Average Cost of Car Insurance for 16-Year-Olds

How a lot is automobile insurance coverage for teenagers?

Like we have mentioned, teen car insurance is expensive. The youthful the motive force, the dearer the automobile insurance coverage. Younger drivers are much more more likely to get into automobile accidents than older drivers. The chance is highest with 16-year-olds, who’ve a crash fee twice as excessive as 18- and 19-year-olds. That threat is mirrored within the common automobile insurance coverage charges for youngsters:

  • 16-year-old – $3,989
  • 17-year-old – $3,522
  • 18-year-old – $3,148
  • 19-year-old – $2,178
  • 20-year-old – $1,945

Charges not solely rely upon age, however the firm you select. This desk reveals the annual fee a teen will obtain in California.

CompanyFemaleMaleAverageCompany 1$2,646$2,961$2,804Company 2$2,607$3,472$3,040Company 3$5,613$8,966$7,290Company 4$2,640$3,080$2,860Company 5$2,642$3,454$3,048Company 6$2,030$2,064$2,047Average$3,030$3,999$3,515

Notice: The precise firm names weren’t talked about subsequent to the charges however the corporations are, in no specific order: GEICO, Farmers, State Farm, Progressive, Mercury and AAA.

All 50 states and the District of Columbia now hav

All 50 states and the District of Columbia now have a Graduated Driver’s License (GDL) system, in keeping with the Insurance coverage Institute for Freeway Security (IIHS). GDL applications save lives. A research by the IIHS discovered states with stronger graduated licensing applications had a 30% decrease deadly crash fee for 15- to 17-year olds.

Common auto insurance coverage fee enhance after including a 16-year-old male driver

StateAnnual Premium with out TeenAnnual Premium with Male Teen% Improve
Connecticut $1,726$3,811121%
District of Columbia$1,809$3,750107%
Florida $2,371$5,362126%
Kentucky $1,903$4,524138%
Louisiana $2,654$5,988126%
Massachusetts $1,254$3,193155%
Nebraska $1,316$3,211144%
New Hampshire $1,265$3,162150%
New Jersey $1,908$4,143117%
New Mexico$1,409$3,437144%
New York$2,745$5,26492%
North Carolina$1,380$3,152128%
North Dakota$1,064$2,581143%
Oklahoma $1,846$4,212128%
Oregon $1,271$3,073142%
Pennsylvania $1,533$3,573133%
Rhode Island$2,017$4,888142%
South Carolina $1,548$3,525128%
South Dakota$1,374$2,977117%
Utah $1,417$3,486146%
West Virginia$1,406$3,829172%
Nationwide Common$1,742$4,048132%

Quadrant Data Providers, 2020


Follow protected driving

Some of the dependable methods to maintain insurance coverage prices low is to keep away from accidents. Study concerning the dangers teen drivers face and get suggestions for the right way to stop them. Nationwide’s teen driving resource center provides sensible details about teen determination making, distracted driving, the function of oldsters in teen driving and extra.

Getting the fitting protection that most closely fits your wants is essential for saving money on your teen’s car insurance policy. Study extra about Nationwide’s auto insurance coverage types at present.

How lengthy till these premiums lower?

Premium will increase from insuring a teen driver can appear daunting. Luckily, these fee will increase received’t final without end.

As Adams explains, “If a younger driver avoids accidents and site visitors tickets, their auto fee ought to lower every year till about age 25 or 26, once they turn out to be much less dangerous to an insurer.”

Beneath are the charges at completely different ages to spotlight that charges will decline over time as soon as a teen has some years of protected driving below their belt. 

Take into account, fee decreases are based mostly totally on driving expertise. If a teen begins driving at 18, their fee will seemingly be greater than an 18-year-old who began driving at 16. That mentioned, the older a person will get, the much less dangerous insurers think about them to be behind the wheel.

Do I Have To Add My Teenager To My Insurance coverage?

Sure, you should add all drivers of your autos to your automobile insurance coverage coverage. There’s a unhealthy rumor on the market the place a whole lot of brokers are stating that you just don’t want so as to add younger drivers to your automobile insurance coverage coverage. These brokers state that the younger drivers are coated below the “Permissive Use” clause within the insurance coverage contract. That is fully false and these brokers are organising these folks to have a horrible declare expertise the place issues are coated. Permissive use is for these folks that will drive your automobile that do NOT dwell in your own home and don’t drive your automobile regularly. If somebody lives in your own home or drives your automobile regularly (a minimum of as soon as a month) then they should be added to your coverage as a driver. In lots of instances, if a teenage driver crashes your automobile and they aren’t listed in your coverage as a driver then there wouldn’t be protection!

