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A Complete Overview of Car Insurance for 16-Year-Old Drivers

Insuring a 16-year-old can be an expensive business. It can cost more than twice as much as insuring a 25-year-old. Covering freshly licensed teen drivers is challenging, as they are deemed risky by auto insurance companies due to their inexperience. Hence, they charge higher rates for teen drivers—the average car insurance for a 16-year-old ranges around $5736 annually and around $473 monthly.

Though the high rates may dishearten a budding driver, here, we include companies that offer the cheapest car insurance, cheapest auto insurance for 16-year-olds by state, insurance rates by coverage levels, full coverage of affordable insurance companies, coverage standard for males and females, cheapest cars for auto insurance, and a stepwise guide to get car insurance for a 16-year-old.

Companies that offer the Cheapest Car Insurance for Individual Policy

Insurance Company Average Monthly Rate Annual Premium
Erie $235 $2820
Allstate $241 $2890
Progressive $290 $3480
Auto Owners $360 $4320
USAA $407 $4884
Nationwide $450 $5400
StateFarm $524 $6288

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Cheapest Auto Insurance for 16-Year-Olds by State

Even though most of the states in the US permit 16-year-olds to obtain an unrestricted license, states like California, Colorado, and Texas permit the use of only a restricted license at 16. While in South Dakota, one can obtain a restricted license when you are 14 years and three months of age.

While Hawaii is the cheapest state for the annual coverage, the rates in Alabama are over $3000 on average. Louisiana tops the chart for whole annual coverage policies for your teen driver.

State Average annual complete coverage rate Average annual minimum coverage rate
Alabama $7,292 $2,827
Alaska $5,440 $1,744
Arizona $6,368 $3,265
Arkansas $10,422 $4,156
California $6,190 $2,153
Colorado $7,695 $2,646
Connecticut $10,183 $5,029
Delaware $8,453 $4,509
Florida $8,606 $2,316
Georgia $7,709 $3,508
Hawaii $1,083 $3508
Idaho $4,152 $1,660
Illinois $6,137 $2,591
Indiana $4,675 $1,843
Iowa $3,943 $1,198
Kansas $5,348 $1,900
Kentucky $10,602 $4,668
Louisiana $13,415 $5,459
Maine $4,248 $1,805
Maryland $7,457 $3,462
Massachusetts $4,985 $2,026
Michigan $10,429 $5,240
Minnesota $4,321 $1,960
Mississippi $6,663 $2,475
Missouri $8,200 $3,096
Montana $6,994 $2,077
Nebraska $4,740 $1,638
Nevada $9,156 $4,829
New Hampshire $5,238 $2,121
New Jersey $9,567 $4,003
New Mexico $5,779 $2,060
New York $7,910 $4,195
North Carolina $3,179 $1,338
North Dakota $4,825 $1,663
Ohio $4,065 $1,765
Oklahoma $6,979 $2,291
Oregon $5,681 $2,891
Pennsylvania $5,505 $1,994
Rhode Island $11,954 $6,413
South Carolina $6,405 $2,961
South Dakota $4,958 $1,341
Tennessee $5,356 $1,988
Texas $10,216 $4,022
Utah $6,696 $3,103
Vermont $4,771 $1,486
Virginia $5,967 $2,546
Washington, D.C. $7,248 $3,465
West Virginia $6,040 $2,205
Wisconsin $4,725 $1,771
Wyoming $4,498 $1,385

Rates by Gender

Gender has an impact on insurance rates. Statistically, a 16-year-old male is likely to be involved in an accident or obtain a citation, hence costly to insure. Male 16-year-old drivers pay $350 more for insurance every six-month coverage period than female 16-year-old drivers.

Average Monthly Rates According to Gender

Age Female Male
16 $459 $508

Reasons for the High Insurance Cost for 16-Year-Olds

The base rates of insurance coverage are calculated by the companies based on the risk involved. The limited experience of the freshly inducted teen driver makes them fall under the higher risk category. The reasons for the high insurance cost for 16-year-old drivers are noted below.

  • They are unlikely to use seat belts
  • Teens show a tendency to speed, causing accidents.
  • They are inclined towards shorter headways.
  • They also drive late at night and during weekends.

Insurance Rates for Full Coverage

As a less-experienced teen driver, it's important to make sure you have enough insurance to cover you in the event of an accident. A low level of coverage won't cover the costs of the damage, which can put you at financial risk. Opting for full coverage is costly, especially if you are not on your parents' insurance. Upgrading from state minimum to full coverage can cost an extra rate of $376 per month.

