Car Insurance for a 20 Year Old New Driver
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Start the process when he or she has a learner's permit.
The average car insurance rate for a 16-year-old on their own policy is close to $7,000 a year for full coverage. That rate is more than $5,000 over the national average for 30-year-old drivers.
Newly licensed drivers are expensive to insure. They are inexperienced and have a higher rate of accidents than other age groups. Auto insurance companies view 16-year-old drivers as high risk to insure and, consequently, charge them much higher rates.
It is safe to say that car insurance for your new driver will not be cheap. But there are still some smart ways to save while still ensuring you have sufficient coverage. We'll explain how
Car insurance for teens: average cost
The average car insurance rate for a 16-year-old who has his or her own policy is as follows per year:
- State minimum coverage: $2,593
- Liability limits of 50/100/50: $2,957
- Full coverage: $6,930
What you pay to insure your teen driver will vary, depending on your insurer, whether or not the teen is added to your policy, the state you live in, the type of car they drive and coverage limits, among other factors.
To give you an idea of what to expect to pay for coverage, we provide average annual rates by state in the charts below.
The rates for a separate teen policy are based on having the following coverage limits on a 2017 Honda Accord, along with any other state-required coverages, and a deductible of $500:
- $100,000 for injury liability for one person
- $300,000 for all injuries in one accident
- $100,000 for property damage
For the cost to add a teen, CarInsurance.com compared rates in 10 zip codes in each state. The family profile we used owned a 2017 Honda Accord driven by a 45-year old man buying full coverage. Then we added a 16-year old teen to the policy. You'll see that adding a teen is much less expensive. That's because when teens get their own policy, they don't qualify for many discounts. Also, teens are commonly listed as a secondary driver on parents' policies. Though adding a teen to parent policy is cheaper than the teen having his or her own separate policy, the cost of adding a teen driver can be hundreds of dollars.
Car insurance cost for a 16-year-old female
The average cost for insurance for a 16-year-old female is $6,562. That's for a policy of her own that includes comprehensive and collision coverage, with liability limits of 100/300/100. Teen female drivers age 16 pay $920 less than males their age. Below you'll see average insurance costs by state for a 16-year-old female, and how that compares to the price of a parent policy with the child added on. You'll see that adding a teen is much less expensive. That's because when teens get their own policy, they qualify for few discounts compared to their parents. Also, teens are commonly listed as a secondary driver on parents' policies.
| State | Teen Policy | Parent Policy | Parents' Policy with Teen Added |
|---|---|---|---|
| Alaska | $5,447 | $1,318 | $3,348 |
| Alabama | $6,909 | $1,479 | $3,050 |
| Arkansas | $7,273 | $1,550 | $3,192 |
| Arizona | $6,306 | $1,533 | $3,356 |
| California | $6,913 | $2,018 | $4,175 |
| Colorado | $7,590 | $1,733 | $3,258 |
| Connecticut | $9,917 | $1,914 | $4,933 |
| DC | $7,770 | $1,690 | $3,310 |
| Delaware | $7,875 | $1,736 | $3,190 |
| Florida | $8,202 | $2,502 | $4,855 |
| Georgia | $7,528 | $1,638 | $3,523 |
| Hawaii | $1,547 | $1,287 | $1,364 |
| Iowa | $4,337 | $1,054 | $2,245 |
| Idaho | $5,389 | $1,105 | $2,246 |
| Illinois | $5,530 | $1,208 | $2,631 |
| Indiana | $5,727 | $1,237 | $2,534 |
| Kansas | $5,873 | $1,408 | $2,590 |
| Kentucky | $9,528 | $1,682 | $3,459 |
| Louisiana | $10,893 | $2,547 | $5,484 |
