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.
|Insurance Company||Average Monthly Rate||Annual Premium|
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|
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
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.
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|
|Full Coverage (50/100/50)||$572||$3407|
|Full coverage (100/300/100)||$600||$3570|
|Name of the car||Insurance Rates (average annual premium)|
|Fiat 500X Trekking||$1310|
|Honda CR-V LX||$1360|
|Honda HR-V LX||$1230|
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.
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|
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.
The auto insurance rates published in this guide are based on the results of research completed by Way.com’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 way.com
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.
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.
The average annual car insurance premium for a 16-year-old female is $3171, 12% lower than a male driver's annual insurance.
The auto insurance cost of a 16-year-old driver is $7180 annually.
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