Common automobile insurance coverage prices for teen drivers by state

The state the place you reside additionally impacts your teen driver auto insurance coverage premium, as illustrated within the desk beneath. Hawaii is the one state that prohibits age as a think about figuring out automobile insurance coverage charges, which makes it the most cost effective state for younger drivers. Florida has the costliest charges for automobile insurance coverage when including a younger driver to their dad and mom’ coverage. These charges are based mostly on the highest insurers within the nation and are for full protection automobile insurance coverage for teenagers added to their dad and mom’ coverage and thus replicate added value and never the full value.

State Age 16 Age 17 Age 18 Age 19
Alabama $2,714 $2,437 $2,136 $1,694
Alaska $2,245 $1,918 $1,630 $1,418
Arkansas $2,711 $2,421 $2,145 $1,701
Arizona $2,704 $2,458 $2,101 $1,813
California $3,744 $3,286 $3,010 $1,823
Colorado $2,936 $2,687 $2,339 $1,879
Connecticut $2,927 $2,578 $2,265 $1,611
Delaware $2,491 $2,135 $1,922 $1,644
Florida $4,343 $4,042 $3,675 $2,728
Georgia $3,007 $2,736 $2,428 $2,023
Hawaii $35 $35 $35 $35
Idaho $2,313 $2,023 $1,197 $974
Illinois $1,954 $1,711 $1,760 $1,561
Indiana $1,537 $1,404 $1,505 $1,180
Iowa $1,705 $1,406 $1,223 $976
Kansas $2,099 $1,878 $1,660 $1,366
Kentucky $3,593 $3,094 $2,673 $2,026
Louisiana $4,333 $3,859 $3,181 $2,448
Massachusetts $1,389 $1,262 $1,708 $1,100
Maryland $2,787 $2,509 $2,276 $1,781
Maine $2,002 $1,850 $1,124 $937
Michigan $3,403 $3,122 $2,735 $2,238
Minnesota $2,217 $1,920 $1,643 $1,383
Missouri $2,192 $1,971 $1,772 $1,443
Mississippi $2,387 $2,019 $1,687 $1,361
Montana $2,298 $2,067 $1,847 $1,476
North Carolina $1,627 $1,487 $869 $237
North Dakota $3,398 $2,930 $1,152 $883
Nebraska $1,735 $1,650 $1,322 $1,051
New Hampshire $2,353 $2,078 $1,429 $1,130
New Jersey $2,035 $1,737 $1,834 $1,568
New Mexico $3,573 $3,182 $1,458 $1,145
Nevada $1,765 $1,078 $2,646 $2,231
New York $1,507 $1,351 $2,819 $1,936
Ohio $1,647 $1,479 $1,314 $1,036
Oklahoma $2,455 $2,170 $1,893 $1,486
Oregon $2,133 $1,851 $1,581 $1,323
Pennsylvania $2,372 $2,206 $1,881 $1,525
Rhode Island $2,927 $2,715 $2,361 $1,742
South Carolina $2,140 $1,873 $1,622 $1,247
South Dakota $1,535 $1,416 $1,251 $1,033
Tennessee $2,116 $1,903 $1,640 $1,313
Texas $2,860 $2,562 $2,298 $1,959
Utah $2,462 $2,120 $1,861 $1,451
Virginia $2,401 $2,248 $1,627 $1,303
Vermont $2,084 $1,840 $1,956 $1,707
Washington $1,935 $1,729 $1,528 $1,103
Washington, D.C. $2,506 $2,235 $1,939 $1,568
Wisconsin $2,276 $2,074 $1,235 $981
West Virginia $1,701 $1,508 $1,775 $1,335
Wyoming $2,071 $1,969 $1,752 $1,341

*Hawaii doesn’t use age as a score issue

How you can save on the price of auto insurance coverage for 16-year-olds

Automobile insurance coverage charges for 16-year-old drivers are very excessive, however there are methods to carry your month-to-month premium down. The perfect factor to do is to be added to a member of the family’s coverage slightly than shopping for your personal.

However there are different methods to get the most cost effective potential automobile insurance coverage for a 16-year-old.

Store round at a number of insurance coverage corporations

Each insurance coverage firm provides completely different costs, and the discrepancy is especially excessive in relation to youngsters — we discovered that going with one insurer over one other can quantity to hundreds of {dollars} saved over the course of a yr.

Nonetheless, the most cost effective insurers for 16-year-old drivers will differ by area. You need to acquire quotes from a number of completely different insurance coverage corporations to be assured you are paying as little as potential.

Discover reductions for 16-year-old drivers

To offset the excessive value of insurance coverage for 16-year-olds, many insurance coverage corporations provide a wide range of discounts focused particularly for younger drivers. Listed below are some frequent deductions to look out for.

