- How much is insurance for a 16-year-old?
- Why is car insurance for 16-year-olds so expensive?
- Average car insurance cost for 16-year-old drivers
- Average cost of car insurance for 16-year-olds by state
- Cheapest car insurance for a 16-year-old
- How much is car insurance for a 16-year-old male?
- How much is car insurance for a 16-year-old female?
- How much does it cost to add a 16-year-old to car insurance?
- Car insurance discounts for 16-year-old drivers
- Methodology:
- Related articles
- Frequently asked questions: Teen car insurance
How much is insurance for a 16-year-old?
Car insurance for a teenage driver is most expensive at age 16 with an average annual rate of $7,149 a year for full coverage insurance. That's about $596 a month. For a state minimum policy, the average annual rate is $2,111 a year or about $176 a month.
That's based on Insurance.com's analysis of data provided by Quadrant Data Services for 16-year-old drivers with a 2023 Honda Accord; an older vehicle will cost less to insure.
That same data analysis found that the cheapest full coverage car insurance for a teen driver is found at Nationwide, with an average annual rate of $6,094, which is about $508 a month.
In general, it's difficult for a minor to get an insurance policy alone, since they aren't old enough to legally sign a contract. In most cases, they'll be added to the policy of a parent or guardian, and that's actually the cheaper way to insure a teen, since they can take advantage of the discounts already on your policy.
Here's a look at the average cost of car insurance for a 16-year-old from top companies, based on a full coverage policy with 100/300/100 liability limits and $500 deductibles.
| Company | Annual rate | Monthly rate |
|---|---|---|
| Nationwide | $6,094 | $508 |
| USAA* | $6,239 | $520 |
| State Farm | $6,368 | $531 |
| Geico | $6,375 | $531 |
| Travelers | $6,455 | $538 |
| Progressive | $9,297 | $775 |
| Allstate | $9,968 | $831 |
| Farmers | $11,592 | $966 |
*USAA is only available to military members, veterans and their families.
Why is car insurance for 16-year-olds so expensive?
Because younger drivers lack experience on the road and have a higher rate of incidents and accidents than other age groups, they're seen as high risk. As a result, insurance companies charge teen drivers more since they're more likely to cost the insurance company money.
“Insurance industry actuarial studies show that 16-year-old drivers have the highest accident frequency rate of any age group,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute (Triple-I). “This is due to their lack of experience behind the wheel and a higher incidence of distracted driving – such as using cell phones and talking to friends while operating the vehicle – than more experienced drivers.”
While insurance for the teen driver in your life will cost money, there are savvy ways to put money back in your wallet and make sure your 16-year-old has sufficient coverage. Let's break down some price points.
Average car insurance cost for 16-year-old drivers
The average cost of car insurance for a 16-year-old driver is:
- State minimum coverage: $2,111
- Liability limits of 50/100/50: $2,527
- Full coverage: $7,149
It's important to note here that it doesn't cost much more to bump the liability limits above the state minimum (only about $16 a year), and it's a good idea considering the higher risk of an accident. Full coverage is expensive, so consider buying an older vehicle for your teen to drive that doesn't require comprehensive and collision coverage; just be sure you can afford to repair or replace the car if necessary.
Average cost of car insurance for 16-year-olds by state
Where you live has a major impact on what you pay for car insurance. Find your state below to see how much you can expect to pay for a teen car insurance policy, either on their own or added to your policy.
