If you are beginning to drive, prepare to dig deep to pay for car insurance.
Newly licensed drivers are expensive to insure, says Carole Walker, executive director of the Rocky Mountain Insurance Information Association.
“New, young drivers pay the highest rates for car insurance because as a group, they are statistically more likely to cause a crash than older, more experienced drivers,” Walker says.
The risk of car crashes is highest among teens aged 16 to 19 than in any other age group, according to the Centers for Disease Control & Prevention. And per mile driven, teen drivers 16 to 19 are almost three times as likely to be in a fatal crash than drivers 20 or older.
It is safe to say that car insurance for a new driver will not be cheap. But there are still ways to save while ensuring you have sufficient coverage.
- The average car insurance rate for a 16-year-old on their own policy is $7,149 a year for full coverage.
- According to CarInsurance.com data, Nationwide, Geico, USAA and State Farm offer the most affordable car insurance rates for a 16-year-old male driver.
- Car insurance for a teen is way cheaper on a parent’s policy than on their own.
How much is car insurance for a 16-year-old?
The average car insurance rate for a 16-year-old on their own policy is $7,149 a year for full coverage. That rate is nearly $5,254 higher than the $1,895 average for a 40-year-old driver with full coverage.
Average car insurance rates for teens: 16-year-oldsHere’s the average annual car insurance rates for a 16-year-old on their own policy:
- State minimum coverage: $2,111
- Liability coverage with limits of 50/100/50: $2,527
- Full coverage: $7,149
The cost of car insurance for a 16-year-old driver will vary based upon factors like your coverage limits, state and car make/model. Although adding a teen to a parent’s policy is cheaper than having a separate policy, the cost of adding a teen driver can still be hundreds of dollars a month.
Teenagers can only get their own insurance policies if they’re emancipated adults or have reached the age of majority. Otherwise, they’ll have to be insured under a parent’s policy.
Check out our detailed guide on the average car insurance rates by age.
How much does car insurance cost for a 16-year-old female in each state?
Parents adding a teen female to their insurance policy can expect rates to increase significantly. However, teen females generally pay slightly lower premiums than teen males, as insurance companies consider young males a higher risk on the road.
The cost varies by state, insurer, and factors such as the vehicle being driven, driving record, and available discounts, like good student or driver safety programs. In the table below, see how much you can save by adding a 16-year-old female to your policy rather than her having her own policy.
| State | Teen female policy | Parent policy | Parent’s policy with a 16-year-old female |
|---|---|---|---|
| Alaska | $5,975 | $1,236 | $2,847 |
| Alabama | $7,038 | $1,464 | $2,796 |
| Arkansas | $8,250 | $1,436 | $2,998 |
| Arizona | $8,550 | $1,532 | $3,522 |
| California | $7,314 | $2,041 | $4,899 |
| Colorado | $7,244 | $2,048 | $3,645 |
| Connecticut | $9,444 | $1,383 | $2,770 |
| Washington, D.C. | $5,729 | $1,877 | $3,540 |
| Delaware | $9,377 | $1,636 | $3,123 |
| Florida | $8,288 | $2,993 | $5,742 |
| Georgia | $7,887 | $1,516 | $3,214 |
