The most thrilling rite of passage is getting a driver’s licence. It brings with it a sense of accomplishment and freedom. You will also have to pay high car insurance premiums. For full coverage, the average cost to add a 16 year old driver to their parent’s policy is $2,531 more per year.
Although 16-year-olds are the most expensive age to insure, Bankrate has found ways to help you find a lower-cost policy. From understanding what contributes to your teen’s rate to what discounts are offered for new drivers, our analysis of car insurance for 16-year-olds might help you feel more in control of your insurance.
What is the cost of car insurance for a 16 year old?
An average cost increase of adding a 16-year old to a parent’s policy to them is $2,531 each year. This is in addition the premium parents already pay for two drivers and one vehicle. The additional $211 per month does not include purchasing a vehicle for your 16-year-old to drive.
It can be costly to add an inexperienced driver on to your car insurance policy. Car insurance rates are determined by risk. Young drivers are the most risky drivers to insure because of their inexperience and lack of knowledge. In fact, teen drivers are more likely to get into accidents than any other age group, according to the Centers for Disease Control.
Average car insurance cost for males and women aged 16 years
Car insurance is generally more expensive for men than it is for women. Statistics show that males are riskier behind the wheel than females, causing more accidents and getting more tickets. Teen males are more expensive to insure due to their inexperience and reckless driving. These rates are higher for males younger than 18 and females without speeding tickets. Premiums could rise even further if there were no accidents or speeding tickets.
Average car insurance costs for 16-year-olds by state
Each state and insurance carrier has its own insurance requirements, and rates will vary because of this. Below is the table that shows the difference in the average premiums for males and women aged 16 years old and the overall average increase that you can expect to pay. These rates show how much it costs for teens to be added to their parents’ insurance.
Some states, such as North Carolina and Michigan, don’t use gender to rate applicants.
The best car insurance companies for 16-year old drivers
In most states, adding a teen driver will increase your premium. A teen getting their driver’s license can be an opportunity to shop your car insurance to understand if another insurer offers a more favorable rate.
The editorial team at Bankrate searched for the best car insurance to cover 16-year-olds. They obtained current premium data from Quadrant Info Services, the largest U.S. insurers based on market share. We also looked at coverages, discounts and third-party rankings as factors to consider when purchasing auto insurance policies.
These are the top car insurance companies for 16 year-olds.
All over the country
Nationwide offers low average rates to 16-year old drivers, and many discounts to lower policyholders’ overall insurance premiums. Full-time students who have a minimum of a B in school can get good student discounts. SmartRide and SmartMiles are two usage-based driving programs offered by Nationwide. You can personalize your car insurance by adding optional coverages like roadside assistance, gap coverage, and accident forgiveness.
Geico
Geico offers car insurance quotes for 16-year-old drivers. Geico offers discounts and competitive premiums for teens who are insured by their parents. Geico offers discounts for teens, such as good student, driver education, and seatbelt usage
USAA
USAA is a good choice for veterans, military personnel and their immediate families. J.D. has rated USAA as a great insurer with low average rates and outstanding customer service ratings. Power, but USAA is not eligible for official ranking because of its eligibility restrictions. A teen driver insurance policy can reduce the cost of driving and offer discounts for students. If your teen chooses to keep their USAA policy and establish their own policy, you could get a family discount or a length of membership discount.
Auto-Owners
Although Auto-Owners coverage is not available in all states, it is possible to obtain a quote if you are located in one of 26 states that has coverage. A good student discount, driving instruction discount or teen monitoring discount might help lower a family’s premium. Auto-Owners offers a variety of optional coverages that will allow you to tailor your policy to meet your needs. These include road trouble service coverage, and rental car coverage.
Car insurance for 16-year olds at the lowest price
Car insurance can be quite expensive for 16-year-olds, so you might be interested in the lowest premium impact. These rates are the added premium for adding a 16-year old to an existing auto policy. They do not reflect the total premium.
Car insurance rates can be personalized according to your rating factors. This includes the type of vehicle you have, the coverages that you select, and the driving history of each driver.
How to get car insurance for a 16-year old cheaper
Although adding a 16-year old driver to your car insurance policy can be costly, there are still ways to save money. There are discounts available and other cost-savings tips you can use to offset the increased expenses while your teen gains valuable driving experience.
Good student discounts
Your teen may be eligible for a good student discount if your auto insurance company offers it. To qualify for most insurers, teens must have a minimum GPA or letter grade average. Teens may also need to present a recent report card to prove their identity to the insurance company. The good student discount can help parents save on average 16% on their car insurance.
Mileage tracking or reduced mileage
Your auto insurance company may use mileage to determine your premium. If your teen drives less than a certain amount of miles each year, your premium could be lower. If your teen only drives to school every day, this can offer a significant discount. In addition, usage-based driving programs can also be a great way to save money and monitor your teen’s driving habits, like speeding and hard braking or acceleration.
Make a driving agreement
A parent-teen driving agreement is a way to help your teen drive safely and reduce the chance of them being in an accident. This free agreement from AAA can help you and your teen create a meaningful commitment to safety and consequences for failing to meet their goals. It is important that your teenager driver maintains a clean driving record to keep overall costs down.
How to find the best car insurance for 16 year-old drivers
Although car insurance for teens can be expensive, you can often find options to fit your budget without sacrificing coverage. It is a good idea to compare quotes from different insurance companies. This will help you compare the coverage options and discount options available in your area and determine the average rate for adding a 16 year old to your policy.
When looking for car insurance, you might also consider discounts, customer satisfaction scores, and financial strength. These factors can help you to find the right coverage for your needs.
Questions frequently asked
Which is the best auto insurance company?
The best car insurance company offers the coverages you need, has good customer satisfaction ratings and offers discounts to keep costs affordable. There is no one best car insurance company because everyone is unique. You can get quotes from multiple insurers to help you choose the right car insurance company for you and your family.
Do I need to adjust my coverage after adding a teen driver to my policy?
It depends on the type of coverage you have before adding your teenager driver. If you have liability only, it might be worth the added expense of having full coverage since teens are inexperienced and may get into more accidents. However, if you feel comfortable paying out of pocket for vehicle repairs or buying a new car if yours is totaled, you may want to consider liability-only coverage to save money. You may be able to make an informed decision by speaking to an insurance agent who can price your options.
What is the best insurance for 16-year-olds?
Car insurance costs vary depending on many factors. It is worth getting multiple quotes to compare your options if you want to find the best insurance coverage. To add your 16-year old driver to your car insurance policy, you can expect to pay $211 more per month.
My teen can have their own auto insurance policy
As minors, 16-year-old teens cannot have their own car insurance policies. They must be named as drivers on the policy of their guardian or parent. Drivers over 18 can buy their own insurance policies. It can be financially advantageous to remain on the policy of a parent or guardian until they are able to establish their own household.