| State | 16-year old male | 16-year old female | Parent policy with teen added |
|---|---|---|---|
| Alaska | $6,969 | $5,975 | $2,982 |
| Alabama | $7,968 | $7,038 | $2,912 |
| Arkansas | $9,185 | $8,250 | $3,151 |
| Arizona | $9,885 | $8,550 | $3,773 |
| California | $7,334 | $7,314 | $4,899 |
| Colorado | $7,823 | $7,244 | $3,762 |
| Connecticut | $10,253 | $9,444 | $2,899 |
| Washington, D.C. | $7,553 | $5,729 | $3,784 |
| Delaware | $10,530 | $9,377 | $3,277 |
| Florida | $9,721 | $8,288 | $5,979 |
| Georgia | $8,642 | $7,887 | $3,424 |
| Hawaii | $1,747 | $1,747 | $1,338 |
| Iowa | $6,544 | $5,824 | $2,340 |
| Idaho | $6,499 | $5,563 | $2,106 |
| Illinois | $6,744 | $5,982 | $3,213 |
| Indiana | $6,512 | $5,509 | $2,714 |
| Kansas | $7,581 | $6,303 | $2,875 |
| Kentucky | $9,230 | $7,102 | $3,654 |
| Louisiana | $11,209 | $9,760 | $7,288 |
| Massachusetts | $7,302 | $6,735 | $3,733 |
| Maryland | $7,116 | $6,169 | $3,861 |
| Maine | $5,225 | $4,551 | $2,653 |
| Michigan | $7,539 | $7,539 | $7,857 |
| Minnesota | $6,918 | $5,678 | $3,213 |
| Missouri | $8,233 | $7,211 | $4,988 |
| Mississippi | $8,224 | $7,693 | $2,818 |
| Montana | $8,598 | $8,335 | $3,584 |
| North Carolina | $5,374 | $5,374 | $3,329 |
| North Dakota | $7,781 | $6,310 | $2,192 |
| Nebraska | $7,953 | $6,847 | $3,228 |
| New Hampshire | $5,519 | $4,948 | $2,138 |
| New Jersey | $9,114 | $8,491 | $4,846 |
| New Mexico | $9,028 | $8,335 | $3,430 |
| Nevada | $10,661 | $9,929 | $4,721 |
| New York | $6,987 | $6,123 | $4,113 |
| Ohio | $6,720 | $6,087 | $2,454 |
| Oklahoma | $9,274 | $7,965 | $4,000 |
| Oregon | $8,277 | $7,523 | $3,000 |
| Pennsylvania | $7,080 | $7,071 | $2,767 |
| Rhode Island | $9,504 | $8,406 | $4,035 |
| South Carolina | $7,707 | $6,704 | $3,951 |
| South Dakota | $8,412 | $7,411 | $2,798 |
| Tennessee | $8,327 | $6,794 | $2,827 |
| Texas | $5,862 | $5,306 | $4,451 |
| Utah | $9,326 | $8,250 | $4,308 |
| Virginia | $6,179 | $5,417 | $3,049 |
| Vermont | $5,834 | $4,976 | $2,222 |
| Washington | $6,947 | $6,354 | $2,493 |
| Wisconsin | $8,335 | $7,066 | $3,688 |
| West Virginia | $8,911 | $7,289 | $3,440 |
| Wyoming | $7,120 | $5,408 | $3,175 |
Cheapest car insurance for a 16-year-old
Shopping around to compare rates is the best way to get cheap car insurance for a 16-year-old driver. We've gathered rates in each state to identify the cheapest car insurance company there for insuring a newly licensed teen.
