State Farm offers the cheapest minimum liability car insurance among national providers for 16-year-old drivers at around $1,572 per year, 40% cheaper than the average premium rate on a family policy. Concord Group or Auto-Owners are the best affordable choices if you are in their service area.
Cheapest Car Insurance for 16-Year-Olds
Updated: November 19, 2024
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Key Takeaways
Concord Group, Auto-Owners, Encompass, State Farm and Nationwide are five of cheapest car insurance companies for 16-year-old drivers.
The cheapest car insurance premium for 16-year-olds can be as low as $83 per month for minimum coverage and $149 monthly for full coverage, but rates in some states are as low as $59 per month.
The average car insurance cost for 16-year-old drivers is $220 per month for minimum coverage and $431 for full coverage.
Cheapest Minimum Liability Car Insurance for 16-Year-Olds
| Concord Group | $83 | $138 |
| Auto-Owners Insurance Co | $115 | $106 |
| Encompass | $143 | $78 |
| State Farm | $147 | $74 |
| Nationwide | $191 | $30 |
Rates are for a family policy for both 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, which costs $1,788 per year when added to a family policy. However, the company's services are not available in all states. State Farm and Nationwide are the most affordable options nationwide.
| Concord Group | $149 | $282 |
| Auto-Owners Insurance Co | $251 | $180 |
| State Farm | $292 | $139 |
| Encompass | $334 | $97 |
| Nationwide | $335 | $96 |
Rates are for a family policy for both 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 you live in. Below, we've broken down the most affordable companies for this age group by state.
| 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 Insurance Co | $213 |
| Nevada | Nationwide | $214 |
| Delaware | GEICO | $244 |
| California | State Farm | $245 |
| Florida | Nationwide | $272 |
| Louisiana | State Farm | $396 |
Rates are for 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 female drivers of the same age because of increased accident risks. Below, you'll find the cheapest national providers for both male and female genders in this age group.
Cheapest Car Insurance for 16-Year-Old Female Drivers
For 16-year-old female teens, State Farm is the most affordable national car insurance provider, with savings of about 37% annually compared to the average cost for this age group. Female drivers generally have cheaper rates than their male counterparts. This is due to statistical data showing that young female drivers are involved in fewer accidents than young males.
| Concord Group | $79 | $129 | $142 | $264 |
| Auto-Owners Insurance Co | $102 | $107 | $225 | $181 |
| State Farm | $131 | $77 | $261 | $145 |
| Encompass | $143 | $66 | $334 | $72 |
| Nationwide | $176 | $33 | $304 | $102 |
Rates are for female drivers with clean driving records and good credit insuring a 2012 Toyota Camry.
Cheapest Car Insurance for 16-Year-Old Male Drivers
State Farm also offers the lowest monthly rate among national insurers for 16-year-old male drivers on a family policy, at $163. Concord Group and Auto-Owners offer affordable rates for eligible drivers. Male young drivers generally face higher costs than female drivers due to their statistically higher likelihood of being involved in accidents.
| Concord Group | $87 | $146 | $155 | $301 |
| Auto-Owners Insurance Co | $127 | $106 | $277 | $179 |
| Encompass | $143 | $90 | $334 | $122 |
| State Farm | $163 | $70 | $323 | $133 |
| Nationwide | $205 | $28 | $366 | $91 |
Rates are for male drivers with clean driving records and good credit insuring a 2012 Toyota Camry.
Cheapest Cars to Insure for 16-Year-Olds
When purchasing a new car for a teen driver, it's wise to include them on your policy with a vehicle that's both safe and cost-effective to insure. Below, you'll find a list of the most budget-friendly models by vehicle type to insure for 16-year-old drivers.
Data filtered by:Results filtered by:
Coverage:
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 are for drivers with clean driving records and good credit.
