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How Much Is Car Insurance for a 16-Year-Old? (Updated in 2024)

car insurance on the phone

Whether you’re purchasing a car for the first time or replacing an old vehicle, you’ll need to have a good car insurance policy before you head out on the road. Today there are dozens of different providers to choose from, but if you’re a teenager (let’s say, 16 years of age), you may find that your rates will be a bit higher than your parents. But what’s the average rate for car insurance for 16-year-olds? On average you can expect to pay about $371 for car insurance for a 16-year-old. Keep reading as we explain further.

car and road divider The Importance of Car Insurance

If you get into an automobile accident, Insurance can be a lifeline. And in most states, it’s also a legal requirement. Having a good policy can provide you with peace of mind and it can cover any costs associated with the accident such as medical bills, car repair, and temporary car rentals.

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How Much Does Car Insurance Cost?

In most states, 15 or 16 years of age is the earliest that you can begin driving. And due to limited experience, it often means that car insurance rates will be higher than the average rate for car insurance. Car insurance for a 16-year-old is about $371 for full coverage insurance. If you choose liability insurance, in which you would only be liable for damages to another vehicle, you can expect to pay a lesser amount.

Note that this rate will be depending on a few other factors including whether you have your own individual insurance or if you’re added to that of your parents. Your location, car make/model, average driving distance, and relevant driving history will also play a part in determining how much you’ll pay per month.

Additional Costs to Anticipate

You can also expect to pay higher rates if you have additional coverage included in your insurance. This may include rental car reimbursements, extended medical procedure coverages, lower deductibles, and multiple driver coverage (in which anyone driving your vehicle will be covered under your policy).

car and road divider

Tips For Getting Low Rates for Teen Drivers

1. Don’t Get a Separate Policy

insurance agent hand over documents
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Don’t give your teen driver their own insurance policy if you want to get the lowest rate. If you (the parent) are a good driver, adding your teen to your insurance policy and putting them down as driver of the family vehicle can lower the cost.

2. Raise the Deductible

One of the best ways that you can lower your rate is to simply raise the deductible. The deductible is the amount that you pay towards a claim before the insurance company steps in. Deductibles can be as long as about $500 and can be upwards of $2,000. You pay more each month if the insurance company has to pay more in case of a claim.

3. Consider Covering Your Own Potential Claims

man signing insurance documents
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You can also cover your own claims. Your premiums will be lower if you pay for minor injuries yourself and not ask insurance to cover them. Many people are completely unaware that this is even an option in car insurance policies, but it is with many providers. In these scenarios, you may want to retain coverage for larger, high-ticket claims that you’re unable to handle financially.

4. Look for Discounts

Car insurance providers are aware of the higher risk that comes with insurance teenage drivers and many of them have included options to help offset these costs. For example, if your teen has a certain GPA, some insurance companies will offer a student discount.

Teens may also be eligible for a discount if they go to college 100 miles or more from home. Some providers, such as Progressive, even offer teen discounts for good driving records after a year or so.

5. Get Them an Older Model Vehicle

woman signing insurance documents
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It will cost more to insure a sports car than an older model car. This is why the latter is usually the go-to option for many parents. So, purchasing a $7,000 car instead of one that’s $30,000 may be advantageous when it comes to car insurance rates. Keep in mind that teen drivers have limited driving experience, so they may be more prone to accidents–so why not buy an “entry-level” to help them get their feet wet?

6. Enroll Them in Driver’s Ed Courses

Driver’s education courses can be beneficial even if the state doesn’t require it. They will teach your teenagers safe driving habits. It helps them avoid accidents and many insurance companies offer discounts for additional driver education. When getting quotes, ask the providers about which classes are available locally and if they offer any discounts for enrollment.

7. Consider Personal Liability Umbrella Policy (aka PLUP) Policies

subaru logo on steering wheel
Image Credit: 5033181, Pixabay

You can add your teenager to your auto insurance policy or get additional coverage like PULP. This covers other costs as well as your existing plan. If your teen is involved in an accident that results in damages exceeding your policy limit, they will be covered under this policy.

car and road divider Conclusion

On average you can expect to pay about $371 for car insurance for a 16-year-old. Note that this rate will vary by location, car type, and driving history. Car insurance is a requirement in most states and one of the ways to keep your rates low is to maintain a great driving record by driving responsibly.

Featured Image Credit: New Africa, Shutterstock


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