Cheapest Car Insurance for 16-Year-Olds

Auto-Owners and State Farm both provide competitive rates for 16-year-old drivers, but Auto-Owners is more affordable. Auto-Owners offers the cheapest minimum coverage at $272 per month. State Farm is the second most widely available and cheapest option, with minimum coverage rates averaging $299 monthly.

For full coverage, the difference is more pronounced. State Farm's $339 premium is $53 more than Auto-Owners' $286 monthly rate. USAA is the second cheapest overall at $276 per month, but its policies are only available to military members and their families.

*Rates are for a state-minimum, liability-only policy for male drivers with no credit score, driving a 2012 Toyota Camry.

Auto-Owners is the cheapest insurer for 16-year-old drivers, averaging $272 per month for minimum coverage. However, Auto-Owners is a regional insurer available in 26 states across the Midwest, South and East. This limited availability means it isn't an option for everyone.

State Farm is the next cheapest widely available national provider, offering competitive rates in almost every U.S. state. State Farm is the cheapest option in the most states on our list (10 states), with an average minimum premium of just $299 per month.

MoneyGeek's quote comparison table below can help you find the most affordable car insurance in your state without filling out multiple forms for each insurer.

*Rates are for a state-minimum, liability-only policy for male drivers with no credit score, driving a 2012 Toyota Camry.

For 16-year-old drivers, Amica offers the superior combination of quality and competitive rates, earning the top MoneyGeek Score of 95. It provides the best value for clean records, as well as for both at-fault and not-at-fault accidents.

Different scenarios favor other insurers. Travelers is the top-rated option for DUI and speeding infractions (MG 92-93), while State Farm is recommended for texting while driving violations.

Read our company reviews below to find out why we recommend each insurer and how they can help you find high-quality, low-cost coverage today.

The average cost to insure a 16-year-old male with basic liability coverage is about $251 per month, though your rate will vary. Many teens are added to a parent’s policy instead of buying their own, which usually lowers the total cost. 

Factors such as age, gender, driving history, location and even school performance can influence what you pay. Use the car insurance comparison tool below to check rates for 16-year-old drivers based on your details.

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 behind the wheel.

Key Risk Factors for Teen Drivers

• Inexperience: This accounts for 38% of teen crashes, driven by new drivers struggling with hazard recognition while feeling overly confident.
• Speeding: This causes 31% of fatal teen crashes, with newly licensed drivers highly susceptible to speed-related accidents.
• Gender Differences: Male teens pay 15% to 20% higher premiums because they are 2.5 times more likely to speed and drive aggressively than females.
• Distracted Driving: This accounts for 25% of teen crashes. Distractions include cell phone use during 11% of trips and passenger-related issues 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 start falling as teen drivers gain experience, a trend driven by three key factors: lower accident rates, longer insurance history, and improved credit.

After just one claim-free year, many insurers offer discounts ranging from 10% to 15%. Rates then continue to fall as the driver matures:

• Premiums usually drop 20% at age 18.
• Rates fall another 8% at age 19.
• A further 6% reduction is often seen at age 21.

Why Premiums Fall: Key Factors

Insurance companies lower premiums based on verifiable risk reduction:

• Fewer Accidents: Older drivers tend to develop safer driving habits and are statistically less likely to cause a claim.
• Longer Insurance History: Insurers view long-term policyholders as less risky, reflecting policy commitment and predictability.
• Improved Credit: Drivers with better credit histories often qualify for lower rates, as credit aligns with financial responsibility.

Finding affordable teen car insurance requires careful consideration of coverage options, timing and financial planning. These factors help parents make informed decisions while securing the best possible 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.

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 can often save more by comparing quotes from different companies.

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:

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.

Sample Driver and Data Collection

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. Our baseline driver profile represents a typical new teen driver:

• Vehicle: 2012 Toyota Camry LE (safe, affordable, commonly insured for teens)
• Driving record: Clean (no violations or accidents)
• Annual mileage: 12,000 miles
• Credit: No established credit score (realistic for 16-year-olds)

We adjusted this profile across six major insurance providers to compare rates for different scenarios—clean records, speeding tickets, at-fault accidents and DUIs. This shows parents what premiums look like both now and if their teen makes a mistake.

Coverage Analysis

Your deductible is what you pay before insurance covers the rest of a claim. We analyzed two coverage levels because families have different needs and budgets:

Minimum coverage rates use state-required liability limits only. This is the cheapest legal option but leaves your family paying out of pocket for your teen's car damage.

Full coverage rates include comprehensive and collision protection with a $1,000 deductible plus 100/300/100 liability limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability per accident

These higher limits protect your assets if your teen causes a serious accident. The $1,000 deductible balances affordable premiums with manageable out-of-pocket costs.

Quality Scoring

Beyond price, we evaluated insurers on customer satisfaction, financial strength, digital tools and claims handling. Our MoneyGeek Score (0-100) weighs these factors so you can identify companies offering both low rates and reliable service when your teen needs to file a claim.

Statistical claims throughout this analysis come from authoritative sources as of December 2024:

CDC: Teen driver fatality statistics and accident data
IIHS: Crash rates by age group and vehicle safety ratings
NHTSA: Teen accident causes and prevention research
Quadrant Information Services: Insurance rate data and premium calculations
State Insurance Departments: Coverage requirements and regulatory information