Cheap Car Insurance For a 16-Year-Old Driver
Key takeaways:
- 16-year-olds pay the highest car insurance rates of any age group.
- You might reduce your 16-year-old’s insurance cost by adding them onto your current car insurance policy.
Cheapest car insurance companies for a 16-year-old
Using South Carolina as an example, the average cost of minimum coverage car insurance (liability only) for 16-year-olds is $295 a month, while the overall state average is just $67 a month.
The cost of full-coverage car insurance for a 16-year-old averages a hefty $563 a month, compared to $151 for a typical South Carolina driver.
Example: Car insurance for 16-year-olds in South Carolina
| Company | Minimum | Full coverage |
|---|---|---|
| Allstate | $302 | $618 |
| Auto-Owners | $211 | $416 |
| Geico | $195 | $377 |
| Nationwide | $353 | $812 |
| Progressive | $489 | $881 |
| SC Farm Bureau | $215 | $328 |
| State Farm | $261 | $479 |
| Travelers | $371 | $630 |
| USAA | $261 | $524 |
| Average | $295 | $563 |
In fact, 16-year olds pay the highest average rates for car insurance of any age group. This is mostly because insurance companies believe a driver at that age has little experience driving.
The cost of car insurance for a 16-year-old driver is calculated based on different factors, including:
- ZIP code
- Make and model of car
- Driving history
- Insurance coverage, limits and deductible chosen
According to the Insurance Institute of Highway Safety, teens drive less than older drivers, yet they’re involved in crashes four times more often. Insurers charge higher rates to offset that risk.
Teen insurance gender gap
There are car insurance cost differences between 16-year-old boys and girls as well.
Car insurance companies sometimes consider male drivers to be more risky behind the wheel, and adjust quotes to reflect that.
But while there are a few insurers who charge boys and girls more or less the same (or even slightly more for girls), most require higher rates for boys.
Example: Minimum coverage car insurance by gender (South Carolina)
| Company | 16-year-old male | 16-year-old female |
|---|---|---|
| Allstate | $329 | $275 |
| Auto-Owners | $248 | $173 |
| Geico | $196 | $194 |
| Nationwide | $394 | $312 |
| Progressive | $503 | $475 |
| SC Farm Bureau | $213 | $218 |
| State Farm | $290 | $232 |
| Travelers | $423 | $319 |
| USAA | $257 | $265 |
Does a 16-year-old need car insurance?
Anyone getting behind the wheel, including a teen driver, needs to have their state’s required minimum coverage car insurance limits.
Some car insurance companies allow young drivers with a drivers permit to stay on their parent’s car insurance until they have their license. You’ll want to check with your insurer to make sure.
How do I get car insurance for a 16-year-old?
Comparing car insurance quotes from several companies is a good way to make sure you’re getting the best combination of cost and coverage for your young driver.
Different car insurance companies calculate policy premiums in different ways. Looking at multiple quotes side-by-side for the same coverage can help you lock down the best car insurance for your 16-year-old.
Another easy way to get car insurance for your 16-year-old is to add them to your policy. Although your premium will almost definitely go up, it will still likely be cheaper than if you and your young driver had separate policies.
In some states, 16-year-olds aren’t allowed to enter into legal contracts on their own, so in those cases you’ll have no choice but to put them on your own car insurance. Any car insurance company in your state will let you know if this is a requirement.
Sticking to our South Carolina example, the table below compares rates for an adult driver and their teen child on one full-coverage policy, versus what that child would pay for a full policy of their own.
Example: Car insurance rate comparison (South Carolina)
| Company | Adult & teen | Teen only |
|---|---|---|
| Allstate | $677 | $618 |
| Auto-Owners | $403 | $416 |
| Geico | $396 | $377 |
| Nationwide | $892 | $812 |
| Progressive | $499 | $881 |
| SC Farm Bureau | $386 | $328 |
| State Farm | $550 | $479 |
| Travelers | $733 | $630 |
| USAA | $342 | $524 |
Whether you’re adding a teen onto your current policy or getting them their own, consider raising the liability limits of that policy.
Since 16-year-olds are at a much higher risk of getting into an accident, you’ll want to make sure your coverage can handle the possible medical and legal costs that can arise. Raising your liability limit to at least $300,000 can put you in a more secure space, and it might not result in such a big premium increase.
How else can a 16-year-old save on car insurance?
Teen drivers can take advantage of discounts often offered by car insurance companies to help bring their rates down. These might include:
- Good student discount: Many insurers offer a discount to students who maintain a 3.0 (or higher) grade point average. The car insurance company will probably require a copy of the child’s school transcripts in order to qualify.
- Driver safety discount: You may be able to reduce your 16-year-old’s rates by enrolling them in a qualifying driver safety course. Your car insurance company will let you know what its requirements are.
- Safety app discount: Some car insurance companies offer discounts if you take part in their safety app program. Using a device installed in the car, insurers can keep track of a motorist’s driving habits and then offer savings if the data shows safe driving practices are followed.
Methodology
LendingTree obtains rate data from insurance company filings reported to Quadrant Information Services.
Rates are based on an analysis of car insurance quotes for households in South Carolina. Sample households included a 50-year-old parent with an 18-year-old child.
Liability rates are for policies meeting each state’s minimum liability insurance requirements.
Full-coverage policies include:
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000
- Uninsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Collision: $500 deductible
- Comprehensive: $500 deductible
Rates are shown for comparative purposes only. Yours may vary.