| State | Cheapest company | Average annual rate |
|---|---|---|
| Alaska | Western National Insurance | $5,327 |
| Alabama | Country Financial | $3,817 |
| Arkansas | Southern Farm Bureau | $4,332 |
| Arizona | Geico | $4,405 |
| California | Geico | $5,503 |
| Colorado | Southern Farm Bureau | $3,999 |
| Connecticut | State Farm | $6,259 |
| Washington, D.C. | Erie Insurance | $3,466 |
| Delaware | Nationwide | $5,065 |
| Florida | Geico | $6,516 |
| Georgia | Auto-Owners | $4,252 |
| Hawaii | Geico | $1,332 |
| Iowa | IMT Insurance | $3,350 |
| Idaho | Auto-Owners | $3,466 |
| Illinois | Erie Insurance | $3,568 |
| Indiana | Indiana Farmers Insurance | $3,226 |
| Kansas | Nationwide | $4,357 |
| Kentucky | Shelter Insurance | $6,035 |
| Louisiana | Southern Farm Bureau | $6,195 |
| Massachusetts | State Farm | $2,198 |
| Maryland | Erie Insurance | $4,755 |
| Maine | Auto-Owners | $2,010 |
| Michigan | Auto-Owners | $4,076 |
| Minnesota | Auto-Owners | $3,920 |
| Missouri | Missouri Farm Bureau | $4,616 |
| Mississippi | Southern Farm Bureau | $4,122 |
| Montana | Nationwide | $4,568 |
| North Carolina | Erie Insurance | $2,912 |
| North Dakota | American Family | $3,490 |
| Nebraska | Auto-Owners | $4,249 |
| New Hampshire | Auto-Owners | $2,100 |
| New Jersey | Geico | $3,414 |
| New Mexico | Central Insurance | $3,509 |
| Nevada | State Farm | $4,840 |
| New York | Progressive | $3,592 |
| Ohio | Auto-Owners | $3,522 |
| Oklahoma | AFR Insurance | $4,189 |
| Oregon | Country Financial | $3,042 |
| Pennsylvania | Travelers | $3,469 |
| Rhode Island | State Farm | $4,284 |
| South Carolina | Auto-Owners | $4,891 |
| South Dakota | Nationwide | $5,059 |
| Tennessee | Farm Bureau Insurance of Tennessee | $4,415 |
| Texas | Redpoint Insurance | $1,681 |
| Utah | Nationwide | $4,530 |
| Virginia | Virginia Farm Bureau | $2,778 |
| Vermont | Auto-Owners | $2,473 |
| Washington | PEMCO | $4,520 |
| Wisconsin | Erie Insurance | $3,990 |
| West Virginia | Nationwide | $4,412 |
| Wyoming | Farmers | $4,042 |
How much is car insurance for a 16-year-old male?
The national average cost for a male is $7,541 a year for a policy that includes comprehensive and collision coverage, and liability limits of 100/300/100.
That breaks down to $628 a month.
Here's a look at car insurance costs for 16-year-old male drivers by company, both on a solo policy and on a parent's policy.
| Company | 16-year-old male annual rate | Parent's policy with male teen added annual rate |
|---|---|---|
| USAA* | $6,379 | $3,138 |
| Nationwide | $6,545 | $2,700 |
| Progressive | $9,630 | $4,265 |
| Geico | $6,752 | $2,967 |
| State Farm | $6,953 | $3,560 |
| Travelers | $6,968 | $4,519 |
| Allstate | $10,337 | $4,670 |
| Farmers | $12,009 | $5,279 |
According to Triple-I, 16-year-old boys have a higher accident frequency than 16-year-old girls.
“This mirrors a similar trend of adult male drivers having a higher accident frequency rate compared to adult female drivers,” Friedlander says. “Thus, 16-year-old boys are considered a higher risk than 16-year-old girls and will pay more for auto insurance, on average.”
How much is car insurance for a 16-year-old female?
The average cost of car insurance for a 16-year-old female is $6,757 a year for a policy that includes comprehensive and collision coverage and liability limits of 100/300/100.
That's $563 a month.
On average, a 16-year-old female pays $784 less yearly than a male.
The chart below displays the average insurance costs for a 16-year-old female from top companies.
| Company | 16-year-old female annual rate | Parent's policy with female teen added annual rate |
|---|---|---|
| Nationwide | $5,642 | $2,552 |
| State Farm | $5,784 | $3,244 |
| Travelers | $5,945 | $3,986 |
| Geico | $5,997 | $2,787 |
| USAA | $6,099 | $2,946 |
| Progressive | $8,967 | $4,009 |
| Allstate | $9,582 | $4,336 |
| Farmers | $11,164 | $5,145 |
How much does it cost to add a 16-year-old to car insurance?