Average Cost of Car Insurance for 16-Year-Olds
The average car insurance cost for 16-year-olds is approximately $2,640 per year for minimum coverage and $5,172 per year for full coverage. However, this average only reflects drivers with clean records and good credit — your rate may differ based on your specific driving profile.
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 |
Liability limits expressed above (e.g., 100/300/100) refer to bodily injury liability per person, bodily injury liability per accident and property damage liability per accident, respectively. Numbers expressed after these limits are deductible amounts for both collision and comprehensive coverage.
Average Cost of Car Insurance for 16-Year-Olds by State
Average car insurance rates by state can vary widely, from $20 to $616 per month. These differences stem from factors specific to each location, including crime rates, weather conditions and population density. To help you gauge costs in your region, we've included average state rates in the table below.
| Oklahoma | $48 | $207 | $133 | $551 |
| North Carolina | $61 | $217 | $75 | $270 |
| Colorado | $66 | $250 | $153 | $567 |
| Mississippi | $54 | $222 | $111 | $460 |
| Florida | $107 | $473 | $203 | $910 |
| Vermont | $30 | $146 | $58 | $272 |
| Delaware | $79 | $280 | $245 | $864 |
| Nevada | $99 | $372 | $214 | $794 |
| Louisiana | $120 | $616 | $199 | $1,044 |
| New York | $88 | $297 | $159 | $550 |
| West Virginia | $56 | $225 | $120 | $479 |
| South Carolina | $90 | $325 | $148 | $544 |
| New Jersey | $102 | $390 | $176 | $673 |
| New Mexico | $52 | $218 | $114 | $470 |
| Hawaii | $20 | $87 | $25 | $110 |
| Arkansas | $49 | $208 | $109 | $468 |
| Missouri | $72 | $308 | $156 | $653 |
| Connecticut | $66 | $229 | $186 | $646 |
| South Dakota | $38 | $196 | $86 | $433 |
| District of Columbia | $67 | $255 | $174 | $654 |
| Iowa | $38 | $167 | $83 | $363 |
| Indiana | $46 | $178 | $102 | $377 |
| Massachusetts | $55 | $210 | $94 | $366 |
| Rhode Island | $81 | $282 | $249 | $835 |
| Ohio | $84 | $281 | $152 | $511 |
| Michigan | $113 | $434 | $206 | $754 |
| Minnesota | $51 | $213 | $98 | $399 |
| Pennsylvania | $47 | $216 | $93 | $398 |
| Washington | $70 | $235 | $134 | $444 |
| Wisconsin | $49 | $202 | $121 | $481 |
| Montana | $52 | $241 | $110 | $508 |
| Kentucky | $65 | $249 | $133 | $512 |
| Arizona | $65 | $252 | $132 | $502 |
| Illinois | $50 | $200 | $108 | $425 |
| Virginia | $79 | $288 | $136 | $492 |
| Maryland | $72 | $238 | $158 | $523 |
| Georgia | $60 | $234 | $133 | $518 |
| Wyoming | $31 | $197 | $56 | $323 |
| Utah | $87 | $314 | $184 | $656 |
| New Hampshire | $45 | $158 | $91 | $320 |
| North Dakota | $34 | $155 | $93 | $399 |
| Nebraska | $51 | $240 | $113 | $494 |
| Maine | $45 | $166 | $78 | $289 |
| California | $69 | $314 | $82 | $371 |
| Tennessee | $44 | $192 | $103 | $438 |
| Kansas | $47 | $209 | $99 | $427 |
| Texas | $78 | $307 | $147 | $593 |
| Oregon | $54 | $197 | $141 | $502 |
| Idaho | $36 | $138 | $90 | $338 |
| Alaska | $60 | $252 | $103 | $416 |
| Alabama | $58 | $241 | $123 | $507 |
Why Car Insurance Is Expensive for 16-Year-Olds
Car insurance for 16-year-olds comes at a high cost because they are classified as high-risk drivers. Teens, particularly those aged 16 to 19, experience higher accident and violation rates, with fatal crashes nearly three times more common than among older drivers. Contributing to these elevated risks are behaviors like nighttime driving, speeding, distractions and neglecting to wear seat belts, which are particularly prevalent among male drivers.
