Cheapest Car Insurance for 16-Year-Olds

The cheapest car insurance rates for 16-year-olds start at $196 monthly for minimum coverage. The most affordable companies are GEICO, Encompass and Amica.

Find out if you're overpaying for car insurance below.

Written by Mark Fitzpatrick

Updated: February 3, 2026

Advertising & Editorial Disclosure

Key Takeaways

GEICO is the cheapest car insurance for 16-year-olds, averaging $196 per month or $2,352 per year for minimum coverage.

Car insurance for 16-year-olds costs an average of $254 monthly for minimum coverage among top-rated insurers.

Car insurance is more expensive for 16-year-olds because of limited driving experience, no established credit score and higher risk of accidents.

What Is the Cheapest Car Insurance for 16-Year-Olds?

GEICO and Encompass both provide competitive rates for 16-year-old drivers, but GEICO is more affordable and easily available. It offers the cheapest minimum coverage at $196 per month. Encompass is the second cheapest option, with minimum coverage rates averaging $234 monthly.

For full coverage, GEICO maintains its affordability advantage at $456 monthly. Encompass charges $521 monthly for full coverage, while Amica costs $536 monthly but delivers superior service quality with a MoneyGeek Score of 95 out of 100.

Why You Can Trust MoneyGeek

We analyzed 4,284 quotes from six major insurance companies across 100 ZIP codes nationwide to determine the most affordable car insurance rates for 16-year-old drivers. All quotes reflect adding a 16-year-old to a family policy using state minimum coverage unless otherwise noted, calculated using a standardized profile of a 16-year-old driver with a clean record operating a 2012 Toyota Camry.

Mark Fitzpatrick, a licensed Property and Casualty Insurance Producer and MoneyGeek's Personal Finance Expert, with over five years of experience analyzing insurance markets and features, reviewed our methodology. We update it monthly, with our most recent analysis completed in December 2024.


GEICO	$196	$456	93
Encompass	$234	$521	93
Amica Mutual	$255	$536	95
National General	$260	$552	86
AAA	$260	$544	90

Cheapest Car Insurance for 16-Year-Olds by State

Car insurance rates for 16-year-olds vary by state, with minimum coverage ranging from $48 monthly in Wyoming to $294 monthly in Nevada. GEICO offers the most competitive rates nationwide, ranking as the cheapest provider in 22 states.

Regional insurers beat national carriers in specific states. Shelter leads in five states across the Midwest and South, while Farm Bureau offers the lowest rates in Colorado, Louisiana and South Carolina. Teen drivers in states with regional options should compare local and national insurers to find the best rate.


Alabama	AIG	$107	No Data
Alaska	Western National Insurance	$146	$375
Arizona	Geico	$174	$369
Arkansas	Shelter Insurance	$77	$182
California	Geico	$159	$356
Colorado	Farm Bureau	$139	$368
Connecticut	Geico	$180	$386
Delaware	Geico	$237	No Data
District of Columbia	Chubb	$86	$338
Florida	Geico	$224	No Data
Georgia	Geico	$230	No Data
Hawaii	Geico	$53	No Data
Idaho	Geico	$79	$177
Illinois	Erie Insurance	$145	No Data
Indiana	Geico	$104	No Data
Iowa	Progressive	$117	No Data
Kansas	Shelter Insurance	$90	$210
Kentucky	Shelter Insurance	$102	$217
Louisiana	Farm Bureau	$230	$455
Maine	MMG Insurance	$79	$180
Maryland	Geico	$195	$347
Massachusetts	Plymouth Rock Insurance	$145	$346
Michigan	AAA	$147	No Data
Minnesota	Westfield Insurance	$109	No Data
Mississippi	Shelter Insurance	$111	$245
Missouri	Shelter Insurance	$92	$213
Montana	Geico	$78	No Data
Nebraska	Farmers Mutual Ins Co of NE	$76	$204
Nevada	Geico	$294	No Data
New Hampshire	Vermont Mutual Insurance	$116	No Data
New Jersey	Geico	$192	No Data
New Mexico	Central Insurance	$137	No Data
New York	NYCM Insurance	$91	$266
North Carolina	State Farm	$111	No Data
North Dakota	North Star Insurance	$69	$172
Ohio	Ohio Mutual Insurance	$117	No Data
Oklahoma	American Farmers & Ranchers	$105	No Data
Oregon	Country Financial	$177	$324
Pennsylvania	Westfield Insurance	$84	No Data
Rhode Island	Amica	$174	$386
South Carolina	Farm Bureau	$203	$329
South Dakota	Farmers Mutual Ins Co of NE	$53	$166
Tennessee	Erie Insurance	$149	$358
Texas	State Farm	$208	$436
Utah	Geico	$183	No Data
Vermont	Co-operative Insurance	$61	$190
Virginia	Geico	$176	No Data
Washington	Pemco Insurance	$67	$124
West Virginia	Erie Insurance	$127	$322
Wisconsin	Geico	$77	$257
Wyoming	Geico	$48	$250