The cost of adding a teen to a parents’ policy varies greatly – from a little more than $1,000 to nearly $8,000 depending on where a family lives, the car they’re insuring and other factors.
But, as mentioned before, the easiest and cheapest route for parents of young drivers is to add a teen to their own policy. Below you can compare rates by state for teens on their own policy and on a parent's policy.
| State | Parent policy, no teen | Male teen added | Female teen added |
|---|---|---|---|
| Alaska | $1,236 | $3,117 | $2,847 |
| Alabama | $1,464 | $3,029 | $2,796 |
| Arkansas | $1,436 | $3,305 | $2,998 |
| Arizona | $1,532 | $4,024 | $3,522 |
| California | $2,041 | $4,899 | $4,899 |
| Colorado | $2,048 | $3,878 | $3,645 |
| Connecticut | $1,383 | $3,027 | $2,770 |
| Washington, D.C. | $1,877 | $4,028 | $3,540 |
| Delaware | $1,636 | $3,432 | $3,123 |
| Florida | $2,993 | $6,215 | $5,742 |
| Georgia | $1,516 | $3,635 | $3,214 |
| Hawaii | $1,282 | $1,338 | $1,338 |
| Iowa | $1,156 | $2,417 | $2,263 |
| Idaho | $957 | $2,201 | $2,011 |
| Illinois | $1,309 | $3,448 | $2,977 |
| Indiana | $1,214 | $2,783 | $2,645 |
| Kansas | $1,422 | $2,983 | $2,766 |
| Kentucky | $1,743 | $3,806 | $3,502 |
| Louisiana | $2,991 | $7,762 | $6,815 |
| Massachusetts | $1,721 | $3,733 | $3,733 |
| Maryland | $1,923 | $4,166 | $3,555 |
| Maine | $996 | $2,829 | $2,476 |
| Michigan | $4,054 | $7,857 | $7,857 |
| Minnesota | $1,610 | $3,317 | $3,109 |
| Missouri | $2,134 | $5,318 | $4,657 |
| Mississippi | $1,342 | $2,920 | $2,715 |
| Montana | $1,782 | $3,584 | $3,584 |
| North Carolina | $1,369 | $3,329 | $3,329 |
| North Dakota | $1,154 | $2,296 | $2,088 |
| Nebraska | $1,798 | $3,346 | $3,110 |
| New Hampshire | $923 | $2,221 | $2,055 |
| New Jersey | $2,208 | $5,126 | $4,567 |
| New Mexico | $1,695 | $3,560 | $3,300 |
| Nevada | $2,287 | $4,908 | $4,533 |
| New York | $1,832 | $4,378 | $3,849 |
| Ohio | $1,065 | $2,555 | $2,352 |
| Oklahoma | $1,855 | $4,413 | $3,588 |
| Oregon | $1,430 | $3,080 | $2,921 |
| Pennsylvania | $1,245 | $2,767 | $2,767 |
| Rhode Island | $1,681 | $4,278 | $3,793 |
| South Carolina | $1,671 | $4,030 | $3,873 |
| South Dakota | $1,523 | $2,959 | $2,638 |
| Tennessee | $1,209 | $2,945 | $2,708 |
| Texas | $1,852 | $4,650 | $4,253 |
| Utah | $1,819 | $4,508 | $4,108 |
| Virginia | $1,133 | $3,248 | $2,850 |
| Vermont | $996 | $2,332 | $2,111 |
| Washington | $1,309 | $2,561 | $2,426 |
| Wisconsin | $1,511 | $3,915 | $3,462 |
| West Virginia | $1,386 | $3,656 | $3,223 |
| Wyoming | $1,677 | $3,483 | $2,866 |
Remember: Insurance companies base the rates of premiums on a handful of factors – think experience and the policyholder’s driving record. Because a 16-year-old has neither, that means their rates will be higher.
