The average cost to insure a 16-year-old is $813 per month for comprehensive coverage, based on our analysis of thousands of rates in nine states. On average, 16-year-old boys pay $63 more per month than girls.
cost of car insurance for a 16 year old
16-year-olds can expect to pay an average of $813 a month for car insurance. among the different insurers we looked at, rates ranged from $311 to $1,141 per month for full coverage, highlighting the importance of getting quotes from multiple insurers.
Reading: How much is teen insurance
find the cheapest insurers for young drivers in each state
erie offers the cheapest insurance for 16 year olds at a monthly rate of $311. Since erie is only available in 13 states, farmers is the cheapest option offered nationwide at $415 a month.
cost of car insurance for 16 year olds compared to other ages
Insuring a 16 year old driver can be very expensive. the cost of insuring a 16-year-old driver is more than double the average cost of insuring a 25-year-old driver. A 16-year-old can expect the cost of her insurance to drop by an average of 9% by the time she turns 17.
how do the rates differ between 16 year old male and female drivers?
The average cost of car insurance for 16-year-old female drivers is generally cheaper than the cost for male drivers. This is because young male drivers tend to exhibit more risky driving behavior compared to young female drivers, such as speeding or driving while intoxicated.
why is car insurance so expensive for 16 year olds?
Car insurance is much more expensive for 16-year-old drivers because they are more likely to be in accidents than older drivers. According to the Centers for Disease Control and Prevention (CDC), teen drivers are three times more likely than other drivers to be in a fatal crash.
Rates for 16-year-olds are also higher because insurance companies don’t have existing data on which to base their models. Auto insurance rates are based in part on your driving record, as someone who has driven accident-free for several years will pay less for insurance than someone who has caused multiple car accidents.
But for these teens, who typically have had their driver’s licenses for a year or less, there is very little data on which insurance companies can base their decision. this leads to higher costs for every teen driver, no matter how careful they are.
cheapest car insurance for 16 year olds by state
geico and state farm are often the cheapest insurers, with both companies being the cheapest option in three states. Below are the cheapest insurance companies for a 16-year-old in our nine sample states.
Do I have to add my teenager to my car insurance?
In most cases, you should add your 16-year-old son or daughter to your car insurance as soon as they get their license. Some states require it by law, and many insurance companies require it as well. Even if it’s not required, it’s a good idea to make sure everyone is covered by your auto insurance.
Usually you only need to add a driver to your policy once they have their license. If your 16-year-old hasn’t yet passed his license test, he usually doesn’t need to be listed on your policy.
rates for 16 year olds are cheaper with parents’ insurance
The most important way to save money on car insurance at age 16 is to add to your parent’s insurance policy instead of buying your own policy. A 16-year-old man could cut his rates by 45% if he joins his parents’ car insurance policy.
Some insurance companies require that you have a shared policy for all members of your family. Even if you can buy your own policy, you’ll likely need your parents to approve the settlement: An insurer won’t let you buy a policy on its own as a minor, since minors can’t legally sign contracts.
driving laws for 16 year olds
Many states have laws that limit how and when 16-year-olds can drive, even after they’ve passed their license tests. Teen drivers often have intermediate licenses, also called provisional or restricted licenses, which come with restrictions that don’t apply to adult drivers.
For example, 16-year-old drivers in Florida may not drive between the hours of 11 p.m. m. and 6 a.m. m. In California, 16-year-olds may not carry passengers under the age of 20 unless supervised by a driver 25 or older.
how to save on the cost of auto insurance for 16 year olds
Car insurance rates for 16-year-old drivers are very high, but there are ways to lower your monthly premium. The best thing to do is add to a family member’s policy instead of buying your own.
But there are other ways to get the cheapest car insurance possible for a 16-year-old.
check multiple insurance companies
each insurance company offers different prices, and the discrepancy is particularly high when it comes to teenagers: choosing one insurer or another can represent thousands of dollars saved over the course of a year.
however, the cheapest insurers for 16 year old drivers will vary by region. You should collect quotes from several different insurance companies to make sure you’re paying as little as possible.
look for discounts for 16 year old drivers
To offset the high cost of insurance for 16-year-olds, many insurance companies offer a variety of discounts geared specifically toward young drivers. Here are some common deductions to keep in mind.
buy a car that is cheaper to insure
If you or your parents are buying a new or used car to drive once you turn 16, an important consideration is how much it costs to insure it. the price of car insurance varies significantly depending on the car model; For example, in our study of the cheapest cars to insure, we found that a Honda CR-V, the car with the lowest monthly rates, is 33% cheaper to insure than a Ford Mustang.
Buying a fun or fast car like a mustang may sound appealing, but it’s likely to be much more expensive to buy, drive and insure than a car like a honda civic. Also, if you have an accident, a sports car will be more expensive to repair.
cancel comprehensive and collision coverage
One of the easiest ways for teens to lower their insurance bills is to reduce the amount of coverage they pay for. The most commonly eliminated parts of auto insurance are comprehensive and collision coverage, which pays to repair your own vehicle. Collision covers you if your car is damaged in a crash and no one else is at fault. Comprehensive coverage pays for damage caused by something other than a collision, like vandalism or theft.
Both coverages are optional unless you have an auto loan or lease. Dropping comprehensive and collision coverage is generally a better idea when your car is older and not worth as much money. This is because the maximum possible coverage payment, the replacement cost of your car, is often less than the cost of the coverage. however, you should only cancel these coverages if you can repair or replace your car without them.
how to get car insurance for a 16 year old
For 16-year-olds who are simply signing on to their parents’ policy, getting behind the wheel can be as simple as calling their insurance agent or visiting their insurer’s website.
however, adding a 16-year-old to a car insurance policy is an ideal time to check with other insurers to see how much they charge for their coverage and consider switching insurance companies to save money.
can a 16 year old get their own car insurance?
yes, a 16-year-old can purchase their own auto insurance policy. however, in addition to being more expensive, there will likely be an additional step in the process.
They will likely need a parent to approve or co-sign the agreement, since minors cannot sign legally binding contracts.
Our study used auto insurance quotes from thousands of zip codes in nine of the most populous states in the us. uu. Our sample drivers were 16-year-old boys and girls driving a 2015 Honda Civic Ex. All other parameters that affect auto insurance rates were held constant.
The full coverage policies we used had the following limits:
Our study included 29 insurance companies, but insurer rates were only added to our list of average prices and recommendations if their policies were available in at least three of the nine states.
valuepenguin analysis collected insurance rate data from quadrant information services. the rates used were publicly obtained from insurer filings. the rates mentioned in this study should be used for comparison purposes only, as your own quotes may be different.
See also: 10 Cheapest Cars to Insure in 2022