| Hawaii | $1,747 | $1,282 | $1,338 |
| Iowa | $5,824 | $1,156 | $2,263 |
| Idaho | $5,563 | $957 | $2,011 |
| Illinois | $5,982 | $1,309 | $2,977 |
| Indiana | $5,509 | $1,214 | $2,645 |
| Kansas | $6,303 | $1,422 | $2,766 |
| Kentucky | $7,102 | $1,743 | $3,502 |
| Louisiana | $9,760 | $2,991 | $6,815 |
| Massachusetts | $6,735 | $1,721 | $3,733 |
| Maryland | $6,169 | $1,923 | $3,555 |
| Maine | $4,551 | $996 | $2,476 |
| Michigan | $7,539 | $4,054 | $7,857 |
| Minnesota | $5,678 | $1,610 | $3,109 |
| Missouri | $7,211 | $2,134 | $4,657 |
| Mississippi | $7,693 | $1,342 | $2,715 |
| Montana | $8,335 | $1,782 | $3,584 |
| North Carolina | $5,374 | $1,369 | $3,329 |
| North Dakota | $6,310 | $1,154 | $2,088 |
| Nebraska | $6,847 | $1,798 | $3,110 |
| New Hampshire | $4,948 | $923 | $2,055 |
| New Jersey | $8,491 | $2,208 | $4,567 |
| New Mexico | $8,335 | $1,695 | $3,300 |
| Nevada | $9,929 | $2,287 | $4,533 |
| New York | $6,123 | $1,832 | $3,849 |
| Ohio | $6,087 | $1,065 | $2,352 |
| Oklahoma | $7,965 | $1,855 | $3,588 |
| Oregon | $7,523 | $1,430 | $2,921 |
| Pennsylvania | $7,071 | $1,245 | $2,767 |
| Rhode Island | $8,406 | $1,681 | $3,793 |
| South Carolina | $6,704 | $1,671 | $3,873 |
| South Dakota | $7,411 | $1,523 | $2,638 |
| Tennessee | $6,794 | $1,209 | $2,708 |
| Texas | $5,306 | $1,852 | $4,253 |
| Utah | $8,250 | $1,819 | $4,108 |
| Virginia | $5,417 | $1,133 | $2,850 |
| Vermont | $4,976 | $996 | $2,111 |
| Washington | $6,354 | $1,309 | $2,426 |
| Wisconsin | $7,066 | $1,511 | $3,462 |
| West Virginia | $7,289 | $1,386 | $3,223 |
| Wyoming | $5,408 | $1,677 | $2,866 |
How much does car insurance cost for a 16-year-old male in each state?
Sixteen-year-old males pay the highest car insurance rates among any age group. Like the parents of female teens, parents of male teens will pay significantly lower car insurance rates if they add a male teen driver to their policy.
See the annual car insurance rates for a 16-year-old male in every state in the table below.
| State | 16-year-old male policy | Parent policy | Parent’s policy with a teen male |
|---|---|---|---|
| Alaska | $6,969 | $1,236 | $3,117 |
| Alabama | $7,968 | $1,464 | $3,029 |
| Arkansas | $9,185 | $1,436 | $3,305 |
| Arizona | $9,885 | $1,532 | $4,024 |
| California | $7,334 | $2,041 | $4,899 |
| Colorado | $7,823 | $2,048 | $3,878 |
| Connecticut | $10,253 | $1,383 | $3,027 |
| Washington, D.C. | $7,553 | $1,877 | $4,028 |
| Delaware | $10,530 | $1,636 | $3,432 |
| Florida | $9,721 | $2,993 | $6,215 |
| Georgia | $8,642 | $1,516 | $3,635 |
| Hawaii | $1,747 | $1,282 | $1,338 |
| Iowa | $6,544 | $1,156 | $2,417 |
| Idaho | $6,499 | $957 | $2,201 |
| Illinois | $6,744 | $1,309 | $3,448 |
| Indiana | $6,512 | $1,214 | $2,783 |
| Kansas | $7,581 | $1,422 | $2,983 |
| Kentucky | $9,230 | $1,743 | $3,806 |
| Louisiana | $11,209 | $2,991 | $7,762 |
| Massachusetts | $7,302 | $1,721 | $3,733 |
| Maryland | $7,116 | $1,923 | $4,166 |
| Maine | $5,225 | $996 | $2,829 |
| Michigan | $7,539 | $4,054 | $7,857 |
| Minnesota | $6,918 | $1,610 | $3,317 |
| Missouri | $8,233 | $2,134 | $5,318 |
| Mississippi | $8,224 | $1,342 | $2,920 |
| Montana | $8,598 | $1,782 | $3,584 |
| North Carolina | $5,374 | $1,369 | $3,329 |
| North Dakota | $7,781 | $1,154 | $2,296 |
| Nebraska | $7,953 | $1,798 | $3,346 |
| New Hampshire | $5,519 | $923 | $2,221 |
| New Jersey | $9,114 | $2,208 | $5,126 |
