insurance for 16-year-olds is $2,640 per year for minimum coverage and $5,172 for full coverage. These rates apply to drivers with clean records and good credit. Your rate may vary based on your driving history and credit profile.
Cheapest Minimum Coverage Car Insurance for 16-Year-Olds
| Concord Group | $83 | $138 |
| Auto-Owners | $115 | $106 |
| Encompass | $143 | $78 |
| State Farm | $147 | $74 |
| Nationwide | $191 | $30 |
Cheapest Car Insurance for 16-Year-Olds
*Rates apply to a family policy covering 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, costing $1,788 per year when added to a family policy. However, the provider's services aren't available in all states. State Farm and Nationwide are the most affordable options nationwide.
| Concord Group | $149 | $282 |
| Auto-Owners | $251 | $180 |
| State Farm | $292 | $139 |
| Encompass | $334 | $97 |
| Nationwide | $335 | $96 |
*Rates apply to a family policy covering 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. The table below highlights each state's most affordable providers for this age group.
| Hawaii | State Farm | $59 |
| Mississippi | Progressive | $59 |
| Massachusetts | State Farm | $85 |
| Ohio | Nationwide | $87 |
| Maine | Concord Group | $88 |
| New Hampshire | Concord Group | $90 |
| Kansas | Nationwide | $92 |
| South Dakota | Allstate | $97 |
| Pennsylvania | Nationwide | $99 |
| North Dakota | Nationwide | $99 |
| North Carolina | State Farm | $100 |
| Wisconsin | Nationwide | $105 |
| Virginia | Nationwide | $106 |
| Missouri | GEICO | $108 |
| Idaho | State Farm | $110 |
| Vermont | Concord Group | $111 |
| Colorado | Kemper | $116 |
| Utah | Nationwide | $124 |
| New York | Kemper | $126 |
| Oregon | Nationwide | $131 |
| Connecticut | GEICO | $132 |
| Montana | Progressive | $133 |
| Wyoming | Allstate | $134 |
| Iowa | Allstate | $137 |
| Tennessee | Nationwide | $139 |
| Arkansas | Allstate | $141 |
| Indiana | Nationwide | $142 |
| Georgia | Allstate | $145 |
| West Virginia | Nationwide | $149 |
| Washington | Kemper | $149 |
| Maryland | Kemper | $152 |
| District of Columbia | GEICO | $153 |
| Minnesota | Nationwide | $154 |
| Alabama | Allstate | $155 |
| New Mexico | Nationwide | $160 |
| Oklahoma | Allstate | $162 |
| Michigan | GEICO | $163 |
| Nebraska | Allstate | $163 |
| Arizona | Travelers | $164 |
| Kentucky | Allstate | $165 |
| New Jersey | GEICO | $172 |
| Alaska | GEICO | $178 |
| Rhode Island | State Farm | $182 |
| Illinois | Progressive | $183 |
| Texas | State Farm | $189 |
| South Carolina | Auto-Owners | $213 |
| Nevada | Nationwide | $214 |
| Delaware | GEICO | $244 |
| California | State Farm | $245 |
| Florida | Nationwide | $272 |
| Louisiana | State Farm | $396 |
*Rates apply to 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 females of the same age due to a higher risk of accidents. The table below lists the cheapest national providers for males and females in this age group.
Cheapest Car Insurance for 16-Year-Old Female Drivers
For 16-year-old female drivers, Concord Group offers the most affordable national car insurance, saving about 62% monthly compared to the average cost for this age group. Female drivers generally pay less than males, as statistics show young females are involved in fewer accidents than young males.
| Concord Group | $79 | $129 | $142 | $264 |
| Auto-Owners | $102 | $107 | $225 | $181 |
| State Farm | $131 | $77 | $261 | $145 |
| Encompass | $143 | $66 | $334 | $72 |
| Nationwide | $176 | $33 | $304 | $102 |
*Rates apply to female drivers with clean driving records and good credit, insuring a 2012 Toyota Camry.
Cheapest Car Insurance for 16-Year-Old Male Drivers
Concord Group offers the lowest monthly rate among national insurers for 16-year-old male drivers on a family policy at $87. Auto-Owners and Encompass also provide affordable premiums for eligible drivers. Male drivers typically pay more than females due to a higher statistical risk of accidents.
| Concord Group | $87 | $146 | $155 | $301 |
| Auto-Owners | $127 | $106 | $277 | $179 |
| Encompass | $143 | $90 | $334 | $122 |
| State Farm | $163 | $70 | $323 | $133 |
| Nationwide | $205 | $28 | $366 | $91 |
*Rates apply to male drivers with clean driving records and good credit, insuring a 2012 Toyota Camry.