| Massachusetts | $5,443 | $1,469 | $3,445 |
| Maryland | $6,283 | $1,615 | $2,986 |
| Maine | $4,297 | $879 | $1,794 |
| Michigan | $14,533 | $2,900 | $5,846 |
| Minnesota | $5,099 | $1,233 | $2,540 |
| Missouri | $6,328 | $1,350 | $2,623 |
| Mississippi | $6,851 | $1,400 | $2,743 |
| Montana | $6,452 | $1,530 | $2,235 |
| North Carolina | $3,471 | $1,150 | $2,738 |
| North Dakota | $5,467 | $1,155 | $2,126 |
| Nebraska | $5,268 | $1,230 | $2,011 |
| New Hampshire | $6,563 | $1,159 | $2,702 |
| New Jersey | $6,474 | $1,595 | $3,990 |
| New Mexico | $7,325 | $1,387 | $2,976 |
| Nevada | $8,908 | $1,905 | $4,353 |
| New York | $5,089 | $1,777 | $3,476 |
| Ohio | $5,039 | $997 | $1,896 |
| Oklahoma | $7,482 | $1,812 | $3,709 |
| Oregon | $7,486 | $1,504 | $3,413 |
| Pennsylvania | $5,795 | $1,503 | $3,234 |
| Rhode Island | $10,023 | $1,939 | $4,603 |
| South Carolina | $6,188 | $1,653 | $3,395 |
| South Dakota | $6,182 | $1,226 | $2,140 |
| Tennessee | $7,998 | $1,214 | $2,973 |
| Texas | $6,791 | $1,618 | $3,537 |
| Utah | $6,323 | $1,267 | $2,556 |
| Virginia | $4,276 | $929 | $2,119 |
| Vermont | $4,472 | $1,004 | $2,386 |
| Washington | $5,872 | $1,269 | $2,663 |
| Wisconsin | $6,128 | $1,148 | $2,373 |
| West Virginia | $5,603 | $1,351 | $2,649 |
| Wyoming | $4,604 | $1,384 | $2,421 |
Car insurance cost for a 16-year-old male
Males age 16 pay, on average, $7,483 for their own full coverage policy. That's about $920 more than their female counterparts. You can compare rates for a male 16-year-old with his own policy to that of being added to his parents.
| State | Teen Policy | Parent Policy | Parents' Policy with Teen Added |
|---|---|---|---|
| Alaska | $6,531 | $1,318 | $3,710 |
| Alabama | $7,654 | $1,479 | $3,252 |
| Arkansas | $8,237 | $1,550 | $3,361 |
| Arizona | $7,376 | $1,533 | $3,862 |
| California | $8,398 | $2,018 | $4,933 |
| Colorado | $8,288 | $1,733 | $3,485 |
| Connecticut | $11,471 | $1,914 | $5,611 |
| DC | $9,383 | $1,690 | $3,816 |
| Delaware | $9,165 | $1,736 | $3,570 |
| Florida | $9,456 | $2,502 | $5,452 |
| Georgia | $8,861 | $1,638 | $4,045 |
| Hawaii | $1,547 | $1,287 | $1,364 |
| Iowa | $4,957 | $1,054 | $2,490 |
| Idaho | $6,304 | $1,105 | $2,550 |
| Illinois | $6,427 | $1,208 | $2,935 |
| Indiana | $6,801 | $1,237 | $2,811 |
| Kansas | $6,661 | $1,408 | $2,830 |
| Kentucky | $10,711 | $1,682 | $3,775 |
| Louisiana | $12,702 | $2,547 | $6,044 |
| Massachusetts | $5,443 | $1,469 | $3,445 |
| Maryland | $7,499 | $1,615 | $3,376 |
| Maine | $4,990 | $879 | $2,320 |
| Michigan | $14,691 | $2,900 | $5,919 |
| Minnesota | $6,329 | $1,233 | $2,821 |
| Missouri | $7,292 | $1,350 | $2,961 |
| Mississippi | $7,317 | $1,400 | $2,946 |
| Montana | $6,383 | $1,530 | $2,235 |
| North Carolina | $3,452 | $1,150 | $2,738 |
| North Dakota | $6,519 | $1,155 | $2,417 |
| Nebraska | $5,979 | $1,230 | $2,315 |
| New Hampshire | $7,536 | $1,159 | $3,011 |
| New Jersey | $7,269 | $1,595 | $4,371 |
| New Mexico | $8,305 | $1,387 | $3,290 |
| Nevada | $9,996 | $1,905 | $4,903 |
| New York | $6,522 | $1,777 | $4,107 |
| Ohio | $5,743 | $997 | $2,104 |
| Oklahoma | $8,617 | $1,812 | $4,388 |
| Oregon | $8,052 | $1,504 | $3,715 |
| Pennsylvania | $5,715 | $1,503 | $3,234 |
| Rhode Island | $11,774 | $1,939 | $5,388 |
| South Carolina | $6,886 | $1,653 | $3,768 |
| South Dakota | $7,323 | $1,226 | $2,478 |
| Tennessee | $9,068 | $1,214 | $3,287 |
| Texas | $7,965 | $1,618 | $3,968 |
| Utah | $7,102 | $1,267 | $2,855 |
| Virginia | $5,154 | $929 | $2,378 |
| Vermont | $5,423 | $1,004 | $2,712 |
| Washington | $6,501 | $1,269 | $2,840 |
| Wisconsin | $7,278 | $1,148 | $2,723 |
| West Virginia | $6,544 | $1,351 | $3,030 |
| Wyoming | $6,049 | $1,384 | $2,902 |
How much does it cost to add a 16-year-old to car insurance?
