Car Insurance Costs for a 16-Year-Old
- Progressive has the cheapest car insurance for most families with a 16-year-old.
- Regional companies like Erie and Farm Bureau may be cheaper.
- Adding a 16-year-old to a parent’s insurance costs $170 a month for liability coverage and $328 for full coverage.
How much is car insurance for a 16-year-old?
Either level of coverage increases a two-parent household’s insurance rate by more than double.
Insurance costs for parents with a 16-year-old
| Coverage amount | Two parents only | Parents with child | % increase |
|---|---|---|---|
| Liability | $119 | $289 | 143% |
| Full coverage | $262 | $590 | 125% |
Car insurance costs for 16-year-olds on their own
Full coverage costs an average of $678 a month for 16-year-olds on their own.
Savings for a 16-year-old on a parent’s policy
| Coverage amount | Own policy | On parent's policy* | Savings with parent |
|---|---|---|---|
| Liability | $320 | $170 | -47% |
| Full coverage | $678 | $328 | -52% |
*Does not include parents’ share of premiums.
Most 16-year-olds get added to a parent’s car insurance. However, there are times when 16-year-olds need their own policy, such as if their parents don’t drive.
In most states, you have to be 18 to enter into any contract, including car insurance. However, you can usually get car insurance before then if a parent or guardian cosigns your application.
What is the cheapest car insurance for a 16-year-old
Farm Bureau Farm Bureau offers car insurance in about 30 states. and Erie Erie car insurance is available in 12 states and the District of Columbia. are cheaper. However, these companies are not available in as many areas as Progressive. Auto-Owners Auto-Owners is in 26 states. , which is also a regional company, has cheaper full coverage than Progressive.
Cheap car insurance for parents with a 16-year-old
| Company | Liability | Full coverage | LendingTree score | |
|---|---|---|---|---|
 | Farm Bureau | $131 | $347 |  |
 | Erie | $134 | $353 | |
 | Progressive | $192 | $492 | |
 | Auto-Owners | $210 | $474 |  |
 | American Family | $221 | $528 | |
 | Geico | $253 | $571 |  |
 | State Farm | $276 | $544 |  |
 | Country Financial | $289 | $589 | |
 | AAA | $292 | $570 |  |
 | Travelers | $346 | $640 | |
Your family’s actual rate depends on factors like your driving records, vehicles and location. Each company’s rates vary by customer. This makes it good to compare car insurance quotes from a few different companies before you buy or renew your policy.
Cheapest car insurance for a 16-year-old on their own
State Farm is the cheapest large car insurance company for 16-year-olds on their own. It charges 16-year-olds $201 a month for liability and $409 a month for full coverage.
Standalone insurance for 16-year-olds
| Company | Liability | Full coverage |
|---|---|---|
| Erie | $118 | $291 |
| Farm Bureau | $145 | $382 |
| Auto-Owners | $174 | $373 |
| State Farm | $201 | $409 |
| Country Financial | $221 | $449 |
| American Family | $224 | $512 |
| Geico | $247 | $624 |
| Travelers | $333 | $626 |
| Progressive | $346 | $1,002 |
| AAA | $351 | $715 |
Why is car insurance so expensive for 16-year-olds?
At 16, you need time to establish a claims-free insurance history and good credit. These are factors that help you get cheaper rates as you gain driving experience.
Does car insurance cost less for 16-year-old girls?
Full coverage for a 16-year-old girl costs $304 a month on a parent’s policy, compared to $351 a month for a boy.
Rate differences for 16-year-old boys and girls
| Coverage amount | Monthly for boys* | Monthly for girls* | Difference |
|---|---|---|---|
| Liability | $180 | $161 | 12% more for boys |
| Full coverage | $351 | $304 | 15% more for boys |
*Does not include parents’ share of premiums.
Young female drivers have lower crash rates than young male drivers. This is one of the main reasons why 16-year-old girls often get car insurance for less than their male peers.
When does a 16-year-old need car insurance?
A 16-year-old with a learner’s permit usually doesn’t need their own insurance right away. Their parent’s car typically covers them while driving under a parent’s supervision in their family’s car. However, parents should check with their insurance company to find out if any restrictions apply.
Money-saving car insurance tips for 16-year-olds
Is shopping for car insurance worth it?
A family can often save 10% to 20% or more on car insurance by shopping around. Each insurance company uses a different system to calculate your rate. Some have lower rates for 16-year-olds than others. You may also qualify for more discounts with one company than you do with others.
Getting car insurance quotes from multiple companies is a good way to find the cheapest rate.
What cars are the cheapest for 16-year-olds to insure?
A 16-year-old can often get a cheaper insurance rate by driving an older car with a low resale value. These cars tend to be cheaper to insure. They also may need less insurance coverage.
For example, a 16-year-old who drives a car worth less than a few thousand dollars may not need collision and comprehensive Collision covers your car for damage from a collision with another vehicle or object. Comprehensive covers your car for theft and damage from non-collision causes, like fire, flood and vandalism. coverage. Removing these from a car that doesn’t need them can often shave a few hundred dollars off your rate.
Car insurance discounts for 16-year-old drivers
The savings from car insurance discounts can add up fast. Below are good ones for 16-year-olds or their parents to ask about:
- Good student: Most companies give 16-year-olds a good student discount for maintaining a B average or better. You don’t need school transcripts to get a quote. But you will need to provide them to the insurance company you choose to verify your eligibility.
- Driver’s education and training: Several car insurance companies give 16-year-olds a discount for completing driver’s education and/or driver training. The requirements vary by company. Some companies accept any accredited program. A few companies, including Allstate, give you a discount for completing Adept Driver’s teenSMART program.
- Safe driving app: Several companies give you a discount just for joining their safe driving program. These programs typically use a smartphone app to monitor your driving. If you drive safely enough, you get future discounts when you renew. These apps also log unsafe behaviors. This feedback can help a 16-year-old become a better driver. It’s good to read the data privacy disclosure before you sign up.
How tickets and accidents affect your car insurance rate
A speeding ticket raises a young driver’s car insurance rate by an average of 17%. An at-fault accident makes your rate go up by 37%. These are just a couple of examples of how a bad driving record can affect your car insurance rate. If you do get a violation, consider going to driving school or a similar program, if available, to keep it off your record.
Frequently asked questions
A 16-year-old can usually get their own car insurance if a parent or guardian cosigns their application. In most states, you have to be at least 18 to enter any contract on your own.
A two-parent household can see their car insurance rates go up by more than double with a 16-year-old on their policy.
Usually, yes. Most car insurance companies require you to include all the drivers in your household on your policy. The exceptions vary by company and state.