Updated: June 11, 2025
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Adding your teen to your family policy saves $2,000 to $4,800 annually compared to separate coverage.
Hawaii is the cheapest state for 16-year-old drivers to get car insurance, with minimum coverage starting at just $59 per month.
The average annual cost of car insurance for 16-year-olds is $2,640 for minimum coverage and $5,172 for full coverage, based on drivers with clean records and good credit.
The cheapest car insurance rates for 16-year-olds start at $83 monthly for minimum coverage and $149 for full coverage. In some states, monthly rates start at $20. The most affordable companies are Concord Group, Auto-Owners and State Farm.
Cheapest Car Insurance for 16-Year-Olds
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 also offer affordable options if they're available in your area.
| Concord Group | $83 | $138 |
| Auto-Owners | $115 | $106 |
| Encompass | $143 | $78 |
| State Farm | $147 | $74 |
| Nationwide | $191 | $30 |
*Rates apply to a family policy covering male and female drivers with clean records and good credit, insuring a 2012 Toyota Camry.
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, it isn'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.
Insurance companies charge 16-year-old male drivers higher rates than females due to crash statistics showing males face greater accident risks. Understanding these gender-based rate differences helps parents find the most affordable coverage options for their teen driver.
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 have 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.
Concord Group offers the lowest monthly rate among national insurers for 16-year-old male drivers on a family policy: $87. Auto-Owners and Encompass also provide affordable premiums for eligible drivers. Due to higher accident rates, male drivers typically pay more than females.
| 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.
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 full coverage.
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.
The average cost of 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.
Adding a 16-year-old driver to an existing family policy can reduce premiums compared to purchasing a separate teen policy. The table below shows the potential annual savings when choosing a family policy option.
Coverage Type | Family Policy Addition | Separate Teen Policy | Annual Savings |
|---|---|---|---|
Minimum Coverage | $1,200–2,400 | $2,400–4,800 | $1,200–2,400 |
Full Coverage | $2,400–4,800 | $4,800–9,600 | $2,400–4,800 |
*Separate policies make sense only when teens have poor driving records, or family policy discounts don't apply to your situation.
Below are the average expenses for adding a 16-year-old male and female driver to a family policy, categorized by coverage level.
| State Minimum - Liability Only | $233 | $208 |
| State Minimum - $500 Deductible | $443 | $394 |
| State Minimum - $1,500 Deductible | $385 | $344 |
| State Minimum - $1,000 Deductible | $401 | $357 |
| 300/500/300 - Liability Only | $341 | $305 |
| 300/500/300 - $500 Deductible | $546 | $485 |
| 300/500/300 - $1,500 Deductible | $488 | $434 |
| 300/500/300 - $1,000 Deductible | $188 | $170 |
| 100/300/100 - Liability Only | $291 | $260 |
| 100/300/100 - $500 Deductible | $487 | $462 |
| 100/300/100 - $1,500 Deductible | $488 | $434 |
| 100/300/100 - $1,000 Deductible | $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 monthly car insurance rates vary by state, ranging from $20 to $120 for minimum coverage and $87 to $1,044 for full coverage. 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 |
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.
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.
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.
The calculator shows deductible impacts on premiums, with full coverage costing $100 to $200 more monthly than minimum coverage. Compare scenarios to balance protection and affordability for your needs.
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:
Jun 13, 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.
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.
When buying a car for a teen driver, 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.
| 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.
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:
Concord Group 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.
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 car insurance for 16-year-olds as low as $20 per month when added to a family policy.
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.
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.
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 State Farm, GEICO, Auto-Owners and Progressive. 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.