When it comes to car insurance for young drivers, most parents take the easier and far more common approach of adding a teen to their policy. For one thing, it's likely to be much cheaper than getting their teen a separate policy.
Insurers base premiums on several factors, including the experience and driving record of the policyholder. A 16-year-old won't have that, which means higher rates.
As Gusner points out, the teen won't be eligible for rate reductions the parent may qualify for, including multi-vehicle, multi-policy and loyalty discounts. Still, adding a 16-year-old driver to your policy means a significant hike in your rates.
Every situation is different, but to get an idea of what you can expect to pay, CarInsurance.com compared rates in 10 ZIP codes in each state. The family profile we used owned a 2017 Honda Accord driven by a 45-year old man buying full coverage. Then we added a 16-year old teen to the policy. Here's what happened:
- The average household's car insurance bill rose 118 percent to add a 16-year-old teen.
- A teenage boy was more expensive. The average bill rose 129 percent, compared with 107 percent for teenage girls.
Though adding a teen to a parent policy is cheaper than the teen having his or her own separate policy, the cost of adding a teen driver can still be high. Below are the average annual costs to add a 16-year-old boy or girl to your coverage.
| Driver Age 16 | Cost to Add to Parent Policy Full Coverage | Cost to Add to Policy State Minimum |
|---|---|---|
| Female | $1,593 | $651 |
| Male | $1,934 | $769 |
Every situation is different, but to get an idea of what you can expect to pay, CarInsurance.com compared rates in 10 ZIP codes in each state. The family profile we used owned a 2017 Honda Accord driven by a 45-year old man buying full coverage. Then we added a 16-year old teen to the policy. Here's what happened:
The average household's car insurance bill rose by about 118% to add a 16-year-old teen.
A teenage male was more expensive. The average bill rose 129%, compared with 107% for teenage females.
How much you save by adding a 16-year-old to your insurance vs. teen's own policy
You'll see in the chart below how much it costs to add a teen driver to a parent policy and how much you save doing so:
| Driver Age 16 | Teen Own Policy Rate | Parent Policy with Teen | Savings for Adding to Parent Policy Versus Teen Own Policy |
|---|---|---|---|
| Female | $6,562 | $3,086 | $3,476 |
| Male | $7,483 | $3,428 | $4,055 |
Insurers base premiums on several factors, including the experience and driving record of the policyholder. A 16-year-old won't have that, which means higher rates.
Also, as CarInsurance.com Senior Consumer Analyst Penny Gusner points out, the teen won't be eligible for rate reductions the parent may qualify for, including multi-vehicle, multi-policy and loyalty discounts. Still, adding a 16-year-old driver to your policy means a significant hike in your rates.
Cheapest car insurance for 16-year-olds
Below you'll see how major carriers compare on rates when you add a teen driver age 16 to your coverage. For this scenario, Progressive, United, Farmers and Geico were the cheapest among insurance companies we surveyed for adding a female. Progressive, Farmers and Geico were cheapest for adding 16-year-old male motorists.
Parent policy with female, age 16
| Company | Parent Policy with Female, Age 16 Added |
|---|---|
| Progressive | $989 |
| United Financial | $1,204 |
| Farmers | $1,932 |
| Geico | $2,089 |
| 21st Century Centennial | $2,209 |
| Allied | $2,306 |
| Nationwide | $2,383 |
| Mountain Laurel | $2,431 |
| Mid-Century Ins Co | $2,909 |
| State Farm | $3,022 |
| 21st Century Centennial | $4,268 |
Parent policy with male, age 16
| Company | Parent Policy with Male, Age 16 Added |
|---|---|
| Progressive | $1,430 |
| Farmers | $1,944 |
| Geico | $2,282 |
| Nationwide | $2,383 |
| 21st Century Centennial | $2,450 |
| Mountain Laurel | $2,749 |
| Allied | $2,754 |
| Mid-Century | $3,066 |
| State Farm | $3,758 |
| Allstate | $5,005 |
| Victoria | $6,174 |
What's the average annual car insurance rates for a 16-year-old driver with own policy?