Good grades: In the event you’re a full-time highschool or faculty scholar with a sure GPA (usually a “B”/3.0 or higher), you may see a discount in charges. Driving tracker: Many insurance coverage corporations will offer you a telematics driving tracker, which reduces your charges after you have demonstrated that you just drive safely. For instance, it might present that you do not instantly begin or cease, or swerve on the highway. These plug into your automobile’s diagnostic port, or use a cellular app, to trace your habits. Driving class: Sixteen-year-old drivers are more likely to have lately taken driver’s training, however many states can help you take a driver’s training course to mechanically cut back your automobile insurance coverage charges — in New York state, the low cost is 10%. Pupil away from house: This low cost applies extra usually to varsity college students than 16-year-old excessive schoolers, however when you’re greater than 100 miles away from house for college (akin to boarding college), and you do not have a automobile with you, you will often qualify to have your insurance coverage charges decreased. Pay-in-full: You will get a reduction in your automobile insurance coverage from most insurers by paying for your complete plan in full, slightly than breaking the associated fee up by month.

Purchase a automobile that is cheaper to insure

In the event you or your dad and mom are shopping for a brand new or used automobile so that you can drive when you flip 16, one main consideration is how a lot it prices to insure. The worth of automobile insurance coverage varies considerably by automobile mannequin — for instance, we present in our research of the cheapest cars to insure {that a} Honda CR-V, the automobile with the bottom month-to-month charges, is 33% cheaper to insure than a Ford Mustang.

Shopping for a enjoyable or quick automobile — like a Mustang — could appear interesting, nevertheless it’s more likely to be rather more costly to purchase, drive and insure than a automobile like a Honda Civic. Plus, when you do get in an accident, a sports activities automobile will likely be dearer to restore.

Drop complete and collision protection

One of many easiest methods for youngsters to decrease their insurance coverage payments is to cut back the quantity of protection they’re paying for. Essentially the most generally eliminated parts of automobile insurance coverage are comprehensive and collision coverage, which pay for the restore of your personal automobile. Collision covers you in case your automobile is broken in a crash and nobody else is at fault. Complete protection pays for injury brought on by one thing apart from a collision, like vandalism or theft.

Each coverages are optionally available until you’ve a automobile mortgage or lease. Dropping complete and collision protection is mostly a greater thought when your automobile is older and never value as a lot cash. It is because the utmost potential payout of protection — the substitute value of your automobile — is usually lower than the price of protection. Nonetheless, it is best to solely drop these coverages when you can afford to restore or substitute your automobile with out them.

Reductions for teen drivers

Teen drivers and younger adults might be able to decrease their automobile insurance coverage premiums by benefiting from a number of the best car insurance discounts for students and varied different reductions.

Good scholar reductions

Single, full-time college students might be able to get a very good scholar low cost by sustaining a 3.0 or above common. As famous above, Allstate solely requires a 2.7 GPA. The quantity of financial savings and eligibility standards differ by firm, as does how usually the younger driver has to recertify their grades.

Distant scholar reductions

A distant scholar low cost, additionally known as scholar away in school, is one other option to save for college-aged drivers. This low cost usually applies to college students who go to varsity a minimum of 100 miles from house and don’t take a automobile with them.

Driver coaching reductions

Driver coaching applications not solely make teenage drivers safer and extra accountable behind the wheel, however they might additionally lower your expenses on automobile insurance coverage. The necessities and financial savings differ by provider.

Utilization-based program reductions

Most insurance coverage corporations provide a approach for all members of the family to save lots of on automobile insurance coverage with a usage-based program, often known as a telematics program. Telematics applications require a smartphone or plug-in system put in into the automobile to observe driving habits and miles pushed. Sustaining protected driving habits can earn you low cost automobile insurance coverage charges.

Set up anti-theft units

You might save once you set up an anti-theft device within the automobile. Your potential low cost varies based mostly on the kind of system put in and the state during which the automobile is garaged.

Often requested questions on teenage insurance coverage

Do it’s a must to add a teenage driver to your insurance coverage?

Sure, you will have so as to add your teenager to your automobile insurance coverage coverage in the event that they dwell with you and drive your automobile. Some states would require you so as to add your teen driver as an extra insured individual once they get their learner’s allow.

What’s the most cost-effective option to get automobile insurance coverage for a teen?

The most affordable option to get automobile insurance coverage for a teen is by including them to your personal insurance coverage coverage. It isn’t suggested to purchase a teen their very own insurance coverage as a result of it may be very costly. Insurance coverage corporations cost teenagers extra for auto protection than adults as a result of they consider drivers below 25 have a better probability of inflicting accidents.