| New Mexico | $9,028 | $1,695 | $3,560 |
| Nevada | $10,661 | $2,287 | $4,908 |
| New York | $6,987 | $1,832 | $4,378 |
| Ohio | $6,720 | $1,065 | $2,555 |
| Oklahoma | $9,274 | $1,855 | $4,413 |
| Oregon | $8,277 | $1,430 | $3,080 |
| Pennsylvania | $7,080 | $1,245 | $2,767 |
| Rhode Island | $9,504 | $1,681 | $4,278 |
| South Carolina | $7,707 | $1,671 | $4,030 |
| South Dakota | $8,412 | $1,523 | $2,959 |
| Tennessee | $8,327 | $1,209 | $2,945 |
| Texas | $5,862 | $1,852 | $4,650 |
| Utah | $9,326 | $1,819 | $4,508 |
| Virginia | $6,179 | $1,133 | $3,248 |
| Vermont | $5,834 | $996 | $2,332 |
| Washington | $6,947 | $1,309 | $2,561 |
| Wisconsin | $8,335 | $1,511 | $3,915 |
| West Virginia | $8,911 | $1,386 | $3,656 |
| Wyoming | $7,120 | $1,677 | $3,483 |
How much is car insurance for a 16-year-old vs. adding a teen to a parent’s policy?
Parents who add a female teen to their policy can save $2,857 per year and parents who add a male teen to their policy can save $3,341 over having teens insured on their own policies. See the annual rates for teens on their own and with parents in the table below.
| Gender | Annual teen policy | Annual parent’s policy with a 16-year-old | Savings |
|---|---|---|---|
| Female | $6,757 | $3,900 | $2,857 |
| Male | $7,541 | $4,200 | $3,341 |
Cheapest car insurance companies for a 16-year-old driver
Nationwide, Geico, StateFarm and Travelers are the cheapest insurers among insurance companies we analyzed for adding a female driver.
However, consumers must compare what coverages they get at different price points. Consider, for example, that an inexpensive policy may have high deductibles associated with collision coverage. In fact, collision might not be included in a bare-bones policy, yet is well worth purchasing.
How much is car insurance for a 16-year-old female, by company?
Car insurance for a 16-year-old female is cheapest from Nationwide, followed by Geico. Next comes USAA, but note that USAA only offers its services to military community members and their families. See rates for teen females by company in the table below.
| Company | Parent’s policy with a 16-year-old female |
|---|---|
| Nationwide | $2,552 |
| Geico | $2,787 |
| State Farm | $3,244 |
| Travelers | $3,986 |
| Progressive | $4,009 |
| Allstate | $4,336 |
| Farmers | $5,145 |
| USAA | $2,946 |
Note: USAA offers its services to military members and their families.
Cost of car insurance for a 16-year-old male, by company
Nationwide, Geico and USAA are the cheapest insurance companies if you add a 16-year-old male driver to your policy. See rates for 16-year-old males on a parent’s policy in the table below.
| Company | Parent’s policy with a 16-year-old male |
|---|---|
| Nationwide | $2,700 |
| Geico | $2,967 |
| State Farm | $3,560 |
| Progressive | $4,265 |
| Travelers | $4,519 |
| Allstate | $4,670 |
| Farmers | $5,279 |
| USAA | $3,138 |
Note: USAA offers its services to military members and their families.
Key terms: Auto insurance for teens
As you explore auto insurance on this page, you’ll come across key terms that might seem complex, but don’t worry—we’re here to help you understand them.
- Full coverage: A type of car insurance that typically includes liability, collision and comprehensive coverages, offering broader protection.
- State minimum limits: The lowest amount of insurance coverage required by law in a particular state for drivers.