STATE-SPECIFIC CONSIDERATIONS:

Rate variation: Teen insurance rates vary by nearly 6x across states. Wyoming offers the lowest rates at $48 monthly, while Nevada has the highest at $294 monthly.
Graduated license laws: Stricter licensing programs like New Jersey's and California's cut teen crashes 20% to 40% through extended supervision.
Night driving restrictions: Most states ban unsupervised driving for newly licensed teens between 10 p.m. and 6 a.m.
Moving considerations: Notify your insurer within 30 days when you move to keep coverage and avoid premium increases.
Regional insurers: Local carriers often provide better rates than national companies. Check state-specific options like Shelter Insurance (Midwest/South), Farm Bureau (multiple states) and Farmers Mutual (Nebraska/South Dakota).
Moving considerations: Notify your insurer within 30 days when you move to keep coverage and avoid premium increases.

Best Car Insurance Rates for 16-Year-Olds

For 16-year-old drivers, Amica offers the superior combination of quality and competitive rates, earning the top MoneyGeek Score of 95 out of 100. The insurer provides competitive rates for clean driving records at $255 monthly and maintains strong pricing even after violations. Drivers with not-at-fault accidents pay $255 monthly, while those with at-fault accidents pay $305 monthly. Amica also offers competitive rates for speeding violations at $291 monthly.

Your teen's driving record affects which insurer offers the best value. Progressive provides the most competitive rates for serious violations like DUIs at $353 monthly. Encompass works best for texting while driving violations at $264 monthly.


At Fault Accident ($1000-$1999 Prop Dmg)	Amica Mutual	$305	$96
Clean	Amica Mutual	$255	$95
DUI - BAC >= .08	Progressive	$353	$95
Not At Fault Accident ($1000-$1999 Prop Dmg)	Amica Mutual	$255	$95
Speeding 11-15 MPH over limit	Amica Mutual	$291	$95
Texting While Driving	Encompass	$264	$93

Best Overall for 16-Year-Olds: Amica

Amica

Amica is the premium provider for drivers with a stable history. It consistently achieves the highest overall quality score in the industry. Amica provides superior value and customer service whether the driver has a Clean record (median $255 monthly, $3,060 annually) or is recovering from a Not At Fault Accident (median $255 monthly). Even after an At Fault Accident, Amica maintains its top service quality with competitive rates (median $305 monthly).

How to Get the Cheapest Car Insurance for 16-Year-Olds

Finding affordable teen car insurance takes careful consideration of coverage options, timing and financial planning. These factors help parents make informed decisions while getting the best rates. Car insurance for 16-year-olds is expensive, but these nine strategies cut costs substantially. Many families save hundreds or thousands yearly by combining multiple approaches.

1
Shop around for the cheapest rates
Compare quotes and save money. Price differences between cheapest and most expensive teen policies hit 30%. Get quotes from at least three insurers to find the best rate for your teen.
2
Take advantage of good student discounts
Teens maintaining a 3.0 GPA or higher save 10% to 25%, or $300 to $800 annually. Keep report cards as proof and notify your insurer when grades improve to qualify for savings.
3
Choose a safe, affordable vehicle
Safe models are the cheapest cars to insure for teenagers. The Honda Civic or Toyota Corolla costs significantly less to insure than sports cars or luxury vehicles, which can result in premiums that are double or triple the cost. Avoid high-performance vehicles that attract higher rates because of theft risk and repair costs.
4
Adjust coverage levels strategically
Increase deductibles from $500 to $1,000 to save 15% to 20%. For older vehicles worth under $3,000, consider dropping comprehensive and collision coverage while maintaining high liability limits.
5
Enroll in usage-based insurance programs
These programs monitor driving through smartphone apps or plug-in devices and reward safe driving with 10% to 30% discounts. Safe teen drivers benefit most from programs tracking hard braking, rapid acceleration and night driving hours.
6
Complete driver training courses
Professional driver training earns 5% to 15% discounts. AAA and National Safety Council programs are widely accepted. Online options available.
7
Bundle multiple policies
Parents adding their 16-year-old to their policy should combine auto with homeowners or renters for multi-policy discounts of 10% to 25% (saves $400 to $1,200 yearly). Adding cheap renters insurance often saves more on auto than the renters policy costs. Add your teen's vehicle as a second or third car and get multi-car discounts of 10% to 20%, which beats insuring separately.
8
Qualify for low-mileage discounts
Teens driving under 7,500 miles yearly save 5% to 15%. Low-mileage discounts work well for students who mostly drive to school and nearby activities.
9
Choose a vehicle with advanced safety features
Anti-theft systems, multiple airbags and ABS brakes cut premiums 5% to 20%. Advanced safety tech like automatic emergency braking may qualify for extra savings with participating insurers.