Ought to I add my 16-year-old to automobile insurance coverage?

Most states require you so as to add your 16-year-old teen to your automobile insurance coverage as quickly as they get their license. It’s necessary in some states, and lots of insurance coverage corporations additionally require it. Even when it’s not necessary, it is at all times a good suggestion to ensure you’re coated by automobile insurance coverage.

How you can get automobile insurance coverage for a teen?

It’s potential for a teen to get automobile insurance coverage with a allow, however most insurance coverage suppliers will embody the permitted teen on their dad or mum’s coverage with out every other formalities. Youngsters ought to get automobile insurance coverage after they obtain their driving allow to remain protected within the occasion of an accident.

How a lot does it value so as to add a 17-year-old to automobile insurance coverage? The common automobile insurance coverage value for a 17-year-old for full protection is $5,836 a yr. Your auto insurance coverage fee will rely upon the place you reside, the protection stage you select, the make and mannequin of your automobile, amongst different components.

The Value of Teen Auto Insurance coverage

Count on your premium to extend once you add your teen to your automobile insurance coverage. In response to Evaluations.com, motorists ages 16 to 19 have greater accident charges than all different drivers. That creates a major threat of a declare for the auto insurance company, which ends up in greater premiums for you.

Insurance coverage.com appeared on the modifications in charges from insurance coverage corporations in 10 completely different zip codes when a 40-year-old man with full protection on a 2019 Honda Accord acquired quotes so as to add a 16-year-old teen driver. The web site discovered that:

  • Households in California had the best fee will increase of greater than 200 %.
  • On common, the price of protection elevated by 152 %.
  • The common enhance was 129 % for a feminine teen and 176 % for a male teen.

Insurance coverage corporations increase charges for teen drivers due to the excessive fee of great crashes amongst drivers ages 16 to 19. Insurance coverage.com experiences that in keeping with the Facilities for Illness Management and Prevention this age group has a 400 % greater accident fee than different age teams. What’s extra, the accident fee for 16-year-old drivers is 200 % greater than drivers aged 18 and 19.

Additionally they report these common annual charges for adolescent drivers:

  • Allstate – $3558
  • Farmers Insurance coverage – $7136
  • GEICO – $1695
  • Nationwide – $2857
  • State Farm – $1928
  • Progressive – $3478

The common general for drivers on this age group is $3442 a yr, which breaks all the way down to a mean fee of $2712 a yr for teen women and $4172 for teen boys, who’ve the best general accident fee of any demographic group.

In one other instance, WalletHub appeared on the change within the worth of a six-month coverage for a 2014 Hyundai Sonata when including a 16-year-old driver to a coverage owned by a 50-year-old dad or mum and located a mean enhance of $2259 for the coverage interval. In distinction, the typical six-month enhance so as to add one other 50-year-old to the identical coverage is simply $939.

How do charges differ between 16-year-old female and male drivers?

The common value of automobile insurance coverage for 16-year-old feminine drivers is mostly cheaper than the associated fee for male drivers. It is because younger male drivers are likely to show more risky driving behavior in comparison with younger feminine drivers, akin to dashing or driving drunk.

Age Month-to-month value – male driver Month-to-month value – feminine driver 16$845$78217$768$70518$647$586

Why is automobile insurance coverage so costly for 16-year-olds?

Automobile insurance coverage is rather more costly for 16-year-old drivers as a result of they’re extra more likely to get in accidents than older drivers. In response to the Facilities for Illness Management and Prevention (CDC), teen drivers are thrice extra seemingly than different drivers to get in a deadly crash.

Charges for 16-year-olds are additionally greater as a result of insurance coverage corporations do not have present knowledge to base their fashions on. Automobile insurance coverage charges are partly based mostly in your driving historical past, as somebody who has pushed accident-free for a number of years can pay much less for insurance coverage than somebody who has brought about a number of automobile accidents.

However for these teenagers, who’ve usually had their driver’s licenses for a yr or much less, there’s little or no knowledge for insurance coverage corporations to base their determination on. This results in greater prices for each teenage driver, irrespective of how cautious they’re.

Evaluate Quotes With an Impartial Agent

Each insurance coverage firm is completely different. Some corporations need sure sorts of insurance policies however don’t need different sorts of insurance policies. So some insurance coverage corporations may have actually good pricing for teen drivers, as a result of they need that sort of enterprise whereas different automobile insurance coverage corporations may have actually excessive charges on teenage drivers as a result of that sort of coverage shouldn’t be what they need. So till you store round and examine with many various corporations, you may’t make sure you’re getting the most effective charges. To examine charges with an impartial agent, click here.