- Liability limits: The maximum amount an insurance company will pay for damages or injuries you cause to others in an accident.
- Emancipated minor: An emancipated minor is a person younger than 18 who has been legally granted independence from their parents or guardians. This status allows them to enter into contracts, such as signing up for car insurance, without needing parental consent.
- Comprehensive insurance: It pays for damage to your car from non-collision events, such as theft, fire or natural disasters.
- Collision insurance: It pays for damage to your car resulting from a collision with another vehicle or object.
Cheapest car insurance companies for a 16-year-old female with her own policy
Nationwide offers the lowest rates for a 16-year-old female on her own policy, at an average annual cost of $5,642 a year, based on a data study by CarInsurance.com.In the table below, see how much car insurance costs for a 16-year-old female on her own policy.
| Company | Teen policy |
|---|---|
| Nationwide | $5,642 |
| State Farm | $5,784 |
| Travelers | $5,945 |
| Geico | $5,997 |
| Progressive | $8,967 |
| Allstate | $9,582 |
| Farmers | $11,164 |
| USAA | $6,099 |
Note: USAA offers its services to military members and their families.
Cheapest car insurance companies for a 16-year-old male with his own policy
For 16-year-old male drivers on their own policy, Nationwide has the cheapest car insurance rates, with an average cost of $6,545 annually. An adult must co-sign on a 16-year-old’s policy since teens can’t enter into legal contracts until their the age of majority in their state.
In the table below, see how much car insurance costs for a 16-year-old male on his own policy.
| Company | Teen policy |
|---|---|
| Nationwide | $6,545 |
| Geico | $6,752 |
| State Farm | $6,953 |
| Travelers | $6,968 |
| Progressive | $9,630 |
| Allstate | $10,337 |
| Farmers | $12,009 |
| USAA | $6,379 |
Note: USAA offers its services to military members and their families.
States that prohibit the use of gender to calculate car insurance ratesStates such as California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania have laws prohibiting gender as a factor in calculating car insurance rates. These states aim to create a more equitable pricing model by preventing gender-based discrimination, ensuring that premiums are determined by other factors such as driving history, vehicle type and location.
What’s the best car insurance for teen drivers?
Auto-Owners, State Farm, Geico and Nationwide offer some of the best car insurance options for teen drivers.
To find the ideal coverage for a teen driver, begin by comparing quotes from various insurers, paying attention to those that offer discounts for good grades, safe driving, and bundling policies. Focus on companies known for providing affordable rates and flexible coverage for young drivers. Additionally, review customer feedback and financial strength ratings to ensure dependable service and support.
The table below highlights the top insurers for teen drivers.
| Company | Market Share | J.D. Power Rating | NAIC Rating | AM Best Rating | Customer Satisfaction Score | Claims Handling | Trustworthiness | Plan to Renew | Likely to Recommend | Ease of Service |
|---|---|---|---|---|---|---|---|---|---|---|
| Amica | 0.44% | 833 | 0.61 | A+ | 3.76 | 3.67 | 3.76 | 4.6 | 4.2 | 3.88 |
| Nationwide | 1.71% | 809 | 0.64 | A | 4.06 | 3.87 | 3.79 | 4.19 | 4.35 | 4.11 |
| Mercury | 0.89% | 794 | 0.84 | A | 3.95 | 3.7 | 3.89 | 4.74 | 4.21 | 4.11 |
| CSAA Insurance Group (AAA) | 1.21% | 822 | 0.75 | A | 4.05 | 4 | 3.9 | 4.25 | 4.25 | 3.9 |
| Auto Club Group (AAA) | 0.71% | 800 | 0.77 | A+ | 3.75 | 4.14 | 3.91 | 4.38 | 4.53 | 4 |
| Allstate | 10.37% | 811 | 0.65 | A+ | 4.04 | 4.33 | 3.92 | 4.34 | 4.41 | 4.21 |
| Travelers | 2.08% | 810 | 0.49 | A++ | 4 | 4.2 | 3.93 | 4.52 | 4.29 | 4.19 |