Plus, teens wouldn't be eligible for specific discounts that a parent, who has a driving record, experience, and has carried insurance for several years, will be able to qualify for, such as a multi-vehicle, multi-policy, no-claims period discount and loyalty discounts.
Car insurance discounts for 16-year-old drivers
Your teenage driver may qualify for several different discounts, which can reduce the cost of your insurance premiums. These discounts include:
Good student discount
“Many auto insurers offer various discounts to help defer the high cost of coverage for 16-year-old drivers,” Friedlander says. “Most common discounts offered by national and regional insurers include a good student discount – meaning you must maintain a ‘B’ average or better in high school – and taking a certified driver education course before obtaining your driver’s license.”
Low mileage
The more time a teen spends driving a vehicle, the greater their chances of being involved in an auto accident or moving violation. That's why adolescents who drive a low amount of miles per year may be entitled to a discount. This is usually available to persons who travel fewer than 7,000 miles per year or less than 10 miles every weekday.
Usage-based insurance
Some insurers might offer a discount to policyholders with teens who install electronic monitoring devices to track the way teens drive in their cars.
“Usage-based telematics programs are also becoming more common for young teen drivers to help reduce insurance costs. This is where you allow the insurer to track your teen’s driving habits via a mobile app or installed device in the vehicle,” Friedlander says.
Methodology:
Insurance.com commissioned Quadrant Information Services in 2023 to field rates for auto insurance by ZIP code for 16-year-old and 40-year-old drivers. Coverage options included state minimum limits, 50/100/10 liability-only, and full coverage with 100/300/100 liability and $500 deductibles.
--Jackie Lam contributed to this article.
Sources:
Facts about teen driver crashes, injuries, and fatalities
Related articles
Insurance.com has prepared in-depth car insurance guides for drivers of different ages. You will learn how much you expect to pay for insurance based on your age and how you can save on premiums each year. Check out the guides below:
- Car insurance rates for 18-year-old drivers
- Car insurance rates for 20-year-old drivers
- Car insurance rates for 21-year-old drivers
- Car insurance rates for 22-year-old drivers
- Car insurance rates for 23-year-old drivers
- Car insurance rates for 24-year-old drivers
- Car insurance rates for 25-year-old drivers
Frequently asked questions: Teen car insurance
Can a 16-year-old get their own car insurance?
Yes and no. A 16-year-old can get an insurance policy, but will likely require a parent to co-sign on it since they are a minor. It will most likely be far more expensive than if they were added as a secondary driver to their parents' or guardians' family policy. Per Mark Friedlander with the Insurance Information Institute, a parent or guardian must co-sign, as a 16-year-old cannot sign a legally binding document like an insurance policy on their own.
How does car insurance for a 16-year-old compare to other ages?
Car insurance for a 16-year-old driver is typically significantly higher than for other ages. That's because they are considered high-risk, as they lack experience and a driving record, and data show that they are more likely to get involved in a car crash than any other age group.
Do car insurance rates go down after age 16?
As long as you maintain a clean driving record, the cost of premiums will usually go down after age 16. Typically, once a driver turns 25, there is a dramatic decrease in car insurance rates.
Does a 16-year-old have to have full coverage?
As laid out by state mandates, teens are required to have the minimum required coverage for car insurance in their states. The types of coverage and amounts vary according to where they live. Most states, however, require that insurance pays for damage or injuries to the other driver.
If a loan on the car still needs to be paid back, then the lender usually requires full coverage—collision, comprehensive and liability insurance.
How much is insurance on a sports car for a 16-year-old?
Car insurance rates depend on a handful of factors, including the type of car one drives. Usually, insuring a sports car is more expensive than other types of vehicles. That's because they're a higher risk to insure than say, a sedan or minivan.
Getting car insurance on a sports car for a teen can be a double-whammy. It's expensive to insure a sports car, and it's also more costly to insure a 16-year-old. So you can expect insurance on a sports car for a 16-year-old to be significantly more expensive.
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