Updated: November 1, 2024
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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.
Car InsuranceFor16-Year-OldsHow Much Is Car Insurance for a 16-Year-Old in 2024
The main reason for the high cost of car insurance for 16-year-olds is that they're seen as high-risk drivers. This is based on their greater likelihood of risky driving and higher accident rates.
Add them to a family policy as the best approach to cut car insurance costs for teens. Regularly compare rates and adjust coverage as the teen ages for additional savings.
Why Trust MoneyGeek? We collected our data from state insurance departments and Quadrant Information Services, analyzing 706,104 quotes from 67 companies across 897 ZIP codes.
These rates reflect the average cost of car insurance for 16-year-olds as of 2024.
The average cost of a full coverage car insurance policy for 16-year-old males and females is:
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.
| Female | $3,401 | $283 |
| Male | $3,732 | $311 |
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:
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.
| Nationwide | $2,718 | $226 |
| GEICO | $2,936 | $245 |
| State Farm | $3,055 | $255 |
| Allstate | $3,292 | $274 |
| Travelers | $3,436 | $286 |
| Progressive | $3,454 | $288 |
| Farmers | $3,562 | $297 |
On average, a 16-year-old on a full coverage policy will pay:
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.
| $3,567 | $10,626 | $7,059 |
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:
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.
| Alabama | $2,896 | 241 |
| Alaska | $3,027 | 252 |
| Arizona | $3,028 | 252 |
| Arkansas | $2,494 | 208 |
| California | $3,772 | 314 |
| Colorado | $2,994 | 250 |
| Connecticut | $2,746 | 229 |
| Delaware | $3,358 | 280 |
| District of Columbia | $3,056 | 255 |
| Florida | $5,673 | 473 |
| Georgia | $2,813 | 234 |
| Hawaii | $1,040 | 87 |
| Idaho | $1,660 | 138 |
| Illinois | $2,399 | 200 |
| Indiana | $2,133 | 178 |
| Iowa | $2,009 | 167 |
| Kansas | $2,506 | 209 |
| Kentucky | $2,985 | 249 |
| Louisiana | $7,393 | 616 |
| Maine | $1,996 | 166 |
| Maryland | $2,854 | 238 |
| Massachusetts | $2,520 | 210 |
| Michigan | $5,205 | 434 |
| Minnesota | $2,553 | 213 |
| Mississippi | $2,665 | 222 |
| Missouri | $3,696 | 308 |
| Montana | $2,895 | 241 |
| Nebraska | $2,883 | 240 |
| Nevada | $4,466 | 372 |
| New Hampshire | $1,898 | 158 |
| New Jersey | $4,683 | 390 |
| New Mexico | $2,615 | 218 |
| New York | $3,563 | 297 |
| North Carolina | $2,598 | 217 |
| North Dakota | $1,863 | 155 |
| Ohio | $3,372 | 281 |
| Oklahoma | $2,481 | 207 |
| Oregon | $2,361 | 197 |
| Pennsylvania | $2,589 | 216 |
| Rhode Island | $3,382 | 282 |
| South Carolina | $3,899 | 325 |
| South Dakota | $2,355 | 196 |
| Tennessee | $2,301 | 192 |
| Texas | $3,687 | 307 |
| Utah | $3,771 | 314 |
| Vermont | $1,754 | 146 |
| Virginia | $3,458 | 288 |
| Washington | $2,821 | 235 |
| West Virginia | $2,698 | 225 |
| Wisconsin | $2,423 | 202 |
| Wyoming | $2,366 | 197 |
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.
Shop around
To secure the lowest rates, shop around and compare insurance providers, focusing on those offering the most competitive rates for teen drivers before applying discounts. Make sure to get at least three quotes with identical coverage levels before deciding.
As your teen driver reaches adulthood and gains more road experience, watch for different insurers who might offer a better deal at lower rates tailored to your evolving needs.
Add a teen driver to the family policy
When your young driver gets their permit or driver's license, your insurer usually requires adding them to your car insurance policy. Finding an insurer covering a teen driver under their own policy is also often difficult and expensive.
Drive safe
Choosing a vehicle that's both affordable and equipped with safety features can lead to lower insurance rates, as these cars are typically less risky to insure.
Ask about all possible discounts
It's important to explore every car insurance discount for students, including those for good students, safe driving and specific programs for young drivers. Many companies also offer a "student away at school discount," which could apply to 16-year-olds who attend boarding school or are early college entrants.
Choose coverage wisely
Selecting the suitable types and amounts of coverage is crucial. Opting for higher deductibles and avoiding unnecessary extras can help reduce premiums. When the insurance cost outweighs the car's value, it might be time to drop collision and comprehensive coverage.
Build a safe driving record
Enrolling in and completing a certified driver's education course improves driving skills and can lead to insurance discounts. Additionally, maintaining a clean driving record free of accidents and traffic violations over time is essential for lowering insurance costs.
Consider a telematics program
Some insurers offer discounts based on driving behavior monitored through telematics programs. However, some usage-based programs can raise your rates if it detects poor driving habits.
Bundle policies
Combining car insurance with other insurance policies like homeowners or renters insurance under the same provider can offer savings. Insurers offer an average discount of 13% for home and auto bundles.
Drive less
Reducing the amount of driving can decrease the risk of accidents, potentially leading to lower insurance rates.
Review and update the policy regularly
Changing circumstances can affect insurance needs. Regular policy reviews ensure adequate coverage and the best possible rates.
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.
Insurance Company | Student Car Insurance Discounts |
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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.
On average, a 16-year-old female pays about $283 monthly for car insurance, while a male pays around $311. Adding your child to your car insurance is the best way to get cheaper rates for your teen driver.
For most 16-year-olds, getting their own car insurance policy isn't an option – minors are not legally allowed to purchase their own insurance policy. There are a few exceptions, like if they're emancipated or in the military. But usually, they'll need a parent or guardian to co-sign if they're going for a separate policy. More often than not, though, adding them to the family car insurance policy makes more sense – talk about more savings.
Yes, you can buy insurance for a 16-year-old driver, and it's usually done by adding them to an existing family car insurance policy. This is often the most practical and economical option, as individual policies for teen drivers can be significantly more expensive.
Yes, a driver with a learner's permit needs car insurance. As soon as they receive their permit, it's important to contact your insurer to add them to your existing family policy. This ensures they meet the state's minimum car insurance requirements, which apply to all drivers, regardless of age. Insurance companies typically require that all licensed drivers in a household, including those with a learner's permit, be listed on the policy.
About Mark Fitzpatrick
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.