| Geico | 12.31% | 821 | 0.91 | A++ | 4.07 | 4.12 | 3.95 | 4.54 | 4.37 | 4.14 |
| Progressive | 15.24% | 810 | 0.65 | A+ | 3.91 | 4.01 | 3.96 | 4.58 | 4.56 | 4.12 |
| Auto-Owners | 1.34% | 826 | 0.5 | A++ | 3.97 | 4.1 | 3.97 | 4.47 | 4.47 | 4.18 |
| Farmers | 4.18% | 814 | 0.8 | A | 4.12 | 4.19 | 3.99 | 4.49 | 4.49 | 3.94 |
| State Farm | 18.31% | 823 | 0.7 | A++ | 4.24 | 4.37 | 4.05 | 4.58 | 4.58 | 4.29 |
| American Family | 2.14% | 820 | 1.1 | A | 4.32 | 4.16 | 4.09 | 4.34 | 4.53 | 4.25 |
| Auto Club of Southern California (AAA) | 1.53% | 819 | 2.21 | A- | 4.15 | 4 | 4.1 | 4.75 | 4.5 | 4.3 |
| Erie | 1.34% | 845 | 0.61 | A+ | 4.43 | 3.91 | 4.24 | 5 | 5 | 4.43 |
How do you get cheaper insurance for 16-year-olds?
Despite the high rates you pay for young drivers, you can trim costs by asking your insurance company about discounts, shopping around and safe driving.
Car insurance discounts for 16-year-olds
Here are some discounts that teen drivers can work toward earning:
- Good student discount: Drivers who maintain a 3.0 or “B” average may get a discount of up to 14%.
- Driver training discount: Teen drivers who successfully complete a driver training program may be eligible for a 7% discount on their car insurance policy.
Shop around for insurance for 16-year-olds
Adding a teen to your auto insurance policy will make your premiums skyrocket. Your teen might be the best driver around, but until he or she proves that with years of accident-free driving, you can expect to pay more for insurance.
However, there are ways to lessen the pain. One key is to shop around and compare to find the best auto insurance rates. Rates will likely fall as the teen gains more experience.
CarInsurance.com has guides for car insurance for 17-year-olds, 18-year-olds and 19-year-olds that break down rates for car insurance for teens. Average car insurance rates decline when drivers hit the age of 26 significantly.
Keep a clean driving record
One of the most impactful ways to lower car insurance costs for your teen is to require that they maintain a clean driving record. Insurance companies already see teens as inexperienced, high-risk drivers, and traffic violations or accidents will not help to change that perspective.
Whether it is speeding, an accident, reckless driving or distracted driving, you will see an increase in insurance rates.
FAQs: How much is insurance for 16-year-olds?
Why is car insurance for 16-year-olds expensive?
Car insurance companies base rates on risk. They consider a person’s driving experience, claims history, location, the type of vehicle and other factors. A driver with a risky (or limited) driving record will pay more than a motorist without a claim.
In 2020, 2,738 teenagers (ages 13-19) died in the United States from crash injuries, according to the Insurance Institute for Highway Safety/Highway Loss Data Institute.
Must a 16-year-old buy full coverage insurance?
There is no law requiring teen drivers to have full coverage. However, if the car being driven is leased or financed, the lender will mandate that you have full coverage, including comprehensive and collision insurance.
To drive legally, you need state-required liability insurance, which pays for the damage and injuries of others in accidents you cause. However, because teens are inexperienced and, as a demographic, have more accidents than experienced drivers, it’s wise to have full coverage for the car your teen drives.
Does a 16-year-old need car insurance to get a license?
If you’re driving, most states require you to have minimum liability insurance. But a 16-year-old hoping to get his first license only has to show that his vehicle’s owner already has coverage. Teen drivers face driving restrictions before and after receiving a driver’s license. States have varying levels of Graduated Driving License (GDL) laws.
What are the rules for 16-year-old drivers?
