Getting a driver’s license when you turn 16 is a milestone for many. The thrill of a driver’s license may be short-lived when realizing how much it costs to insure a 16-year-old driver.

Car insurance for teen drivers can be astonishingly high, which is why we’ve analyzed rates to help you find the cheapest car insurance for 16-year-olds.

How Much Is Car Insurance for a 16-Year-Old?

It costs $2,735 a year to add a 16-year-old to a parent’s car insurance policy, on average, according to Forbes Advisor’s analysis. That’s about $230 extra per month.

But compare it to the average car insurance cost for a 16-year-old driver with their own policy: $8,765 per year—a whopping $730 a month.

And don’t forget to look at the total overall insurance cost for the whole family: The average price of a parent’s car insurance policy with a 16-year-old driver included is $5,697 per year, based on the companies we analyzed. The best car insurance will be a policy that has a decent total cost and robust coverage.

It’s super expensive to insure 16-year-old drivers because newly licensed drivers lack experience. Drivers age 16 are more likely to be in accidents and file insurance claims, so they’re charged higher prices for their car insurance. As teen driver gains experience, their car insurance cost will start to decrease as long as they don’t get into any accidents or get cited for traffic violations.

What Is the Cheapest Car Insurance for 16-Year-Old Drivers?

Erie is the cheapest car insurance company for adding a 16-year-old driver to a parent’s car insurance policy, among the companies evaluated.

Adding a 16-year-old to a parent’s policy is generally much cheaper than putting the teen on a policy of their own. Here is how car insurance costs compare for a 16-year-old driver.

Cheapest car insurance for adding a 16-year-old driver

If you’re adding a 16-year-old to an existing policy, Erie is $932 cheaper than the national average ($2,735). Nationwide is the second cheapest company.

Cheapest car insurance companies for 16-year-olds

Car insurance company Average cost per year to add 16-year-old to a parent's car insurance policy
$1,803
$2,098
$2,168
$2,232
$2,402
$2,474
$2,563
$2,594
Overall average
$2,735

*USAA is available only to members of the military, veterans and their immediate families.

*USAA is available only to members of the military, veterans and their immediate families.

Cheapest car insurance for parents plus a 16-year-old driver

If you’re looking for a new policy for both parents and a 16-year-old, Erie has the cheapest car insurance, based on the large insurers in our analysis. USAA is the second cheapest, and Geico is the third cheapest.

Cheapest car insurance companies for parent policy with driver age 16

Car insurance company Average annual car insurance cost of parent policy with 16-year-old driver included
$4,267
$4,373
$4,688
$4,896
$5,266
$5,326
$5,473
$5,629
Overall average
$5,697

*USAA is available only to members of the military, veterans and their immediate families.

*USAA is available only to members of the military, veterans and their immediate families.

Cheap car insurance for 16-year-olds on their own policy

It’s much more expensive for a 16-year-old to buy their own car insurance policy than to be added to a parent’s policy. The average yearly car insurance cost for a 16-year-old with their own policy is $8,765. That’s about $3,000 more than the cost of a parent policy ($5,697) with a driver age 16 added.

Auto-Owners has the cheapest car insurance for 16-year-old drivers with their own separate policy, compared to competitors we evaluated. That’s about $3,380 cheaper than the national average ($8,765). Geico has the second lowest car insurance cost for 16-year-old drivers: $2,875 cheaper than the national average.

Cheapest car insurance companies for 16-year-olds on their own policy

Car insurance company Average car insurance cost per year for 16-year-old on their own policy
$5,383
$5,890
$6,043
$6,071
$6,342
$6,420
$7,065
Overall average
$8,765

*USAA is available only to members of the military, veterans and their immediate families.

*USAA is available only to members of the military, veterans and their immediate families.

What Factors Influence the Cost of Car Insurance for 16-Year-Old Drivers?

Age is a determining factor in car insurance rates, but it isn’t the only one. Here are various factors that will influence the cost of car insurance for 16-year-old drivers.

Age

Adding a teen to a parent’s auto insurance policy increases your rate because insurance companies view inexperienced drivers as a high risk. You won’t be able to avoid a hefty increase, but you can take steps to minimize the financial impact.

Gender

Car insurance companies make rate decisions based on claims they’ve paid. Because teenage males are the source of more claims than female teens, insurance for them will cost more. Of course, if you make a claim, you’ll also likely get a rate hike at your next renewal time.