If your teen is buying her or his own policy, Concord, Liberty Mutual, Geico and Erie came in with the lowest female rates for full coverage. But you can also sort the columns for state minimum and mid-level liability policies in the table below.
Teen girl, age 16
| Company | State Minimum | Liability Only - 50/100/50 | Full Coverage 100/300/100 |
|---|---|---|---|
| Concord | $788 | $831 | $2,003 |
| Liberty Mutual | $561 | $660 | $2,191 |
| Geico | $1,026 | $1,174 | $2,570 |
| Erie | $775 | $908 | $2,685 |
| Texas Farm Bureau | $872 | $964 | $2,734 |
| Owners Insurance | $924 | $1,046 | $2,866 |
| USAA | $1,156 | $1,569 | $2,956 |
| MMG | $1,168 | $1,184 | $3,353 |
| Mississippi Farm Bureau | $1,276 | $1,425 | $3,426 |
| New Jersey Manufacturers | $1,381 | $1,668 | $3,439 |
| North Carolina Farm Bureau | $1,185 | $1,308 | $3,443 |
| State Farm | $1,449 | $1,671 | $3,882 |
| New York Central | $1,858 | $2,084 | $4,053 |
| Nationwide | $2,036 | $2,170 | $4,090 |
| Depositors | $1,836 | $1,897 | $4,451 |
| Safeco | $4,378 | $3,818 | $4,704 |
| Allied | $3,243 | $3,729 | $4,809 |
| Progressive Southeastern Ins Co | $1,640 | $1,795 | $4,858 |
| Louisiana Farm Bureau | $1,669 | $2,152 | $4,909 |
| Colonial | $2,278 | $2,387 | $4,941 |
| United Financial | $1,379 | $1,927 | $5,020 |
| Arbella | $1,680 | $2,130 | $5,184 |
| Travelers | $2,616 | $2,958 | $5,270 |
| Oklahoma Farm Bureau | $1,488 | $1,580 | $5,296 |
| Safety Insurance | $1,839 | $2,266 | $5,438 |
| Kentucky Farm Bureau | $1,354 | $1,505 | $5,678 |
| Allstate | $2,357 | $2,633 | $6,162 |
| Amco | $3,000 | $3,499 | $6,383 |
| Farmers | $3,674 | $3,910 | $6,676 |
| Safeway | $3,924 | $4,167 | $6,761 |
| AAA Texas County | $3,048 | $3,315 | $7,777 |
| Mid Century | $4,438 | $4,823 | $7,990 |
| Metropolitan | $2,101 | $2,208 | $8,115 |
Boy, age 16
For male drivers, age 16 on their own, Concord, Liberty Mutual, Geico, USAA and Erie are among the national carriers with the cheapest car insurance rates.
| Company | State Minimum | 2 - Liability Only - 50/100/50 | Full Coverage - 100/300/100 |
|---|---|---|---|
| Concord | $864 | $912 | $2,188 |
| Liberty Mutual | $561 | $660 | $2,191 |
| Geico | $985 | $1,131 | $2,561 |
| Texas Farm Bureau | $1,010 | $1,116 | $3,272 |
| USAA | $1,218 | $1,666 | $3,343 |
| North Carolina Farm Bureau | $1,185 | $1,308 | $3,443 |
| Mississippi Farm Bureau | $1,253 | $1,400 | $3,459 |
| Erie | $1,188 | $1,365 | $3,518 |
| New Jersey Manufacturers | $1,408 | $1,715 | $3,768 |
| MMG | $1,464 | $1,485 | $4,050 |
| Owners | $1,369 | $1,550 | $4,229 |
| State Farm | $1,782 | $2,058 | $4,773 |
| New York Central Mutual | $2,167 | $2,446 | $4,793 |
| Progressive | $1,640 | $1,795 | $4,858 |
| Safeco | $4,968 | $4,311 | $5,126 |
| Arbella | $1,680 | $2,130 | $5,184 |
| Nationwide | $3,016 | $2,937 | $5,244 |
| Depositors Insurance | $2,170 | $2,257 | $5,411 |
| Safety Insurance | $1,839 | $2,266 | $5,438 |
| Allied | $3,504 | $4,138 | $5,721 |
| United Financial | $1,551 | $2,176 | $6,057 |
| Colonial | $2,954 | $3,099 | $6,379 |
| Louisiana Farm Bureau | $2,276 | $2,936 | $6,599 |
| Travelers | $3,508 | $3,982 | $6,769 |
| Kentucky Farm Bureau | $1,636 | $1,818 | $6,962 |
| Allstate | $3,185 | $3,715 | $6,973 |
| Farmers | $3,672 | $4,085 | $7,255 |
| Amco | $3,444 | $4,018 | $7,707 |
| Safeway Insurance | $4,651 | $4,940 | $8,281 |
| Oklahoma Farm Bureau | $2,463 | $2,614 | $8,291 |
| Mid Century | $4,640 | $5,030 | $8,481 |
| AAA Texas County | $3,352 | $3,646 | $8,701 |
| Metropolitan | $2,205 | $2,321 | $9,322 |
Car insurance for 16-year old: state minimum coverage
Each state has minimum car insurance requirements that you must have to drive legally. This level of coverage is typically the cheapest, but it also provides limited protection. In most states, buying just the required coverage means your insurance will pay for others' injuries and car damage, but not for your own injuries or car repairs.