Most states have laws restricting where and when 16-year-olds can drive. These stipulations are called Graduated Driver License (GDL) laws and apply to drivers younger than 18. GDL laws vary by state, with some states having stringent GLD laws and others having lenient ones. Over time, you “graduate” from a provisional or restricted license you got as a teen, to a standard license with no restrictions.
Can a 16-year-old have their own policy?
A teen can usually get car insurance, but as a minor, a parent or guardian must co-sign the policy, so a teen’s parents are financially responsible. A teen cannot buy or insure a car in most states independently.
Can a 16-year-old own a car?
A minor typically cannot own property in most states, so the minor’s parents would own that property until the child becomes an adult. In most states, a parent must cosign on a car loan and any other financial paperwork the dealership requires. So, while a juvenile can be a party to an auto purchase, the parent will be the legal owner.
Does a teen need car insurance to drive with a learner’s permit?
A novice driver needs insurance but not under his or her own policy. Usually, the policy of the vehicle’s owner (typically the parent or guardian who accompanies the teen while he or she learns) should be enough. Parents must add teen drivers to their policies once teens are licensed.
What are the best cars for a 16-year-old?
Your insurance company may trim your rate if you buy a top car for teens.
The Insurance Institute for Highway Safety (IIHS) offers some basics when looking for a vehicle:
- Vehicles with more powerful engines can tempt (young drivers) to test the limits, according to the IIHS.
- Get Electronic Stability Control (ESC) helps maintain control on curves and slippery roads.
- Consider cars with top IIHS and National Highway Traffic Safety Administration reviews.
Common mistakes parents make when insuring teen drivers
When insuring teen drivers, parents often make some common mistakes that can lead to higher premiums or insufficient coverage.
- Choosing the minimum coverage: To save on premiums, some parents opt for the minimum required coverage. However, this might leave the teen driver underinsured, especially in the case of serious accidents, where damages exceed the coverage limits.
- Ignoring discounts for good grades or driver’s education: Many insurance companies offer discounts for teens who maintain good grades or complete a driver’s education course. Parents often overlook these discounts, missing out on potential savings.
- Not comparing quotes from multiple insurers: Insurance rates for teen drivers can vary significantly between companies. Failing to shop around and compare quotes can lead to higher insurance premiums.
- Assuming all teen drivers are the same: Insurance companies assess risk differently for male and female teen drivers and may offer different rates based on their driving records, grades and other factors. Parents often assume rates are the same across the board and miss out on customized pricing.
- Forgetting to update the policy as the teen gains experience: Over time, as the teen gains driving experience and maintains a clean driving record, they may become eligible for lower premiums. Parents often forget to review and update the policy to reflect these changes.
Final thoughts: Car insurance for 16-year-olds
Being the parent of a teen driver is stressful and expensive. Adding your teen to your auto insurance policy is a great way to save money, even if getting them their own policy is tempting.
Ensure you are displaying good driving behavior and that teens follow GDL laws. Additionally, shop for car insurance at each renewal to ensure you get the best deal, which will help your teen understand the importance of driving safely.
Resources & Methodology
Sources
- Centers for Disease Control & Prevention. “Teen Drivers: Get the Facts.” Accessed October 2024.
- Governors Highway Safety Association. “Teen and Novice Drivers.” Accessed October 2024.
- Insurance Institute for Highway Safety, Highway Loss Data Institute. “Teenagers.” Accessed October 2024.
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates for 16-year-old male and female drivers. The hypothetical drivers have a 12-mile commute and 10,000 annual mileage for a Honda Accord LX. The data come from 170 national and regional auto insurance companies, 34,588 ZIP codes and 53,409,632 auto insurance quotes across all the states in the U.S.
The car insurance rate for the teen added to the parent’s policy includes coverage for one family car owned and insured by the parents. This data comprehensively compares car insurance costs for teenage drivers as independent policyholders and when added to a parent’s existing policy.
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Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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John McCormick
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John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
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Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
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Nupur Gambhir
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Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.