Cheapest Cars to Insure for 16-Year-Olds
When buying a car for a teen driver, it’s smart to add them to your policy with a vehicle that’s safe and affordable to insure. Below is a list of the most budget-friendly models to insure for 16-year-old drivers, organized by vehicle type.
Data filtered by:Results filtered by:
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Coverage:Full Coverage
| Subaru Forester | Compact SUV | State Farm | $3,415 |
| Subaru Outback | Sedan | State Farm | $3,452 |
| Nissan Frontier | Pickup Truck | State Farm | $3,578 |
| Honda Passport | SUV | State Farm | $3,667 |
| Honda Odyssey | Minivan | State Farm | $3,729 |
| MINI Cooper | Compact | State Farm | $3,857 |
| Acura MDX | Luxury SUV | State Farm | $3,989 |
| Chevy Bolt | Electric | State Farm | $4,000 |
| Ford Mustang Ecoboost | Sports Car | State Farm | $4,253 |
| Mercedes GLA 250 | Luxury Compact SUV | State Farm | $4,337 |
| BMW 3 Series | Luxury Sedan | State Farm | $4,683 |
| Tesla Model Y | Luxury Electric | State Farm | $5,027 |
| BMW 1 Series | Luxury Compact | State Farm | $5,068 |
| Porsche Taycan | Luxury Sports Car | GEICO | $6,114 |
*Rates apply to drivers with clean driving records and good credit.
Average Cost of Car Insurance for 16-Year-Olds
The average cost of cheap car insurance for 16-year-olds is $2,640 per year for minimum coverage and $5,172 per year for full coverage. These averages apply to drivers with clean records and good credit. Your rate may vary based on your driving history and credit profile.
WHY ARE CAR INSURANCE COSTS HIGHER FOR TEENAGERS?
Insurance companies view teen drivers as high-risk due to their lack of experience and higher accident rates. Male teens typically face higher premiums because they're statistically more likely to be involved in accidents.
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 |
*The coverage limits (e.g., 100/300/100) indicate bodily injury liability per person, bodily injury liability per accident and property damage liability per accident, respectively. Deductible amounts for collision and comprehensive coverage are shown after these limits.
Average Cost of Car Insurance for 16-Year-Olds by State
Average car insurance rates vary widely by state, ranging from $20 to $616 monthly. Crime rates, weather and population density influence these differences. The table below shows average rates by state to help you estimate costs in your area.
| Hawaii | $20 | $87 | $25 | $110 |
| Vermont | $30 | $146 | $58 | $272 |
| Wyoming | $31 | $197 | $56 | $323 |
| North Dakota | $34 | $155 | $93 | $399 |
| Idaho | $36 | $138 | $90 | $338 |
| Iowa | $38 | $167 | $83 | $363 |
| South Dakota | $38 | $196 | $86 | $433 |
| Tennessee | $44 | $192 | $103 | $438 |
| Maine | $45 | $166 | $78 | $289 |
| New Hampshire | $45 | $158 | $91 | $320 |
| Indiana | $46 | $178 | $102 | $377 |
| Kansas | $47 | $209 | $99 | $427 |
| Pennsylvania | $47 | $216 | $93 | $398 |
| Oklahoma | $48 | $207 | $133 | $551 |
| Wisconsin | $49 | $202 | $121 | $481 |
| Arkansas | $49 | $208 | $109 | $468 |
| Illinois | $50 | $200 | $108 | $425 |
| Nebraska | $51 | $240 | $113 | $494 |
| Minnesota | $51 | $213 | $98 | $399 |
| New Mexico | $52 | $218 | $114 | $470 |
| Montana | $52 | $241 | $110 | $508 |
| Mississippi | $54 | $222 | $111 | $460 |
| Oregon | $54 | $197 | $141 | $502 |
| Massachusetts | $55 | $210 | $94 | $366 |
| West Virginia | $56 | $225 | $120 | $479 |
| Alabama | $58 | $241 | $123 | $507 |
| Georgia | $60 | $234 | $133 | $518 |
| Alaska | $60 | $252 | $103 | $416 |
| North Carolina | $61 | $217 | $75 | $270 |
| Kentucky | $65 | $249 | $133 | $512 |
| Arizona | $65 | $252 | $132 | $502 |
| Colorado | $66 | $250 | $153 | $567 |
| Connecticut | $66 | $229 | $186 | $646 |
| District of Columbia | $67 | $255 | $174 | $654 |
| California | $69 | $314 | $82 | $371 |
| Washington | $70 | $235 | $134 | $444 |
| Maryland | $72 | $238 | $158 | $523 |
| Missouri | $72 | $308 | $156 | $653 |
| Texas | $78 | $307 | $147 | $593 |
| Virginia | $79 | $288 | $136 | $492 |
| Delaware | $79 | $280 | $245 | $864 |
| Rhode Island | $81 | $282 | $249 | $835 |
| Ohio | $84 | $281 | $152 | $511 |
| Utah | $87 | $314 | $184 | $656 |
| New York | $88 | $297 | $159 | $550 |
| South Carolina | $90 | $325 | $148 | $544 |
| Nevada | $99 | $372 | $214 | $794 |
| New Jersey | $102 | $390 | $176 | $673 |
| Florida | $107 | $473 | $203 | $910 |
| Michigan | $113 | $434 | $206 | $754 |
| Louisiana | $120 | $616 | $199 | $1,044 |
Why Car Insurance Is Expensive for 16-Year-Olds
Car insurance for 16-year-olds is expensive because they're classified as high-risk drivers. Teens aged 16 to 19 have higher accident and violation rates, with fatal crashes nearly three times more common than among older drivers. Risk factors include nighttime driving, speeding, distractions and failing to wear seat belts, especially among male drivers.
