Cheap Car Insurance for 16-Year-Olds

The average car insurance cost for a 16-year-old on their own full coverage policy is $7,581 per year or $632 per month. This is about four times more expensive than the national average for middle-aged drivers, which is $2,008 per year.

Why Are Car Insurance Quotes for 16-Year-Olds So High?

Car insurance companies base customers’ rates on the risk of the driver filing a claim. Sixteen-year-olds don’t have much driving experience, and they’re more likely to get into accidents. Car insurance companies charge higher prices to offset this risk.

According to the AAA Foundation for Traffic Safety, in 2015, 16- and 17-year-olds were involved in almost twice as many accidents as 18- and 19-year-olds in the U.S. Also, 16- and 17-year-olds were involved in over four times as many accidents as drivers in the 30–39, 40–49 and 50–59 age groups. Below are the details from the foundation’s study.

Car Insurance Quotes by Age

Below, you can see that 16-year-olds pay about four times what 45-year-old drivers pay on average.

The cheapest car insurance for 16-year-olds will vary based on certain factors. Car insurance companies calculate premiums based on a driver’s age, location, driving history and credit score. Because teenagers lack driving experience or credit history, they can expect to face higher rates than other age groups.

The sections below provide cost estimates for the cheapest car insurance options for 16-year-old drivers.

Cheapest Car Insurance Companies for 16-Year-Olds

According to our estimates, Pekin Insurance is the cheapest regional insurance company for 16-year-olds. It offers average rates of $161 per month or $1,926 per year for 16-year-olds with individual insurance policies. Nationwide is the cheapest national provider, with average monthly rates of $403 and average annual rates of $4,835

Below, you can see how 11 popular car insurance companies rank on cost.

*Car insurance estimates are based on full-coverage policies with $50,000 bodily injury per person, $100,000 bodily injury per accident, $50,000 property damage per accident and a $500 deductible for collision coverage and comprehensive coverage.

Cheapest Car Insurance for 16-Year-Olds in Each State

In our analysis, we compared the top 10 providers in each state by age and found which ones are cheapest for 16-year-olds. You may want to consider getting a quote from one of the companies below depending on where you live.

10 Cheapest States for Car Insurance for 16-Year-Olds

You might not move just to save on car insurance, but it’s nice to know where the best rates for 16-year-olds can be found. Below are the 10 cheapest states for full coverage car insurance for 16-year-olds.

*Age doesn’t have a direct effect on car insurance prices in Hawaii.

10 Most Expensive States For Car Insurance for 16-Year-Olds

There are some states where individual full coverage car insurance policies for 16-year-olds have astronomical rates. Delaware, Rhode Island, and Louisiana top the list.

Our top five picks for the best car insurance for 16-year-olds offer below-average rates, plus discounts that apply to teens and families. 

With rates so high for young drivers, anything you can do to lower car insurance costs helps. Here are five tips to keep in mind.

Add Your 16-Year-old to the Family’s Insurance

The best way to save on insurance for a teenage driver is to add them to a parent’s policy. You can save hundreds of dollars per year doing this. You’ll still pay higher insurance premiums overall, but it won’t be as expensive as having the 16-year-old on their own policy.

Reduce Your Coverage Amounts

If you’re comfortable, you can lower your coverage amounts to save money on car insurance. You could even drop collision insurance and comprehensive insurance and just go with the minimum liability coverage required in your state. 

Be sure you can afford to fix your car if you or your teen damage it or if someone without enough insurance causes an accident, because you wouldn’t be covered in those situations. And if a car is financed, the lender will likely require you to have full coverage insurance.

Shop for the Best Car Insurance Discounts for 16-Year-olds

If you’re wondering how to save money on car insurance, discounts are a great option. Here are a few car insurance discounts to look for when adding a 16-year-old to an existing policy or starting an individual policy:

• Good student discount: Students can save money on their car insurance policies by maintaining good grades — usually at least a B average.
• Student away at school: Families with students who don’t take vehicles to college can get policy discounts. This usually requires the student to go to school at least 100 miles away from home. 
• Driver education discount: Some companies offer discounts for students who complete driver training courses. This can vary by state.
• Usage-based discount: Programs like Progressive’s Snapshot^®, State Farm’s Drive Safe & Save^TM  and Geico DriveEasy award discounts based on good driving habits. Teens who drive safely and don’t put many miles on their cars may save money through these programs.
• Multi-vehicle discount: Families with teens who drive their own vehicles can save a lot with this discount.

While it’s not a discount, consider a policy with accident forgiveness. A single car accident can raise rates by thousands of dollars per year for a teen. Some companies offer this add-on to keep the cost of car insurance the same after an at-fault accident.

Choose the Right Car

The type of car a16-year-old driver has can influence their rates. Generally speaking, car insurance rates are higher for luxury vehicles and sports cars. To save money, opt for a reliable and affordable car with good safety ratings.

Keep an Eye on Driving Habits

Even a small infraction like speeding can increase the cost of car insurance for teens, so the best thing they can do is keep clean driving records. Many providers offer safe driver discounts for those who do so.

In this article, we provided the cheapest car insurance rates for 16-year-olds and broke down costs by state. We also outlined how to shop for car insurance as well as average costs for the age group and some of the major factors that can affect car insurance premiums. 

While our recommendations for the best car insurance for 16-year-olds are worth considering, we recommend comparing at least three car insurance quotes when you shop.

Below are frequently asked questions about cheap car insurance for 16-year-olds.

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.