Obtaining a driver’s license is a thrilling rite of passage that comes with a sense of freedom and accomplishment. It also entails high car insurance quotes, sadly. To add a 16-year-old driver to their parent’s policy, the average cost increase is $2541 per year for full coverage.
Car insurance for a 16-year-old driver IS expensive. Teen drivers are riskier to insure since they lack the benefit of experience for insurance companies to consider when calculating rates. It would be best if you compare car insurance from various companies. This will save you money. While 16-year-olds are among the most costly age groups to insure, Way.com’s research has revealed methods that you can use to obtain cheaper coverage. Our auto insurance review for 16-year-olds may help you feel more in charge of your insurance, from understanding what factors influence your teen’s rate to what discounts are available for new drivers.
Although teen auto insurance might be costly, you can typically discover choices that meet your budget without sacrificing coverage. One of the most effective methods is to shop about and obtain quotes from several insurance companies. This will allow you to compare coverage options and savings, as well as determine the average premium in your area for adding a 16-year-old to your policy.
When looking for a car insurance policy, you should also evaluate available coverages, discounts, customer satisfaction scores, and financial strength. In addition to price, comparing these variables may help you locate the coverage that meets your needs.
How much is car insurance for a 16-year-old?
The average cost of car insurance for a young driver will vary depending on several criteria, including region, car type, and the kids’ grades depending on the company. However, there is one area where parents can save significantly: adding a 16-year-old to a family plan, which is often less expensive, rather than having the adolescent buy individual coverage. Insuring a 16-year-old on an individual policy costs an extra $1959 each year on average.
This expense is in addition to the premium that parents pay for two drivers and one car. The additional $216 per month does not include the cost of obtaining a vehicle for your 16-year-old. Adding a new driver to an auto insurance policy might be costly. This is because car insurance rates are based on risk. Young drivers, because of their inexperience on the road, are among the most dangerous to insure.
A teen driver is more likely than any other age group to be involved in accidents.
The difference in rates due to gender
When it comes to insuring new teen drivers, there is a gender disparity. In most cases, insuring a 16-year-old male driver costs more than insuring a 16-year-old female driver. This is because male drivers have a greater accident rate and file more insurance claims, making them a larger risk to insurance companies.Â
According to our research, a female driver’s annual car insurance is 12% lower than a male driver’s annual insurance. However, as those equivalent drivers approach the age of 18, the discrepancy narrows slightly. The average annual car insurance premium for a 16-year-old female is $3171. The average annual vehicle insurance premium for a 16-year-old male is $3591. The car insurance rate for a male is approximately $420 higher. That is a difference of around 12.42 percent.
Car insurance for a 16-year-old added to a family policy
If you choose to add your young driver to an existing family policy, the car insurance company you choose might have a big impact on the cost of car insurance. According to Way.com, among the cheapest car insurance companies for 16-year-old drivers. There is still a 20% gap in average annual cost between the first and fifth-ranked businesses.
ADDED TO FAMILY POLICY CHEAPEST COMPANIES FOR 16-YEAR-OLDS
- Allstate – $3150
- Nationwide – $3792
While the cheapest average cost we found for adding a 16-year-old to a family policy is $3150, individual insurance for the same-age driver costs an average of $5325.Â
COMPANIES WITH THE LOWEST PRICES FOR A 16-YEAR-OLD’S POLICY
- Nationwide – $4713
- Allstate – $5352
There is no single best car insurance company because everyone’s scenario is unique. The finest car insurance company provides the coverages you require, has high customer satisfaction ratings, and provides discounts to keep prices low. Obtaining estimates from multiple insurers will assist you in locating the ideal auto insurance company for your home and insurance requirements.
Type of car influences car insurance for a 16-year-old
The sort of car that a young driver uses also impacts how much it will cost to add the teen to your insurance. If you want to buy a car for your 16-year-old driver, you should consider how the car type will affect the cost. Expensive and high-performance automobiles, for example, will raise rates. A less expensive, safer car, on the other hand, can be a good way to save money.
Although shopping for car insurance for young drivers can be intimidating, there are tried-and-true tactics you can take to cut costs and acquire the best car insurance for a 16-year-old. Adding one of these young drivers to a family policy is a smart option to explore since it can save you an average of nearly $500 per year, even if you choose the cheapest choice for either type of policy.
Compare insurance quotes to find the best policy for your family
When it comes to car insurance, comparing rates can help you save money no matter who is driving. By analyzing your options, you will better understand the various coverage kinds and pricing, allowing you to choose the best auto insurance for a 16-year-old driver more easily. The more quotes you obtain, the better. Keep an eye on your teen driver to ensure they have a clean driving record.