In the charts below, you'll see how much minimum coverage costs, on average, per year in each state, for a teen buying his or her own policy.
Car insurance for a 16-year-old girl : state minimum coverage
| State | Teen Policy Rate | Parents' Policy | Parents' Policy with Teen Added |
|---|---|---|---|
| Alaska | $1,647 | $353 | $1,060 |
| Alabama | $2,498 | $465 | $1,077 |
| Arkansas | $2,549 | $483 | $1,119 |
| Arizona | $2,227 | $489 | $1,194 |
| California | $1,961 | $557 | $1,148 |
| Colorado | $2,658 | $529 | $1,058 |
| Connecticut | $4,719 | $866 | $2,290 |
| DC | $3,358 | $676 | $1,373 |
| Delaware | $3,415 | $830 | $1,551 |
| Florida | $3,314 | $1,030 | $1,986 |
| Georgia | $2,661 | $578 | $1,404 |
| Hawaii | $515 | $420 | $440 |
| Iowa | $1,470 | $329 | $790 |
| Idaho | $2,018 | $389 | $873 |
| Illinois | $2,308 | $460 | $1,111 |
| Indiana | $2,180 | $442 | $958 |
| Kansas | $2,090 | $441 | $930 |
| Kentucky | $3,326 | $489 | $1,204 |
| Louisiana | $3,536 | $729 | $1,853 |
| Massachusetts | $2,122 | $556 | $1,370 |
| Maryland | $2,920 | $772 | $1,436 |
| Maine | $1,722 | $351 | $756 |
| Michigan | $6,595 | $1,557 | $2,798 |
| Minnesota | $2,472 | $555 | $1,177 |
| Missouri | $2,273 | $428 | $945 |
| Mississippi | $2,580 | $417 | $981 |
| Montana | $2,022 | $367 | $628 |
| North Carolina | $1,640 | $491 | $1,257 |
| North Dakota | $1,714 | $342 | $668 |
| Nebraska | $1,892 | $390 | $706 |
| New Hampshire | $2,779 | $497 | $1,185 |
| New Jersey | $2,810 | $791 | $1,868 |
| New Mexico | $2,589 | $443 | $1,058 |
| Nevada | $3,113 | $544 | $1,471 |
| New York | $2,256 | $764 | $1,594 |
| Ohio | $1,959 | $382 | $737 |
| Oklahoma | $2,460 | $462 | $1,133 |
| Oregon | $3,965 | $785 | $1,887 |
| Pennsylvania | $1,976 | $479 | $1,059 |
| Rhode Island | $3,997 | $745 | $1,931 |
| South Carolina | $2,043 | $491 | $1,138 |
| South Dakota | $1,573 | $279 | $562 |
| Tennessee | $2,983 | $436 | $1,156 |
| Texas | $2,407 | $563 | $1,360 |
| Utah | $2,696 | $518 | $1,099 |
| Virginia | $1,569 | $355 | $821 |
| Vermont | $1,441 | $325 | $782 |
| Washington | $2,384 | $448 | $1,102 |
| Wisconsin | $2,144 | $378 | $816 |
| West Virginia | $2,127 | $538 | $1,051 |
| Wyoming | $1,263 | $320 | $587 |
Car insurance for a 16-year-old boy : state minimum coverage
| State | Teen Policy Rate | Parents' Policy | Parents' Policy with Teen Added |
|---|---|---|---|
| Alaska | $1,893 | $353 | $1,161 |
| Alabama | $2,726 | $465 | $1,148 |
| Arkansas | $2,864 | $483 | $1,174 |
| Arizona | $2,605 | $489 | $1,381 |
| California | $2,330 | $557 | $1,349 |
| Colorado | $2,897 | $529 | $1,153 |
| Connecticut | $5,412 | $866 | $2,587 |
| DC | $3,917 | $676 | $1,571 |
| Delaware | $3,892 | $830 | $1,734 |
| Florida | $3,655 | $1,030 | $2,128 |
| Georgia | $2,984 | $578 | $1,603 |
| Hawaii | $515 | $420 | $440 |
| Iowa | $1,641 | $329 | $869 |
| Idaho | $2,297 | $389 | $970 |
| Illinois | $2,589 | $460 | $1,229 |
| Indiana | $2,579 | $442 | $1,057 |
| Kansas | $2,259 | $441 | $1,003 |
| Kentucky | $3,713 | $489 | $1,326 |
| Louisiana | $4,112 | $729 | $2,063 |
| Massachusetts | $2,122 | $556 | $1,370 |
| Maryland | $3,397 | $772 | $1,602 |
| Maine | $1,934 | $351 | $961 |