Location

Location-related factors that often affect car insurance costs include:

  • Weather and disaster claims such as hail and floods.
  • The frequency of auto accidents.
  • The frequency of claims related to auto theft and vandalism.
  • The cost of vehicle repairs, including parts and labor.
  • The cost of medical care, which affects how much insurers must pay for injury claims.

Type of car

If you buy collision and comprehensive insurance, your auto insurance will have to pay for claims related to car theft, damage to your vehicle from crashes, backing into poles, trees falling on your car and more. If your car is more expensive to repair or replace than other vehicles, the extra cost will be reflected in your rates for collision and comprehensive coverage.

What Discounts Are Available for 16-Year-Olds?

You may not find a ton of car insurance discounts for 16-year-olds because they have a strong track record as risky drivers who cause insurance claims. But it’s worthwhile to see what your teen may be eligible for.

Good student discount

A “good student discount” is a no-brainer if your 16-year-old driver qualifies. But you may have to ask for it, or your car insurance company won’t know to add it.

Forbes Advisor’s analysis of good student discounts found an average of 4% savings.

The eligibility rules for this discount can vary a little by company, but generally, the student needs to be within a certain age range, going to high school or college full-time and receiving good grades.

Typically “good student” can mean any of these:

  • In the upper 20% of their class.
  • Grade average of B or better.
  • Average of 3.0 or better.
  • On the Dean’s List, Honor Roll or comparable listing.
  • In the upper 20% of a national standardized test within the past 12 months, such as the PSAT.

Discount for a driver training class

This discount may be less common but worthwhile if your insurance company offers it. If your 16-year-old completes an approved driver training program, you could earn a training discount. Make sure the course you’re looking at is approved for the discount before you count on it for a price break.

Related: Car Insurance for New Drivers

Can a 16-Year-Old Get Their Own Insurance Policy?

A 16-year-old can get their own insurance policy if they have a vehicle registered in their name. But you’ll likely find this to be prohibitively expensive. You can usually save money by putting a 16-year-old driver on a parent’s auto insurance policy.

How to Get the Cheapest Insurance Policy at 16

Here are some tips for getting the cheapest car insurance for a 16-year-old.

Get multiple quotes

Once you add a 16-year-old to your car insurance policy, the company that was cheap for parents before may no longer have competitive rates. Adding a new driver is a good time to compare car insurance quotes to see where the better deals are.

Explore discount opportunities

Focus on good student discounts and price breaks for completing a driver’s education class. But also ask your car insurance agent what other discounts might apply for families with a 16-year-old driver.

Drive an affordable car

Collision and comprehensive insurance will cost less if your vehicle is cheaper to repair or replace. You want a solid, safe vehicle for your teen driver, but avoid luxury cars, and definitely avoid a sports car if you want to keep insurance rates in check.

Increase your deductibles

If you buy collision and comprehensive insurance, you’ll choose a deductible. You can usually save money by having a higher deductible—such as $1,000 instead of $500.

Ask your car insurance agent to give you quotes for various levels of higher deductibles. Then decide if the savings is worth it, keeping in mind that a 16-year-old driver is more likely than an adult to crash into something.

Coverage amount

You may be toying with the idea of reducing coverage to save money. But if you have a 16-year-old driver, this is no time to skimp on auto insurance coverage. Teens are more likely to be involved in car accidents, so your chances of needing good insurance due to claims are higher.

Related: Car Insurance for teens

Average Car Insurance Cost by State for 16-Year-Olds

Below, you’ll see how the cost for adding a driver age 16 to a parent policy compares to the cost of a separate car insurance policy, broken down by state.

Average cost by state for adding driver age 16 to parent policy vs. own policy

State Average annual cost to add a 16-year-old to a parent’s car insurance policy Average annual car insurance cost for a 16-year-old on their own car insurance policy
$3,073
$5,134
$3,280
$5,146
$3,219
$5,324
$2,649
$4,777
$3,222
$6,496
$2,938
$6,449
$2,962
$5,319
$3,002
$6,735
$4,046
$11,376
$3,165
$6,529
$641
$1,521
$2,040
$3,951
$2,470
$8,357
$2,146
$5,174
$1,760
$3,897
$2,503
$5,932
$3,273
$5,095
$4,719
$8,716
$2,080
$4,540
$3,025
$8,163
$2,499
$6,995
$2,361
$6,743
$2,705
$6,838
$2,644
$5,830
$3,206
$5,684
$1,908
$5,001
$2,328
$4,233
$4,036
$8,142
$1,729
$3,989
$2,912
$7,263
$2,679
$5,144
$3,569
$9,750
$1,738
$3,548
$1,903
$4,213
$2,192
$3,831
$2,614
$7,424
$2,450
$4,940
$3,196
$9,756
$3,181
$6,354
$2,907
$6,153
$1,840
$4,929
$2,702
$5,461
$2,969
$6,313
$3,230
$5,956
$1,348
$3,488
$2,255
$4,494
$2,614
$5,368
$2,338
$5,350
$1,975
$5,059
$1,831
$3,309

