How much is car insurance for a 16-year-old?

Calculating how much insurance is for a 16-year-old is an unfortunate reality for parents with a teen driver in the house. Teens can save money on their insurance by taking advantage of discounts, shopping for quotes, and joining a parent’s existing policy. By getting quotes from as many companies as possible, parents with teens can find what the cheapest insurance for a 16 year old is with relative ease.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jan 9, 2022

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Things to Remember

  • Teens should expect to pay much higher rates because they are inexperienced drivers, and insurance companies predict that they are more likely to engage in risky behavior
  • A 16-year-old can save as much as 45% on their bill by joining a parent’s existing policy
  • Other ways for teens to save on their insurance include shopping for quotes, selecting a safe car, and taking advantage of discounts

Turning 16 is an exciting time in a person’s life. At 16, you’re on the verge of adulthood but without most of the responsibility. Most people get their first jobs at 16, begin dating, and purchase their first car.

One of the less glamorous aspects of growing up and attaining more freedom is car insurance. Auto insurance can be pricey for anyone, but it’s particularly expensive for young, inexperienced drivers.

However, there are ways for 16-year-olds to save money on their insurance, especially if a parent or guardian is willing to add them to an existing policy.

If you’re 16 (or you parent a teen this age) and considering purchasing a car, you’re probably wondering, How much is insurance for a 16 year-old? To find the best rates, you should compare as many companies as possible. Enter your ZIP code into our free tool today to discover what quotes might look like for you.

Insurance for 16-Year-Olds

Insurance for teens (especially 16-year-olds) is extremely expensive. Only high-risk drivers with speeding tickets, DUIs, or other traffic infractions will pay more.

That’s because teens are inexperienced drivers. Teen drivers engage in riskier behaviors on the road, and they don’t know how to handle situations that more experienced drivers can. Unfortunately, teens are also three times more likely than adults to become involved in a fatal accident.

New driver auto insurance is so expensive because companies use your driving history to establish your rates. Without a driving record, there’s nothing to assure the company that you won’t be a liability to them.

Price of Insurance for 16-Year-Olds

The price of insurance depends on many factors aside from the driver’s age and record. Insurance companies also consider the type of car you drive, where you live, how often you drive, and even your credit score.

While some companies are better for young drivers than others, you should expect to pay higher rates no matter which you choose. The good news is that your rates will decrease as you get older, if your driving record stays clean.

How much is the most affordable insurance for a 16-year-old?

Some companies are less expensive than others for teen insurance, and the best way to find them is to compare rates. Consider the average price of insurance for the top companies in America.

CompanyAverage monthly cost for 16-year-old
Erie$311
State Farm$577
GEICO$479
Allstate$1,141
Nationwide$539
Farmers$415
Progressive$772
USAA$423
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Smaller companies like Erie and Farmers tend to have lower rates, though their product availability is less thorough than that of larger companies. USAA offers low prices, but only military families are eligible for coverage.

How much is insurance for a 16-year-old male vs. female?

It’s an unfortunate truth of insurance — men pay more for coverage than women.

Insurance companies keep careful track of who makes claims. The data reveals that men in any age group are more likely than women to engage in reckless behaviors like speeding, road rage, and drunk driving.

Teen boys, in particular, are more likely to participate in reckless driving habits. So, how much more can teen boys expect to pay than girls?

AgeMonthly average for femalesMonthly average for males
16$782$845
17$705$768
18$586$647
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As you can see, there is a fairly significant difference between prices. However, that gap narrows as drivers get older. It never completely fades, but it becomes far less noticeable.

How much is insurance for a 16-year-old with a sports car?

Sports cars are always more expensive to insure than regular cars, and a teen with a sports car will be subject to a substantial expense.

Sports cars cost more to insure due to the nature of the car — you’re more inclined to speed in a vehicle built to go fast. Additionally, cops are more likely to ticket a sports car over a minivan or SUV.

Vehicle typeAverage monthly price for liabilityAverage monthly price for comprehensive
Coupes$179$363
SUVs$146$225
Sports cars$192$382
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No matter the driver’s age, you’ll pay more for the joy of driving a speedy car. Teens can save money on their insurance merely by selecting a safer vehicle. Mazda, Subaru, and Toyota have some of the best safety ratings for cars and will cost much less to insure.

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Ways to Save Money on Teen Car Insurance

Although teen insurance is expensive, there are plenty of ways to save money. However, the best way is to keep your driving record clean and not engage in risky driving behaviors.

Shop for Quotes

As stated before, insurance companies treat young drivers differently. Therefore, it’s to your advantage to seek out as many insurance quotes as possible.

Many companies offer similar coverage but for extremely different prices. Choosing the right insurance company can result in thousands of dollars worth of savings per year.

Take Advantage of Discounts

While insurance can be expensive, most companies offer discounts to help you save money. Teens are particularly suited to take advantage of discounts because there are several options for young people.

You’ll need to check with your insurance agent, but here are some of the more common discounts you should anticipate:

  • Good student – Full-time students in high school or college (typically under the age of 25) can earn this discount by maintaining a GPA of 3.0 or better. A 3.0 GPA means you earn at least a B in all your classes.
  • Full-time student – Some companies will give you a discount simply for being enrolled in school full-time.
  • Driver education – Many teens take driver’s education courses through school. Some states automatically allow for a reduction in your insurance rate after completing the course. In addition, many companies will give you a discount if you complete a class.
  • Tracking device – Tracking technology is becoming more popular with insurance companies, and if you agree to use their device, you can save money. Tracking can be as simple as downloading a mobile app, and the program keeps track of your driving habits.
  • Student away from home – Most 16-year-olds won’t be able to use this discount, but it’s good to keep in mind if you want to leave your hometown for college. If you attend school more than 100 miles from your home and leave your car at school, you’ll receive reduced rates.

There are other ways to save money on your insurance as a 16-year-old, but these are the most common and easiest strategies.

However, if a teen can avoid purchasing a new policy altogether and instead join a parent’s, they can see the price of their insurance decrease by about half.

Should you add a 16-year-old to an existing policy?

Parents should add a newly licensed driver to their insurance policy if they’ll be driving a family car. However, what about teens with their own cars?

Parents with an existing policy can help teens save a lot of money by adding them to their policy. Young drivers can save up to 45% by adding a car to an existing policy rather than buying their own.

Additionally, many insurance companies won’t sell a policy to a teen since minors can’t legally enter contracts. Unless the teen is emancipated, they’ll likely need a parent or guardian to sign off on a new policy.

Find the Best Insurance for Teens Today

Turning 16 and getting your first car is supposed to be an exciting time, but the startling price of insurance can dampen the mood. Fortunately, with a bit of effort, teens can find affordable insurance rates.

So, how much is insurance for a 16-year-old? Shopping around for rates will give you a better idea of what to expect. Enter your ZIP code into our free tool if you would like to determine what rates might look like for you.

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