Coverage Monthly Premium Average 6 Month Premium
State Minimum $198 $1,179
Full Coverage (50/100/50) $572 $3407
Full coverage (100/300/100) $600 $3570

Cheapest Vehicles for Auto Insurance for 16-Year-Olds

Name of the car Insurance Rates (average annual premium)
Chrysler Voyager $1280
Mazda CX-3 $1300
Fiat 500X Trekking $1310
Honda CR-V LX $1360
Honda HR-V LX $1230
Subaro Forester $1355
Chevrolet Equinox $1462
Ford Escape $1435
Hyundai Tucson $1415
Jeep Wrangler $1420

How to get car insurance for a 16-year-old?

A 16-year-old driver can purchase his or her own vehicle insurance coverage, but such policies come at high quotes. A 16-year-old might well be added to their parents' motor insurance coverage, which would be a less expensive choice.

You should consider available coverage, discounts, customer satisfaction scores, and financial strength while selecting your vehicle insurance. Comparing these criteria, in addition to price, may assist you in locating coverage that suits your needs.

Here is a stepwise guide to get car insurance for your 16-year-old.

  • Contact your insurance company.
  • Discuss the changes you are making to your policy.
  • Include the minimum and maximum coverage and the discounts offered.
  • Keep your teen’s license details, and your insurance details handy.
  • Get quotes and compare.

How to Save on Car Insurance as a 16-year-old driver?

  • While adding a 16-year-old to a family policy costs an average of $3150, adding the same person to an individual policy costs $5325, which seems to be a lot higher. While this is a common step to cut down on insurance costs, a few other hacks can save you money on the insurance of your young driver.
  • Raise your deductible: This is a simple strategy to reduce auto insurance prices. Considering the fact that teens are more likely to be involved in accidents, increasing your deductibles will lead to a considerable reduction in your annual premium.
  • Drop the collision coverage: This is advisable only if your car isn't financed or worth much. Dropping the collision and comprehensive coverage can reduce the premium.
  • Choose a sedan over a sports car: The type of car impacts your insurance prices. A four-door sedan with the highest safety rating from the Insurance Institute for Highway Safety will be less expensive to insure than sports cars and high-end luxury cars.
  • Delay the license: This can be an unpopular opinion among the teens eager to drive, but you can save around 20 percent if your teenage driver is 18 or 19.
  • Avail discounts: Look for options like good student discounts, which can help you save money on auto insurance if you have a specific GPA or are on the dean's list. Defensive driving courses can also help these drivers save money by lowering accident rates and providing discounts. Low mileage discounts and student 'away' discounts are also available options. Keeping a clean driving record can also fetch you a reduction.

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State Wise Average Auto Insurance Rates: Adding a Teen to Parent’s Policy

The cost of car insurance for 16-year-old drivers in the United States ranged from $660 to $15111 per year. Compared to the rest of the country, Maine, Hawaii, and Indiana were the least expensive states while Michigan, Louisiana, and New York were the most expensive. According to where you live and the policy you opt, business rates will also be different from one place to another.

While the policy rates can vary with the states, here is a state wise division of rates when adding a teen to the parent’s policy.

State Annual Premium with Family Plan Annual Premium without Family Plan
Alaska $2,542 $4,247
Alabama $2,676 $4,673
Arkansas $2,554 $5,428
Arizona $2,911 $5,279
California $3,898 $4,733
Colorado $2,749 $5,591
Connecticut $3,084 $5,970
Washington DC $3,151 $5,227
Delaware $3,266 $5,640
Florida $3,550 $5,819
Georgia $2,659 $5,506
Hawaii $1,133 $1,138

Driving Laws for 16-year-olds

  • During the first six months, the newly licensed 16-year-old driver may not have any passengers except for a driving instructor, parent or legal guardian who holds a license, or a person delivering instruction who is at least 20 years old and has held a license for at least four years with no suspensions in those years.
  • One may not drive from 11 pm to 5 am until their eighteenth unless it is for employment, school, medical emergency, or religious activity.
  • They must use permanently installed seatbelts.
  • Handheld computers, cell phones, or any hands-free device may not be used while driving until the driver is eighteen.

There is no one-size-fits-all vehicle insurance company. The best auto insurance company offers the coverages you require, has a high level of customer satisfaction, and offers discounts to keep premiums reasonable. By obtaining quotes from different insurers, you may narrow your search for the best vehicle insurance provider for your home and insurance needs.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with

Frequently Asked Questions

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

The average cost of auto insurance for a young driver varies depending on the company, region, car type, and grades. Individual coverage for a 16-year-old costs an extra $1959 per year, roughly ranging between $164 and $216. This cost is in addition to the two-driver and one-car premium.

Can a 16-year-old get their own car insurance?

Although a 16-year-old driver can obtain their own auto insurance coverage, the cost of such policies is extremely expensive. A 16-year-old may be added to their parent's auto insurance plan, which would be a less expensive alternative.

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

The average annual car insurance premium for a 16-year-old female is $3171, 12% lower than a male driver's annual insurance.

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

The auto insurance cost of a 16-year-old driver is $7180 annually.

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Learn more by city and state for car insurance

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