| Michigan | $6,577 | $1,557 | $2,801 |
| Minnesota | $2,790 | $555 | $1,253 |
| Missouri | $2,558 | $428 | $1,056 |
| Mississippi | $2,716 | $417 | $1,057 |
| Montana | $2,005 | $367 | $628 |
| North Carolina | $1,633 | $491 | $1,257 |
| North Dakota | $1,924 | $342 | $734 |
| Nebraska | $2,112 | $390 | $807 |
| New Hampshire | $3,157 | $497 | $1,306 |
| New Jersey | $2,968 | $791 | $2,008 |
| New Mexico | $2,903 | $443 | $1,172 |
| Nevada | $3,484 | $544 | $1,682 |
| New York | $2,722 | $764 | $1,767 |
| Ohio | $2,228 | $382 | $816 |
| Oklahoma | $2,795 | $462 | $1,364 |
| Oregon | $4,157 | $785 | $2,018 |
| Pennsylvania | $1,955 | $479 | $1,059 |
| Rhode Island | $4,668 | $745 | $2,257 |
| South Carolina | $2,270 | $491 | $1,210 |
| South Dakota | $1,784 | $279 | $641 |
| Tennessee | $3,373 | $436 | $1,287 |
| Texas | $2,797 | $563 | $1,481 |
| Utah | $2,990 | $518 | $1,228 |
| Virginia | $1,858 | $355 | $904 |
| Vermont | $1,671 | $325 | $865 |
| Washington | $2,630 | $448 | $1,204 |
| Wisconsin | $2,469 | $378 | $909 |
| West Virginia | $2,424 | $538 | $1,185 |
| Wyoming | $1,561 | $320 | $675 |
*CarInsurance.com commissioned Quadrant Information Services to run auto insurance rates for a 2017 Honda Accord LX for 10 ZIP codes in each state using six large carriers -- Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm. (In cases where one of the insurers doesn't return a rate, another major carrier in that state is substituted.)
Average cost of car insurance for 16-year-old
The average car insurance rate for a 16-year-old who has his or her own policy is as follows per year:
- State minimum coverage: $2,631
- Liability limits of 50/100/50: $2, 957
- Full coverage: $7,023
What you pay will vary, depending on your insurer, whether or not the teen is added to a parent's policy, the state you live in, the type of car you drive and coverage limits, among other factors.
Car insurance discounts for 16-year-olds
Despite the high rates you pay for young drivers, there are ways to trim costs. Car insurance discounts for teen drivers vary by state and insurer but may include:
- Driver education: Completing a driver education course, if not required under state law as part of the licensing process, may provide a 5 percent discount.
- Good student: Drivers who maintain a 3.0 or "B" average may get a discount of up to 15 percent.
- Parent-teen driving contract: Teens who sign a contract with their parents that outlines rules to follow when driving -- for instance, limited hours and numbers of passengers -- may get up to a 5 percent discount.
Adding a teen to your auto insurance policy will make your premiums skyrocket. Your teen might be the best driver around, but until he or she proves that with years of accident-free driving, you can expect to pay more for insurance.
However, there are ways to lessen the pain. One key is to shop around to find the best auto insurance rates.
There's a bit of good news. If your teen drives accident-free, you can expect your insurance premiums will decrease over the years. Rates will likely fall as the teen gains more experience. Average car insurance rates decline when drivers hit age 26 significantly.
