Car insurance for 16-year-olds

Getting a driver’s license at age 16 is considered a rite of passage for many teens. But parents may be surprised at how much their car insurance costs go up when they add a teen driver.

Insurance companies allow teens to practice driving with their learner’s permit without affecting insurance rates. It is not until they receive their driver’s license that they need to be qualified on a policy as a licensed driver. Since a 16-year-old driver is inexperienced, she is considered to be at high risk for accidents and fines, so the rate increase to insure them can be substantial.

Although rates will gradually decrease over time as newly licensed drivers gain driving experience, the average cost for a novice driver can be surprising.

How much does car insurance cost for a 16-year-old?

The average cost increase for adding a 16-year-old to their parents’ policy is $2,531 per year. This cost is on top of the premium parents are already paying for two drivers and one car.

The additional $211 per month does not include the purchase of a vehicle for your 16-year-old son to drive. This rate is basically for the risk of adding an inexperienced driver to your existing policy, which is how insurance companies determine their base rates for coverage.

Adding an inexperienced driver to an existing car insurance policy can be expensive. Consider getting a quote from your insurance company before your teen is licensed by it so he can prepare for increased rates and find potential ways to save on insurance costs.

Average car insurance costs for 16-year-old men and women

You may notice that the average annual premium listed below is cheaper for a 16-year-old female compared to a 16-year-old male. Statistics show that men are more at risk behind the wheel than women, causing more accidents and receiving more tickets. This, combined with the inexperience of young drivers, makes teenage males especially expensive to insure. These average rates are for young women and men with no speeding tickets or accidents, making the premiums even higher.

Cheapest car insurance companies for a 16 year old driver

Each insurance company has its own rating system, so the cost of adding a teen driver will be different from company to company. The most popular auto insurance companies in the table below were found to have the lowest premium increases when adding a 16-year-old to her parents’ policy.

These companies offer average annual premium increases that are substantially lower than the national average of $2,531 per year when a 16-year-old driver is added to a fully covered policy. Since teen drivers can’t be on their own policy if they’re under 18, parents considering a new insurance company for their teen driver will also need to switch their own coverage.

Age is just one factor considered when auto insurance companies calculate premiums, so the premium you pay may be higher or lower based on your specific details.

car insurance companyAverage annual premium for full coverage for men age 16Average annual premium for full coverage for women age 16Overall average annual total coverage premium

nationwide $1,478 $1,082 $1,241

erie insurance $1,274 $1,295 $1,285

The Hartford $1,698 $2,065 $1,864

Geico $1,970 $1,850 $1,897

nationwide

In addition to low average rates for 16-year-old drivers, Nationwide offers several discounts to help teens and parents lower their insurance premiums. Good student discounts are available for full-time students with a B average or better in school. Nationwide also offers two usage-based driving programs, SmartRide and SmartMiles. You can customize your auto insurance with elective coverages like roadside assistance, gap coverage, and accident forgiveness.

erie insurance

Although only available in certain states, if you have a 16-year-old driver, you may want to consider Erie Insurance in your search for auto insurance. In addition to providing standard auto insurance coverages, such as liability, collision, and comprehensive, Erie offers several unique coverages on auto insurance policies, such as pet coverage, personal articles coverage, and locksmith coverage.

Erie also offers a safe driving program for young drivers called teenSMART. . Erie-insured drivers can get a reduced price on the program, which has been shown to reduce accident frequency by about 30 percent. Teen drivers who complete the program may also be eligible for a reduced auto insurance premium.

The Hartford

The Hartford offers auto insurance to AARP members, and for those insuring drivers age 16 and older, it offers some of the most competitive rates. It also offers unique features that can help keep premiums low for households that insure teen drivers, like accident forgiveness. If all drivers listed on your policy have clean driving records for five years, the first at-fault loss will not be charged to your policy.

Geico

If you have a 16 year old driver to insure, you may want to consider getting a car insurance quote from Geico. 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.

How to save on car insurance when insuring a 16 year old

Although the cost of adding a 16-year-old driver to your car insurance can be significant, there are ways to save money. There are discounts available and other cost-saving tips you can use to offset increased expenses while your teen gains valuable driving experience.

Good discounts for students

Full-time teen students may be eligible for a nice student discount if your car insurance company offers it. Most companies require a certain GPA or letter grade point average to qualify, and teens may need to show a recent report card to the insurance company as proof. Parents can save an average of 16% on auto insurance costs with the Good Student discount.

Average full coverage premium without a good student discountAverage full coverage premium with good student discountPercentage difference

Male $2,783 $2,307 -17%

Woman $2,280 $1,931 -fifteen%

General $2,531 $2,119 -sixteen%

Reduced discounts on mileage or mileage tracking

If your insurance company uses mileage as part of its rating system, you may be able to lower your premium if you drive fewer than a certain number of miles per year. Additionally, usage-based driving programs can also be a great way to save money and monitor your teen’s driving habits, such as speeding and harsh braking or acceleration.

Create a driving agreement

Creating a parent-teen driving agreement can help your teen practice safe driving habits, reducing the chance of getting into an accident or receiving a ticket. This free agreement from AAA can help you and your teen create a meaningful commitment to safety and the consequences of not meeting your goals.

How to Get the Best Car Insurance for 16 Year Old Drivers

Although teen car insurance can be expensive, you can find options that fit your budget without sacrificing coverage. One of the best ways to do this is to shop around and get quotes from multiple insurance companies. This can help you determine the average rate in your area for adding a 16-year-old to your policy and will allow you to compare coverage options and discounts.

You can also consider customer satisfaction scores and financial strength when looking for coverage. By shopping around, you can find the best auto insurance company with affordable rates for you and your teen driver.

Frequent questions

What is the best car insurance company?

The best auto insurance company offers the coverages you need, has good customer satisfaction ratings, and offers discounts to keep costs affordable. The best insurance company will vary based on your specific situation. Getting multiple quotes from different companies can help you find the best auto insurance company for your home and insurance needs.

Do I need to adjust my coverage when adding a teen driver?

That depends on the type of coverage you have before you add your teen driver. If you only have liability, it might be worth the added expense of having comprehensive coverage, since teens are inexperienced and may have more accidents. However, if you’re comfortable paying out of pocket for car repairs or buying a new car if yours is totaled, you may want to consider liability-only coverage to save money. Talking to a licensed agent to price your options can help you decide.

What is the cheapest insurance for a 16 year old?

Car insurance costs vary based on a number of factors, so it’s important to get multiple quotes to compare if you’re looking for the cheapest insurance coverage. Expect to pay an average of $211 more per month to add your 16-year-old driver to your car insurance policy.

Methodology

Business Insurance uses Quadrant Information Services to analyze rates for all zip codes and carriers in all 50 states and Washington, DC Rates quoted are based on the additional cost of a 16-year-old male and female teen driver added to your teen driver 40 years old. Parent’s policy (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

To determine the minimum coverage limits, Aseguranzas para Negocios used minimum coverages that meet the requirements of each state. Our sample drivers own a 2019 Toyota Camry, commute five days a week, and drive 12,000 miles a year.

These are sample rates and should be used for comparison purposes only. Your quotes may be different