Getting your driver’s license is an exciting time for most 16-year-olds, but the massive impact these teens have on auto insurance rates is something many parents fear. A married couple with a 16-year-old driver on their policy will pay $3,836 per year, on average, for a full coverage policy. Since a 16-year-old will rarely qualify for their own policy, Bankrate understands that parents may need some guidance in fitting a newly licensed driver into their budgets. For this reason, Bankrate analyzed the top car insurance companies to help parents and guardians find the best car insurance for 16-year-olds.
how much does car insurance cost for a 16 year old?
Bankrate’s editorial team searched for the best car insurance for 16-year-olds by obtaining 2022 premium data from Quadrant Information Services for America’s Greatest Insurance. uu. insurers by market share. But because price isn’t the only factor to consider when shopping for an auto insurance policy, we also review coverage options, discounts, policy features, and third-party ratings for each company.
On average, the annual premium for a full coverage policy for a married couple is $1,668. after adding a 16-year-old, that total more than doubles. This couple can expect to pay an additional $2,168 a year to insure their newly graduated 16-year-old. this cost is added to the premium parents are already paying for two drivers and one vehicle, bringing the total premium to $3,836 per year. the additional cost does not include the purchase of a vehicle for your 16-year-old son to drive and does not take into account fines or accidents an inexperienced driver may incur behind the wheel. those negative rating factors would further increase the premium.
Adding an inexperienced driver to an auto insurance policy can cause your annual premiums to increase significantly. This is because auto insurance rates are determined based on risk. Young drivers, with their inexperience on the road, are statistically some of the riskiest drivers to insure. In fact, teen drivers are more likely to be in accidents than any other age group, according to the Centers for Disease Control and Prevention.
average cost of auto insurance for 16 year old men and women
In general, men pay more for car insurance than women. Statistics show that men are riskier drivers than women, typically causing more accidents and receiving more tickets. this, combined with the inexperience of young drivers, makes teenage males especially expensive to insure. These average annual rate increases are for young women and men with no speeding tickets or accidents.
average cost of auto insurance for a 16 year old by state
Each state and insurance company has insurance requirements and rates vary. The table below represents the difference between the average annual premium for 16-year-old males and females and the overall average increase you can expect to pay in each state. the rates represent how much it costs to add a teen to her parents’ policy.
some states, such as michigan and north carolina, do not use gender as a rating factor.
**These states do not allow insurers to rate consumers differently based on gender.
Six states don’t use gender to calculate premiums, which means the amount you pay for your 16-year-old must be the same. These states include California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania.
the best car insurance companies for a 16 year old driver
Some drivers look for the least expensive option when shopping for auto insurance. others are less concerned with price and want additional coverage options or 24/7 customer service. Because everyone is looking for different features included in their auto insurance policy, no one company is best for everyone.
Also, your idea of ​​the best car insurance company may change depending on your stage of life. some companies are better for seniors because of their coverage offerings and prices for older drivers. That same idea applies to important events like your child getting their driver’s license. If you’re looking for the best car insurance for 16 year old drivers, you may want to consider some of the providers below when getting car insurance quotes.
nationally
nationwide offers low average rates for 16 year old drivers and several discounts that can help policyholders lower their overall insurance premiums. Good student discounts are available for full-time students with a B average or better in school. Nationwide it also offers two usage-based telematics driving programs, smartride and smartmiles. You can also customize your auto insurance with elective coverage options like roadside assistance, gap coverage, and accident forgiveness. While nationally you have plenty of options for auto insurance, you also scored below average on the 2021 J.D. electric car claims satisfaction study.
more information: national insurance review
geiko
If you have a 16 year old driver to insure, Geico may be a provider worth considering. Although its premiums are already competitive for households that insure teen drivers, Geico also offers a number of discounts to help keep costs down. teens can take advantage of discounts like good student, driver’s education and seat belt use. however, geico has a limited number of local agents, which may not make it a good option for those who want personalized service.
more information: geico insurance review
united states
usaa could be a great option for military, veterans, or their immediate family members. The insurer features low average rates and excellent customer service ratings from J.D. power, although usaa is not eligible for official ranking due to its eligibility restrictions. Those who insure a teen driver can cut costs with driver training and good student discounts. You can sign up for USAA’s SafePilot program, which tracks your driving habits through telematics and allocates a discount accordingly. And if your teen decides to stay insured with USAA when she sets up her own policy, she could get a family discount or a discount for the duration of the membership.
more information: us insurance review. uu.
state farm
Since state farm is the nation’s largest auto insurance company by market share, it’s no surprise that it’s also a great option for your 16-year-old driver. State Farm offers two discounts for young drivers: Stay Away and Good Student. the good student discount is similar to others offered by the competition. Steer Clear, on the other hand, is a unique app-driven program that includes driver training classes, behind-the-wheel practice, and tutoring. along with the potential for premium savings, your teen will earn a certificate upon completion of the course.
more information: state agricultural insurance review
Cheapest car insurance for 16 year old drivers
Because your premium can be relatively expensive when you add a 16-year-old, you may be looking for affordable auto insurance for your teen driver. Please note that these rates represent the additional premium for adding a 16 year old to an existing policy and the full auto policy premium for three drivers and one vehicle on one policy.
Car insurance rates are personalized based on your qualifying factors, including the types of vehicles you own, the types of coverage you choose, and the driving history of each driver on your policy.
how to save on car insurance when insuring a 16 year old
Insuring a 16-year-old can come with a hefty price tag, but there are plenty of savings opportunities you can take advantage of when insuring your teen:
- Discounts for good students: Although the details vary between providers, your teen may qualify for a discount if they get good grades. she may want to contact her agent or insurance company for specific eligibility information.
- Telematics: Using a telematics device or app can save money and encourage your 16-year-old to practice safe driving habits.
- Usage-based discounts: Some companies offer a cheaper rate for people who drive fewer miles than average or low-mileage drivers. If you don’t plan on having your 16-year-old drive often, a pay-per-mile usage-based insurance policy may also be a good option.
- Choice of vehicle: The type of vehicle your 16-year-old drives can have a big impact on his auto insurance premium. If she decides to buy a vehicle for her teenage son, she may want to consider a 4-door sedan instead of a fast sporty coupe.
- safe driving agreement: A safe driving agreement may not save you money outright, but it can give parents peace of mind while their teens test the limits of their newfound freedom on the road . A safe driving agreement can encourage your teen to stay accident- and ticket-free.
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methodology
bankrate uses quadrant information services to analyze 2022 rates for all zip codes and carriers in all 50 states and washington, d.c. Rates quoted are based on married drivers 40 years of age, male and female, with a clean driving record, good credit, and the following total coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
Our base drivers own a 2020 Toyota Camry, commute five days a week, and drive 12,000 miles a year.
These are sample rates and should only be used for comparison purposes.
rates for a 16 year old driver were calculated by evaluating our married profile when adding a 16 year old driver to the policy.
The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania.
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frequently asked questions