Average Car Insurance Cost by Gender for 16-Year-Olds

Insuring a 16-year-old male driver costs 25% more than insuring a female of the same age when added to a parent policy. Male teens are more expensive to insure than their female counterparts because teen males have a higher rate of car accidents, which leads to filing more car insurance claims. The more risk you pose, the more you pay.

Average car insurance cost by gender for drivers age 16 on parent policy

Average annual cost to add 16-year-old female to parent policy Average annual cost to add 16-year-old male  to parent policy Average $ increase for males vs. females, age 16 Average % increase for  males vs.  females, age 16
$2,435
$3,035
$600
25%

 

Male drivers pay more than females when buying their own policy at age 16.

Related: Car insurance rates by age and gender

Average car insurance cost by gender for 16-year-olds on their own policy

Annual average cost of 16-year-old female on own policy Annual average cost of 16-year-old male on own policy Average $ increase for males vs. females, age 16 Average % increase for males vs. females, age16
$8,108
$9,422
$1,314
16%

 

Best Car Insurance Companies 2024

With so many choices for car insurance companies, it can be hard to know where to start to find the right car insurance. We've evaluated insurers to find the best car insurance companies, so you don't have to.

Learn More

Methodology

We used data from Quadrant Information Services, a provider of insurance data and analytics. Rates are based on a parents and a 16-year-old driver with clean records insuring a Toyota RAV4. Policy limits are  $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability (known as 100/300/100), uninsured motorist coverage, and collision and comprehensive with a $500 deductible.

Cheap Car Insurance for 16-Year-Olds FAQ

Why is car insurance so expensive for 16-year-olds?

The cost of insuring a 16-year-old driver is expensive because they lack driving experience, which increases their likelihood of accidents. Car insurance companies usually charge high-risk drivers more than safe, experienced drivers. The risk of being in car crashes, especially fatal crashes, is the highest at ages 16 and 17, according to the Insurance Institute for Highway Safety.

Because car insurance costs for 16-year-olds are so high, it’s essential to compare car insurance quotes to find the car insurance company with the best rates. Also, keeping a clean driving record will help the 16-year-old find better prices now and in the future.

Related: Car insurance for high risk drivers

Can you add a 16-year-old to an existing policy?

Yes, you can add a 16-year-old driver to an existing car insurance policy. Adding teen drivers to your policy is usually a much cheaper option than the teen buying their own policy.

When it’s time to add your 16-year-old to your car insurance, shop around to find the lowest rates possible. The cost to add your teen driver can vary significantly among insurance companies. Inquire about the best car insurance for teens and discounts your teen may be eligible for.

At what age will car insurance rates start to go down?

Car insurance rates continually decline as teens get older, and by age 21, the cost of being added to a parent policy is significantly cheaper than the cost of adding a 16-year-old. For instance, it costs $2,735 per year on average to add a 16-year-old to a parent policy. That dips to $2,360 per year for 17-year-olds. For 21-year-old drivers, it drops to $1,110.

Put another way: The average yearly cost for drivers age 16 with their own policy is $8,765. For drivers age 21, it’s $3,459, or about $5,000 cheaper. To find cheaper car insurance for your teen, shop around each year to see if switching car insurance companies will help you save even more.

Will safe driving influence the cost of car insurance for a 16-year-old driver?

Yes, safe driving influences the cost of car insurance for a 16-year-old driver. Your driving record is one of the key factors taken into account by insurance companies when pricing policies. Typically, the safer you drive, the lower your rate; if all else is equal

Accidents and moving violations can hike car insurance costs, regardless of the driver’s age.  For example, car insurance rates after a speeding ticket increase by 24%, on average, based on Forbes Advisor’s analysis. If you’re already paying a lot for car insurance as a newly licensed driver, adding an increase for a violation or accident is likely to significantly increase your rates.