Check out the other teen driver pages on CarInsurance.com:
- Car insurance for a 17-year-old
- Car insurance for an 18-year-old
- Car insurance for a 19-year-old
Other ways to save on car insurance for your teen
Good-student discount
Regardless of your age, you can trim costs by qualifying for car insurance discounts that match your driver profile.
For younger drivers, a good student discount can save 18%, on average, though it can be much higher, up to 23%.
Clean driving record
One of the most impactful ways to lower car insurance costs for your teen is to require that they maintain a clean driving record. Insurance companies already see teens as inexperienced, high-risk drivers and traffic violations or accidents will not help to change that perspective.
Whether it is speeding, an accident, reckless driving or even distracted driving, you will see an increase in insurance rates. This is a great time to teach your teen the responsibilities of safe driving so you can eventually enjoy lower car insurance rates and most importantly, keep your teen safe.
Give second thought to filing a claim
If your teen is in a minor at-fault accident, it is important to assess the situation before filing a claim. Find out how much your insurance will increase if you file a claim for an at-fault accident. If the amount you'd pay out in deductible and the amount of the rate increase exceed the cost of the repair, it will be cheaper to avoid filing the claim.
Recommendations and FAQs for "Sweet 16" drivers
Why are teen car insurance rates higher?
Car insurance companies base rates on risk. They take into account a person's driving experience, claims history, location, type of vehicle and other factors.
A driver with a risky (or a limited) driving record will pay more than a motorist who hasn't filed a claim in a decade.
There are fewer teen driver-related fatalities now than in the 1990s. That's especially true for younger teen drivers.
However, car crashes are still the number one killer of U.S. teens. They are also more likely to get into accidents than any other age group. In the United States, the fatal crash rate per mile driven for 16 to 19-year-olds is nearly three times the rate for drivers ages 20 and over. Risk is highest at ages 16-17, according to the Insurance Institute for Highway Safety/Highway Loss Data Institute.
Does a 16-year-old have to have full coverage?
There is no law requiring teen drivers to have full coverage. However, if the car being driven is leased or financed, the lender will mandate that you have full coverage, including comprehensive and collision insurance.
To drive legally, you only need state required liability insurance, which pays for damage and injuries of others in accidents you cause. It doesn't cover your own car. However, because teens are inexperienced, and as a demographic, have more accidents than experienced drivers, it's wise to have full coverage on the car your teen drives.
Insurance applies to the car, not the driver. That means the coverage on the car the teen is driving will apply to accidents and damage caused by the teen.
Gusner recommends a full coverage policy of the following:
- $100,000 for injury liability for one person, to pay for medical bills for those injured in an accident you cause
- $300,000 for all injuries in one accident that's your fault
- $100,000 for property damage you cause, for instance, to repair a car you hit
- Collision insurance, to pay for damage to your car regardless of fault in an accident
- Comprehensive, to pay for damage to your car from hail, flooding, fire, vandalism, animal strikes, and to replace it if stolen
It really is worth the extra money to be fully protected during the time your teen is driving your car. Otherwise, you can be on the hook to pay out of your own pocket for even minor accidents that can exceed a bare-bones policy. The cost to jump from state minimum to full coverage with a 16-year-old daughter on your policy is about $1,900, but that's just $158 a month for peace of mind. For a 16-year-old son, the cost to buy full coverage instead of state minimum is $2,178, or $182 a month.
So, when do you add a teen to your policy? Start the process when he or she has a learner's permit.
"Begin when your child is first permitted to practice driving by contacting your insurer to see if you need to add the teen now or when fully licensed," she says.
Gusner adds that the only time it might be wise to get teens a separate policy is when they've had moving violations or accidents, which would hike premiums on the family coverage. Instead, think about getting a teen an older car, which is cheaper to insure, and buying a separate policy with only high liability protection.
What are the rules for a 16-year-old driver?
Most states have laws that restrict where and when 16-year-olds can drive. These stipulations are usually called Graduated Driver License (GDL) laws and apply just to drivers under age 18. GDL laws vary by state, with some states having stringent GLD laws and others having very lenient ones. Over time, you "graduate" from a provisional or restricted license you get as a teen, to a standard license with no restrictions. GDL laws typically include provisions on the following:
- Limiting drive time to day time hours
- Requiring a passenger who is over a certain age to be in the car
- Not allowing passengers under a certain age to be in the car
- Banning the use of cellphones for both calls and texting
- Limiting destinations to work and school
For more details on GDL laws and why they are important, read our guide on the most and least dangerous states for teen drivers.