When Do Car Insurance Rates Drop for Teen Drivers?
As teens gain driving experience, insurance companies gradually lower their premiums. Rates typically drop by 8% at age 19 and another 6% at 21.
Why Do Rates Drop?
- Fewer accidents: Older drivers tend to develop safer driving habits.
- Longer insurance history: Insurers view long-term policyholders as less risky.
- Improved credit: Drivers with better credit histories often qualify for lower rates.
How to Save Money On Car Insurance for 16-Year-Olds
Teens have the highest car insurance premiums of any age group, but there are ways to lower these costs. Here are some recommended steps to find affordable coverage:
- 1
Stay on a parent's policy
Adding a 16-year-old driver to an existing family policy can reduce premiums by up to 50% for male drivers.
- 2
Shop around as much as possible
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.
- 3
Find discounts you qualify for
Sixteen-year-olds are often eligible for car insurance discounts, including those for good grades. Discounts for students, driver education courses for young drivers and usage-based insurance programs can help lower premiums by as much as 40%.
Additional discounts to consider include:
- Good student discount: For students with a B average (3.0 GPA) or higher
- Multi-car discount: Applies when a teen is added to a parent’s policy
- Teen driver and safe driving programs: Some insurers, like Progressive’s Snapshot Program, reward safe driving.
- Bad credit considerations: Companies like GEICO offer lower rates for teens with poor credit scores.
- 4
Choose a safe, older car
Choosing an affordable vehicle with a strong safety rating instead of a luxury car can significantly lower premiums. These vehicles usually cost less to repair and are considered lower risk by insurers.
- 5
Adjust your coverage amount
If you can cover the cost of replacing the car, opting for a minimum coverage 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.
KEY CONSIDERATIONS WHEN SHOPPING: EXPERT TIP
Obtaining quotes from multiple insurance companies is a good idea to see which is the best and cheapest for your profile. Also, ensure the company has optional coverages, such as roadside assistance and rental car coverage, for a teen driver or any driver on their policy.
— Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Cheap Car Insurance for 16-Year-Olds: Bottom Line
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.
Car Insurance for 16-Year-Olds: FAQ
Finding 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 answered some of the most common questions on this topic:
What is the cheapest insurance company for 16-year-olds?
Concord Group often offers the cheapest car insurance for 16-year-olds, based on recent surveys of average premiums for teen drivers. Other affordable providers include Auto-Owners, Encompass, State Farm and Nationwide, which offer competitive rates and discounts for young drivers.
How much is car insurance for a 16-year-old per month?
The average cost of car insurance for a 16-year-old is $220 monthly, but rates vary depending on location, coverage and driving history. Some insurers offer cheap car insurance for 16-year-olds as low as $20 per month when added to a family policy.
Is car insurance more expensive for 16-year-old males?
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.
How much does car insurance go up with a 16-year-old?
Adding a 16-year-old driver to a parent’s policy can increase rates by 65% to 135%, with an average increase of $299 per month. A standalone teen policy costs even more, averaging $468 per month. Parents can save by bundling policies and taking advantage of teen driver discounts.
Can a 16-year-old get their own car insurance policy?
Most 16-year-olds can't purchase their car insurance policy 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 in their name, but premiums are much higher.
What is the cheapest way for a 16-year-old to get car insurance?
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.
What is the best car insurance for 16-year-olds?
Some of the best companies offering affordable car insurance for teens include State Farm, GEICO, Auto-Owners and Progressive. They provide competitive teen rates and discounts to help families save on premiums.
Does a 16-year-old need full coverage car insurance?
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.
Why is car insurance so expensive for 16-year-olds?
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.
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 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:
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability per accident
Learn more about MoneyGeek's car insurance methodology.
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.
sources
- Centers for Disease Control and Prevention. "Risk Factors for Teen Drivers." Accessed February 20, 2025.