How Much Does Car Insurance Cost for 16-Year-Olds?

The average cost to insure a 16-year-old with minimum coverage is about $254 per month, though your rate will vary. Factors such as age, gender, driving history, location and even school performance influence what you pay. Teens under 18 can't legally purchase their own car insurance without a parent or guardian as a co-signer in most cases.

Data filtered by:


State Farm	$555	93
GEICO	$581	92
Amica Mutual	$589	97
National General	$624	87
Encompass	$643	92
Travelers	$683	93
AAA	$699	89
Progressive	$737	92

Why Is Car Insurance So Expensive for 16-Year-Olds?

Car insurance for a 16-year-old is expensive because teen drivers crash three times more often than drivers over 20. New drivers experience their highest risk during the first six months of driving. Understanding these risks helps you use the money-saving strategies in this guide and select from our most affordable providers.

Inexperience: Accounts for 38% of teen crashes. New drivers struggle with hazard recognition while feeling overly confident.

Speeding: Causes 31% of fatal teen crashes. Newly licensed drivers are highly susceptible to speed-related accidents.

Gender Differences: Male teens pay 15% to 20% higher premiums. They're 2.5 times more likely to speed and drive aggressively than females.

Distracted Driving: Accounts for 25% of teen crashes. Cell phones distract drivers during 11% of trips. Passengers contribute to 15% of accidents.

When Do Car Insurance Rates Drop for 16-Year-Olds?

Rates drop as teen drivers gain experience. Three key factors drive this: lower accident rates, longer insurance history and improved credit.

After one claim-free year, many insurers discount 10% to 15%. Rates keep falling as the driver matures:

Premiums drop 20% at age 18.
Rates fall another 8% at age 19.
Another 6% reduction at age 21.

Why Premiums Fall: Key Factors

Insurance companies cut premiums based on verified risk reduction:

Fewer Accidents: Older drivers develop safer habits and cause fewer claims statistically.
Longer Insurance History: Insurers see long-term policyholders as less risky because they show commitment and predictability.
Improved Credit: Drivers with better credit histories qualify for lower rates because credit aligns with financial responsibility.

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. National General offers some of the most affordable rates for 16-year-old drivers nationally. You save more by comparing quotes from different companies.

Cheapest Car Insurance for 16-Year-Olds Chart

Car Insurance for 16-Year-Olds: FAQ

Getting cheap car insurance for 16-year-olds starts with understanding the factors that drive up teen driver costs. We answer common questions about finding affordable coverage for this age group:

What is the cheapest insurance company for 16-year-olds?

GEICO offers the cheapest car insurance for 16-year-olds at $196 per month for minimum coverage. Other affordable providers include Encompass at $234 monthly and Amica at $255 monthly, 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 16-year-old drivers is $254 monthly for minimum coverage. Rates vary significantly by state, ranging from $48 monthly in Wyoming to $294 monthly in Nevada. Your location, driving history and coverage level all influence your final rate.

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

Car insurance is more expensive for 16-year-old boys because they're more likely to be in accidents than their female peers. Insurers set higher premiums to reflect this increased risk.

Can a 16-year-old get their own car insurance policy?

Most 16-year-olds can't purchase car insurance because they're under 18. 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.

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?

Amica offers the best car insurance for 16-year-olds with a MoneyGeek Score of 95, providing top quality and customer service at $255 monthly for minimum coverage. GEICO offers the cheapest rates at $196 monthly, while Encompass provides a strong balance of affordability and quality at $234 monthly. These companies give families multiple options based on budget and service priorities.

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 from inexperience and higher accident rates. Premiums drop by 8% at age 19 and 6% at age 21 as insurers view them as less risky.

Best Auto Insurance for 16-Year-Old Drivers: Our Methodology

Teen drivers crash three times more often than drivers over 20, making insurance shopping critical for families. We designed this methodology to help parents find legitimate savings while understanding exactly what coverage protects their 16-year-old behind the wheel.

We collected 4,284 price estimates from 100 ZIP codes across all 50 states, using data from state insurance departments and Quadrant Information Services. This sample size captures real regional price variations that affect what families actually pay.

Cheapest Insurance for a 16-Year-Old: Related Articles

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!

He writes about economics and insurance, breaking down complex topics so people know what they're buying.

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sources

Centers for Disease Control and Prevention. "Risk Factors for Teen Drivers." Accessed January 28, 2026.