As with other drivers, ensuring your young driver maintains a clean driving record is an excellent method to keep vehicle insurance prices low. Accidents and tickets, on the other hand, will significantly raise your 16-year-vehicle old’s insurance premiums. It’s especially crucial to keep an eye on your young driver when they’re between the ages of 16 and 17 when crashes are statistically more common.
Look for companies that provide discounts for teens
Many companies provide discounts to drivers in exchange for factors like safety and loyalty. The same is true for younger drivers. Look for possibilities such as good student discounts, which can help you save money on auto insurance for young drivers who maintain a certain GPA or dean’s list status. Defensive driving courses can also help these drivers save money through discounts and by lowering accident rates. This will save money for families over time.
Reduce the amount of coverage
The amount of coverage you require will vary. Limiting those can lower insurance company costs for those who are willing. Of course, you must still meet your state’s minimal standards. But reducing coverages can be a viable alternative for individuals trying to save money.
If you possess a low-cost car, for example, you may want to investigate liability-only car insurance. It’s also worth noting that you won’t be protected for your car damage or personal injury costs if you choose this form of coverage. If you don’t have enough money to replace or repair a wrecked car in the event of a collision, it might become an expensive problem.
Sedan better than sports car any day
When it comes to car insurance premiums, the type of car is critical. A four-door sedan with the Insurance Institute for Highway Safety’s top safety rating — will be less expensive to insure than a muscle car focused on performance. Sports cars and high-end luxury cars, in general, will become more expensive.
Why are the rates for a 16-year-old driver high?
Teenage drivers tend to cost more to insure since they are more likely to be involved in an accident and utilize their insurance. The younger the motorist, the more likely they may be engaged in a collision. According to data from police-reported collisions from 2018 to 2019, drivers aged 16–17 were involved in nearly twice as many fatal crashes as drivers aged 18–19 for every 100 million kilometers driven.
Teens are more likely to be involved in an accident. While juvenile drivers had fewer fatalities per capita than adult drivers, they had more fatalities per mile. When it comes to accidents, teenagers are a riskier bet. This will raise the cost of auto insurance. While there are fewer deaths per capita among juvenile drivers, there are more deaths per mile traveled. Limiting your teen’s driving distance could help you save money while also keeping them safe.
Where you live will also impact your auto insurance premiums, not just because local statistics influence pricing but also because you may have fewer options. In the United States, the average cost of car insurance for 16-year-old drivers ranged from $660 to $15111 per year. Maine, Hawaii, and Indiana were the cheapest states on average, while Michigan, Louisiana, and New York were the most costly.
Company rates will also differ by state. The cheapest car insurance companies for a 16-year-old driver ranges from $711 to $7665 per year. This is an average rate. This rate depends on the area and policy selected.
Things to remember when looking for car insurance for 16-year-old
Although teen auto insurance might be costly, you can typically discover choices that meet your budget without sacrificing coverage. One of the most effective methods is to shop about and obtain quotes from several insurance companies. This will allow you to compare coverage options and savings, as well as determine the average premium in your area for adding a 16-year-old to your policy.
When looking for a car insurance policy, you should also evaluate available coverages, discounts, customer satisfaction scores, and financial strength. In addition to price, comparing these variables may help you locate the coverage that meets your needs.
The type of coverage you have before adding your young driver will determine how you adjust your coverage. If you only have a liability policy, it may be worth the extra money to acquire full coverage. This is because teenagers are inexperienced and may have more accidents.
However, if you are okay paying for car repairs out of pocket or purchasing a new car if yours is totaled, you may want to investigate liability-only coverage to save money. Speaking with a certified insurance agent to price out your options may assist you in making a decision.
Because 16-year-olds are considered minors, they are often unable to obtain their car insurance policy. They must be named as drivers on their parent’s or guardians’ insurance. When a motorist reaches the age of 18, they can acquire their insurance policy. It can, however, be financially advantageous to remain on a parent’s or guardian’s insurance until they move out and create their household.
Way.com could be your answer
Concerned that you’re paying too much for car insurance? Look into the factors that determine the average cost of your car insurance. It will help you see if you’re paying too much. Way.com has broken down auto insurance rates by state and driver demographics to help you with this. We have a list of the top 2021 car insurance companies. This could come in handy if you’re looking for a different option.
Car insurance costs vary depending on a variety of factors. Therefore it is critical to obtain numerous quotes to compare if you are searching for the cheapest insurance coverage. Adding a 16-year-old driver to your auto insurance coverage will cost you an extra $216 per month on average.
If you don’t already have the right insurance, you should get it as quickly as possible to comply with your state’s minimal insurance requirements. Way.com can help you get free car insurance quotes. Learn more about Way.com and how to get the right car insurance by taking your lifestyle into account. Why not contact us for a free quote? At Way.com, you get free car insurance quotes from different companies and even buy if you like what you see.
Check out our blogs for info on finding top-rated airport parking, the best parking spots in your city, and affordable car washes near you.
