The best auto insurance for 16-year-olds can be as low as $284 per month on average for individual full-coverage policies. However, rates from major providers can exceed $1,000 per month. Becoming a licensed driver at 16 opens up a whole new world of possibilities and freedom, but it’s also expensive.
The Home Media Reviews team has reviewed dozens of provider rates for 16 year olds, and we recommend comparing provider quotes to find the right one. cheapest car insurance for your situation.
The cheapest car insurance for 16 year olds
The average cost of auto insurance for a 16 year old with their own comprehensive insurance policy is $6,912 per year Where $576 per month. However, some companies are better choices than others for cheap car insurance.
According to our estimates, Erie Insurance is the cheapest regional insurance company for 16 year olds. It offers average rates of $284 per month Where $3,410 per year for young people aged 16 with individual insurance. State Farm is the cheapest national supplier, with an average monthly rates of $345 and average annual rates of $4,146.
Below, you can see how 11 popular car insurance companies rank based on cost.
*Auto insurance estimates are based on comprehensive insurance policies with $50,000 bodily damage per person, $100,000 bodily damage per accident, $50,000 property damage per accident and a $500 deductible for collision coverage and comprehensive coverage.
Best car insurance for 16 year olds
Our top five picks for the best auto insurance for 16-year-olds offer lower-than-average rates, plus discounts that apply to teens and families.
*Overall rating applies to a standard driving profile, while ranking order applies to 16-year-old drivers.
#1: State Farm
If you’re looking for the best car insurance for 16 year olds, it’s a good idea to get a quote from State Farm. This provider not only offers low average rates for 16 year olds, but also offers great programs to save even more money.
State Farm’s Drive Safe & SaveMT tracks driving habits and can provide discounts of up to 30%. Additionally, drivers under the age of 25 can participate in the Steer Clear® training program, which offers rewards and discounts upon completion.
Learn more in our comprehensive State Farm Insurance review.
#2 Erie Insurance
According to our rate estimates, Erie Insurance is the cheapest car insurance for 16 year olds. However, it is only available in 12 states and Washington DC. If you’re in any of the following locations, get a quote from Erie when you shop:
Geico is another affordable company for 16 year olds. Geico’s rate estimates average $372 per month, which is about 35% cheaper than the industry average of $576 per month. Geico also offers helpful discounts for young drivers who have good grades or are taking a driving course.
Read more in our Geico insurance review.
Nationwide car insurance rates for 16 year olds are about 34% cheaper than the national average for this age group. Nationwide SmartRide® program awards discounts based on driving habits, while its SmartMiles® program sets your rate based on mileage. The company also offers discounts for good students and accident-free drivers.
Find out more in our nationwide insurance review.
#5 United States of America
USAA offers average fares about 31% cheaper than the national average for 16-year-olds and has an excellent reputation for customer service. USAA is only available to service members and their immediate family. Teens can join a family policy or qualify on their own if their parents are already USAA members.
Learn more in our USAA Insurance Review.
Why is auto insurance so expensive for a 16 year old?
Car insurance companies base customer rates on the risk of the driver filing a claim. 16-year-olds don’t have a lot of driving experience and are more likely to have accidents. Car insurance companies charge higher prices to compensate for this risk.
According to the AAA Road Safety Foundation, in 2015, 16- and 17-year-olds were involved in almost twice as many accidents like 18- and 19-year-olds in the US Additionally, 16- and 17-year-olds were involved in more than four times as many crashes as drivers in the 30-39, 40-49, and 50-59 age groups. Here are the details of the foundation study.
The average cost of comprehensive insurance is closely related to the accident rate by age. Below you can see that 16-year-olds pay about four times what 45-year-old drivers pay on average.
How to reduce car insurance costs
With rates so high for young drivers, anything you can do to reduce car insurance costs assistance. Here are five tips to remember.
Add your 16-year-old child to family insurance
The best way to save on young driver insurance is to add them to a parent’s policy. You can save hundreds of dollars a year by doing this. You’ll still pay higher insurance premiums overall, but it won’t be as expensive as having the 16-year-old on his own policy.
Reduce your coverage amounts
If you’re comfortable, you can reduce your coverage amounts to save money on car insurance. You might even drop collision damage waiver and Back to back insurance and go with the minimum Liability coverage required in your state.
Make sure you can afford to repair your car if you or your teen damages it or if someone without sufficient insurance causes an accident, as you would not be covered in these situations. And if a car is financed, the lender will likely require you to have comprehensive insurance.
Shop the best car insurance discounts for 16 year olds
Here are a few car insurance discount to look for when adding a 16 year old to an existing policy or starting an individual policy:
- Good student discount: Students can save money on their car insurance policies by maintaining good grades – usually at least a B average.
- student at school: Families with students who do not take a vehicle to the university can benefit from discounts on policies. This usually requires the student to go to school at least 100 miles from home.
- Driver training discount: Some companies offer discounts to students taking driver training courses. This may vary by state.
- Discount based on usage: Programs like Progressive Snapshot® and Drive Safe & Save from State FarmMT provide discounts based on good driving habits. Teenagers who drive safely and don’t get a lot of miles in their car can save money with these programs.
- Multi-car discount: Families with teenagers who drive their own vehicle can save a lot thanks to this reduction.
Although not a discount, consider a policy with forgiveness in the event of an accident. A single car accident can raise rates by thousands of dollars a year for a teenager. Some companies offer this supplement to maintain the same cost of auto insurance after an at-fault accident.
Choose the right car
The type of car a 16-year-old driver can influence his rates. Generally speaking, car insurance rates are higher for luxury vehicles and sports cars. To save money, go for a reliable and affordable car with good safety ratings.
Keep an eye on driving habits
Even a small violation like speeding can increase the cost of car insurance for teens, so the best thing they can do is keep a clean driving record. Many providers offer safe driver discounts to those who do.
10 Cheapest States for 16-Year-Olds
You might not be moving just to save on car insurance, but it’s good to know where to find the best rates for 16-year-olds. Below are the 10 cheapest states for comprehensive car insurance for 16 year olds.
*Age has no direct effect on car insurance prices in Hawaii.
10 most expensive states for 16 year olds
There are some states where individual full coverage auto insurance policies for 16 year olds have astronomical rates. Michigan, Connecticut and Louisiana top the list.
The cheapest car insurance for 16-year-olds in every state
In our analysis, we compared the top 10 providers in each state by age and found the cheapest for 16 year olds. You may want to consider getting a quote from one of the companies below depending on where you live.
Shop for the best auto insurance for 16 year olds
Each auto insurance company rates risk differently, so you’ll find different rates from various providers. We recommend comparing at least three auto insurance quote when you shop.
Because consumers rely on us to provide unbiased and accurate information, we’ve created a comprehensive rating system to formulate our ranking of the best car insurance companies. We’ve collected data on dozens of car insurance providers to score companies on a wide range of ranking factors. The end result was an overall score for each provider, with insurers who scored the most points at the top of the list.
Here are the factors taken into account by our assessments:
- Cost (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage (30% of total score): Companies that offer a variety of insurance coverage choices are more likely to meet consumer needs.
- Reputation (15% of total score): Our research team considered market share, industry expert ratings, and years in business to assign this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and fewer eligibility criteria scored higher in this category.
- Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by JD Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own customer analysis.
*Data correct at time of publication