What does car insurance cost for a 16 year old

When your teen has just turned 16, there’s nothing more exciting and liberating for him than getting his eager paws on a driver’s license and being handed the keys for a spin in the family car. But before they can savor the sweet taste of freedom of being in the driver’s seat and driving on the open road, they’ll need car insurance.

but it’s not cheap. The average insurance rate in 2022 for a 16-year-old driver is more than $7,200 a year for full coverage.

Reading: What does car insurance cost for a 16 year old

Granted, the rate for a 16-year-old driver depends on the state they live in, the type of car insured, coverage limits, and whether the teen has their own policy or is added to a parent’s policy, but keep in mind that state laws vary when it comes to a teen’s ability to sign insurance.

If you’re a parent, you’re probably tempted to hide your car keys and have them stay with you indefinitely; it’s much less troublesome and less expensive that way.

But in this article, we’ll not only look at the different rates for 16-year-old drivers, we’ll also suggest ways to find affordable car insurance for teens.

how much does insurance cost for a 16 year old?

Make no mistake: car insurance for a teen driver comes at a premium. so how much is insurance for a 16 year old? the average rate is more than $7,200 a year for full coverage insurance for a teen with their own policy. this drops to over $600 per month. (yes, you read that right).

Please note that teens under the age of majority cannot obtain their own insurance policies unless they are emancipated adults. but it’s cheaper to include them in your policy anyway.

why is car insurance so expensive for 16 year olds?

Because younger drivers lack experience on the road and have a higher rate of incidents and accidents than other age groups, they are considered high risk. in turn, car insurance companies place them in a “high risk” category, which makes their premiums more expensive.

“insurance industry actuarial studies show that 16-year-old drivers have the highest crash frequency rate of any age group,” says mark friedlander, representative of the insurance information institute. “This is due to their lack of experience behind the wheel and a higher incidence of driving distractions, such as using cell phones and talking to friends while driving, than more experienced drivers.”

some dark facts: us. The Centers for Disease Control (CDC) has found that car accidents are the second leading cause of death among teens. In fact, approximately seven teens ages 13 to 19 die every day from car accident injuries.

Sure, you might be itching to keep your teen at home and wait until they’re 30 before handing over the car keys. But realistically, you’ll have to deal with the added costs of getting car insurance coverage for your mini-me.

While insurance for the rookie driver in your life will cost you money, there are smart ways to put money back in your wallet and make sure your 16-year-old has enough coverage. let’s discuss some price points.

average cost of auto insurance for 16 year old drivers

the average cost of auto insurance for a 16 year old with their own policy:

  • minimum state coverage: $2511
  • 50/100/50 liability limits: $3008
  • full coverage: $7625
  • Please note that this is just an average. The rate may vary depending on your status, whether your child gets his or her own policy or gets on a parent’s household policy.

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    Cost also varies by gender.

    car insurance for 16 year old men

    Curious about how much auto insurance costs per month for a 16 year old male? the national average cost for a man is $7,625 for a policy that includes comprehensive and collision coverage, and liability limits of 100/300/100 – $100,000 per person, up to $300,000 per accident for medical bills for people injured in an accident you cause, and $100,000 for property damage you cause.

    which breaks down to $635 a month.

    According to research from the Insurance Information Institute, 16-year-old boys have a higher frequency of accidents than 16-year-old girls.

    “This reflects a similar trend of male adult drivers having a higher crash frequency rate compared to female adult drivers,” says friedlander. “therefore, 16-year-old boys are considered higher risk than 16-year-old girls and, on average, will pay more for car insurance.”

    average cost of car insurance for a 16 year old woman

    The average cost of car insurance for a 16-year-old identifying as a female is around $6,782 for a policy that includes comprehensive and collision coverage and 100/300 liability limits/ 100.

    If paid monthly, that works out to $565 per month.

    Compared to their male counterparts, a 16-year-old woman pays $840 less per year than a man.

    The table below shows the average insurance costs for a 16-year-old female and 16-year-old male, broken down by state, compared to the cost of insurance if added to your parent’s policy.

    how to get the cheapest car insurance at age 16

    The best thing you can do to get affordable car insurance for your 16-year-old is to add them as a secondary driver to your existing policy. otherwise, expect to pay the wazoo of a teenager’s car insurance policy.

    Let’s take a look at the cheapest major insurance rates for insuring your teen:

    note: usaa is only available to members of the military, veterans, and their families.

    note: usaa is only available to members of the military, veterans, and their families.

    car insurance discounts for 16 year old drivers

    Your teen driver may qualify for several different discounts, which can lower the cost of your insurance premiums. These discounts include:

    good discount for students

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    “Many auto insurers offer various discounts to help defer the high cost of coverage for 16-year-old drivers,” says friedlander. “The most common discounts offered by national and regional insurers include a good student discount, which means you must maintain a ‘b’ average or better in high school, and take a certified driver’s education course before earning your driver’s license.”

    low mileage

    The more time a teen spends driving a vehicle, the greater their chances of being involved in a car accident or traffic violation. therefore, teens who drive a low number of miles per year may qualify for a discount. this is generally available to people who travel less than 7,000 miles per year or less than 10 miles every day of the week.


    Some insurers may offer a discount to policyholders with teens who install electronic monitoring devices to track how teens drive their cars.

    “Usage-based telematics programs are also becoming more common for young teen drivers to help lower insurance costs. this is where you allow the insurer to track your teen’s driving habits through a mobile app or in-vehicle device,” says friedlander.

    best car insurance for 16 year olds

    Because there is no one-size-fits-all auto insurance policy, let alone 16-year-olds, the best car insurance for a teen depends on what’s best for your situation and budget.

    To find out which car insurance is best, do some comparison shopping and look at the type of coverage, coverage limits, and discounts available from different insurers. Check out the cost difference between a separate policy for your teen versus adding it to your family policy.

    how much does it cost to add a 16 year old to car insurance?

    The cost of adding a teen to a parent’s policy varies widely—from just over $1,000 to over $8,000 depending on where the family lives, the car they’re insuring, and other factors.


    But, as mentioned above, the easiest and cheapest route for parents of young drivers is to add a teen to their own policy.

    Remember: Insurance companies base premium rates on a handful of factors – think about the policyholder’s experience and driving record. because a 16 year old has neither, that means his rates will be higher.

    In addition, teens would not be eligible for specific discounts that a parent, who has a driving record, experience, and has had insurance for multiple years, may qualify for, such as multiple vehicle, multiple policies, blackout period discount, claims and loyalty discounts.

    frequently asked questions


    quinstreet, publisher of insurance.com, commissioned Quadrant Information Services in 2022 for field rates for auto coverage data by zip code for drivers ages 16 and 40.

    -jackie lam contributed to this article.


    data on crashes, injuries and deaths of teen drivers

    See also: What Happens to Your Insurance Rates After a Suspended License?