Can a 16-year-old have a car in their name and insure it?
Gusner says that in most states a 16-year-old can own a car and insure it -- but only if a parent or legal guardian co-signs for both the vehicle's title and insurance coverage. "Even if you're under the age of majority, which is 18 in most states, you can buy and insure a car," Gusner explains. "However, in general, minors cannot enter into a contract, so they cannot sign for auto insurance by themselves. Depending on state laws, a teen may not be able to buy a car either, since that is a sales contract, without an adult signing on as well." While most states consider 16 to be a legal age to own a car, there are exceptions. Gusner points out that a juvenile must be 17 in South Carolina to buy a vehicle, again with a parent or guardian signing on. She also notes that Ohio requires a parent to file a minor consent form with the state's bureau of motor vehicles if anyone under 18 wants the title to a vehicle.
Do you need insurance to drive with a learner's permit?
A novice driver needs insurance but not under his or her own policy. Usually, the policy of the vehicle's owner (typically the parent or guardian who accompanies the teen while he or she learns) should be enough. But parents need to immediately add their teen drivers to their policies once the teens are licensed.
Most insurers will wait until the teen is licensed to make you add him, but do check beforehand because some will make you add the child at that point (when he has a permit) and start paying for him as a driver, Gusner says.
Do you need insurance to get a license?
If you're driving, most states require you to have minimum liability insurance. But a 16-year-old hoping to get his first license only has to show that his vehicle's owner already has coverage.
A teen driver faces driving restrictions before and after receiving a driver's license. States have varying levels of Graduated Driving License (GDL) laws.
Common GDL laws include:
- Learners' permit
- Minimum number of supervised driving
- Limited unsupervised driving, such as at night
- Cell phone/texting ban
- Passenger restrictions
Some states have stronger GDL laws. For instance, New Jersey is the only state the requires a novice driver decal for drivers under 21 who don't have full-privilege licenses yet.
Safe-driving advocates, such as the Governor's Highway Safety Association, say strong GDL laws save lives.
What's the best insurance for teenage drivers?
When insuring your 16-year-old, Gusner says first focus on liability protection. That pays for damages your teen may cause to property or people in an accident. And don't think that state-minimum coverage is enough. Medical costs can quickly escalate if there are major physical injuries. Bills can also go sky-high with property damages.
Just imagine the costs if the accident involves an expensive vehicle or other significant property. You'd have to pay out-of-pocket once those costs exceeded your liability limits.
Besides raising your basic liability amount, consider purchasing an umbrella policy, which increases liability protection after those basic limits are met. An umbrella with $1 million or more of protection may be a smart move.
Comprehensive and collision coverage is required if you finance your vehicle. However, you decide whether to have those optional protections if the car is already paid off. If you opt for comprehensive and collision, consider higher deductibles to lower your rate. Of course, you'd then have to pay for minor repairs following an accident.
What are the best cars for a 16-year-old?
There are many things to consider, with safety the most important. The Insurance Institute for Highway Safety (IIHS) some basic principles when buying a car for a teen:
- Try to get Electronic Stability Control (ESC). This feature, which helps a driver maintain control on curves and slippery roads, is about as good at reducing risks as safety belts, says the IIHS
- Avoid very high horsepower. "Vehicles with more powerful engines can tempt (young drivers) to test the limits," says the IIHS.
- Look for cars with the best safety reviews from the IIHS and National Highway Traffic Safety Administration.
CarInsurance.com offers its own buying suggestions, including a detailed list of the cheapest cars to insure for teen drivers, which are models under $15,000 with good safety ratings.
Final thoughts on car insurance for a 16-year-old
Being the parent of a teen driver is stressful and expensive. Adding your teen to your auto insurance policy is a great way to save money, even if it is tempting to get them their own policy.
Make sure you are providing exemplary driving behavior, assure that your children are following GDL laws and shop for car insurance at each renewal to make sure you're getting the best deal. These things will ensure your teen understands how to drive safely and will result in you paying the least amount possible for their car insurance.
Read More :
- Can 16-year-olds drive alone on a learner's permit in Florida?
- Can you drive alone with your driver's permit in New York?
Car Insurance for a 20 Year Old New Driver
Source: https://www.carinsurance.com/Articles/car-insurance-16-year-old.aspx