How to Save Money on Car Insurance for 16-Year-Olds
Teens face the highest car insurance premiums of any age group. Thankfully, there are strategies that teens and their families can use to reduce these costs. Below are our recommended steps to secure the most affordable coverage:
- 1
Stay on a parent's policy
Staying on a parent's policy can lead to considerably lower premiums, thanks to the parent's established insurance history and possible multi-car discounts. Insurers typically allow teens who live at home and use a family vehicle, rather than owning one themselves, to remain on a family policy.
- 2
Shop around as much as possible
Comparing quotes from various auto insurance providers is one of the best ways to cut down on car insurance expenses. According to MoneyGeek's research, price differences between the most affordable and priciest policies for teens can reach up to 30%.
- 3
Find discounts you qualify for
Sixteen-year-olds are often eligible for various car insurance discounts. Discounts for students, driver education courses for young drivers and usage-based insurance programs can help lower premiums by as much as 40%.
- 4
Choose a safe, older car
Choosing a more affordable vehicle with a strong safety rating can greatly reduce insurance premiums, as these cars typically cost less to repair and are viewed as lower risk by insurers.
- 5
Adjust your coverage amount
If you're able to cover the cost of replacing the car yourself, opting for a liability-only 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 comes out as the best and cheapest for your specific profile. You also want to ensure the company has optional coverages that are good for a teen driver or any driver to have on their policy. They include roadside assistance and rental car coverage.
— Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Cheap Car Insurance for 16-Year-Olds: Bottom Line
Car insurance for 16-year-olds can be costly, but teens and their families can find budget-friendly options by comparing quotes, staying on a family policy and taking advantage of available discounts. Among national providers, State Farm offers some of the most affordable rates for 16-year-old drivers. However, shopping around is crucial for finding the best possible price.
Car Insurance for 16-Year-Olds: FAQ
Securing 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 compiled answers to some of the most frequently asked questions on this topic:
What is the cheapest car insurance for an 16-year-old?
State Farm is often the most affordable car insurance provider for 16-year-olds nationwide. On average, minimum coverage policies cost approximately $147 per month, while full coverage is about $292 monthly when added to a family plan.
How much is car insurance for an 16-year-old per month?
On average, car insurance for 16-year-olds is approximately $220 per month for minimum coverage and $431 per month for full coverage. However, these costs can differ significantly by state, with monthly rates ranging from as low as $20 to as high as $616. It’s important to note that these averages apply to drivers on a family policy with clean driving records and good credit.
Why is car insurance expensive for 16-year-old drivers?
Car insurance tends to be costly for 16-year-olds because they are considered higher risk due to their limited driving experience. This inexperience can lead to a higher likelihood of accidents, prompting insurers to charge higher premiums to account for potential claims.
Is car insurance more expensive for 16-year-old males?
Yes, car insurance is generally more expensive for 16-year-old males. Statistics show they are more likely to be involved in accidents compared to their female peers, prompting insurers to set higher premiums to account for this increased risk.
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 made adjustments to this profile to reflect the differences in age, location and driving behavior.
Coverage Levels and Deductibles Explained
A deductible is the money you have to pay out of your own pocket before your insurance company will pay for your claim. Most drivers would benefit from purchasing full coverage vehicle insurance, which covers both collision and comprehensive damage.
For minimum liability coverages, we used state-required limits to judge 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 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability per accident
Learn more about MoneyGeek's car insurance methodology.
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.
sources
- AAA Foundation for Traffic Safety. "Rates of Motor Vehicle Crashes, Injuries and Deaths in Relation to Driver Age, United States, 2014–2015." Accessed November 19, 2024.
- Insurance Institute for Highway Safety. "Fatality Facts 2018: Teenagers." Accessed November 19, 2024.