How much is car insurance for a 16-year-old driver?

Car insurance for a 16-year-old driver is about $216 per month on average, but teen drivers can get cheaper rates if their parent or legal guardian adds them as a driver. Insurance companies provide discounts for students with good grades and clean driving records. However, 16-year-old drivers who want a policy on their own could pay over $500 a month. Shop around and compare multiple insurance companies to get the best rates.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent Brad Larsen

UPDATED: Mar 8, 2022

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Things to Know

  • Teen drivers are high-risk drivers that produce more expensive rates
  • You can lower teen car insurance by adding the teenage driver to your policy
  • Save more than 50% on car insurance by switching to liability-only insurance

Do you want to acquire auto insurance for a 16-year-old driver? Purchasing insurance for a teen driver can be expensive.

But how much is insurance for a 16-year-old driver? And is there a way to save money on teen car insurance? Don’t worry – we’re here to help.

Our guide has everything you need to know about teen insurance costs and which car insurance companies provide affordable rates for 16-year-old drivers.

If you’re ready to shop for insurance for a 16-year-old driver, enter your ZIP code above to compare multiple quotes from insurance companies near you.

How much is car insurance for a 16-year-old driver?

The average cost of insurance for 16-year-old drivers is $216 a month, but that’s for a liability-only car insurance policy. Meanwhile, full coverage insurance is approximately $578 a month. A 16-year-old female driver could pay $547 per month for insurance, and a 16-year-old male driver could pay up to $624 per month.

Because individual car insurance policies are so expensive for teen drivers, we recommend that teens be listed on a parent or legal guardian’s insurance policy. However, you can cut costly rates by obtaining state minimum auto insurance, which is another way of referencing liability-only car insurance.

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Can you receive cheap insurance rates when you shop at different car insurance companies?

Yes, you can. We encourage you to shop around before buying an insurance policy. And if you’re trying to save money for you and your teen child, acquire multiple quotes from various companies.

Let’s examine estimates from the best companies in America and compare individual teen insurance to car insurance costs with parents or legal guardians.

Car Insurance Rates by Parent/Legal Guardian's Policy
CompaniesCar Insurance Rates under Parent/Legal Guardian PolicyCar Insurance Rates without Parent/Legal Guardian
State Farm$316$301
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Allstate is the most affordable company for parents and legal guardians that want to insure their teen driver, but State Farm provides more economical rates for teens who want an individual car insurance policy.

Expand your search to procure quotes from smaller, regional companies like Erie Insurance and The General Insurance Company. Some auto insurance companies offer more reasonable rates than the top companies.

Does car insurance become cheaper as you get older?

Yes, it does. Teens older than 16 pay more affordable rates at insurance companies because they have more driving experience. When you turn 17, your insurance rates could decrease by $60 or more. By 18 years old, your car insurance rates could descend by $100 or more.

Is car insurance for 16-year-old drivers cheaper by state?

Yes, it is. Insurance rates vary for each state, and some states have higher risk factors than others. Insurance companies respond to these risk factors with higher costs.

One of the reasons why teen car insurance is expensive is because teenage drivers have a higher risk of filing claims.

But what does car insurance look like for 16-year-old drivers? Let’s review the average cost of insurance for 16-year-old drivers under a parent or legal guardian and the fee for an individual auto insurance policy.

Car Insurance Rates for 16-Year-Old Drivers and Parents/Legal Guardians by State
StatesTeen Car Insurance Rates (16-Year-Old Female)Teen Car Insurance Rates (16-Year-Old Male)Parent/Legal Guardian Car Insurance RatesParent/Legal Guardian Car Insurance Rates16-Year-Old Female Driver on Parent/Legal Guardian Policy16-Year-Old Male Driver on Parent/Legal Guardian Policy
*National Average$547$624$124$124$257$286
New Hampshire$547$628$97$97$225$251
New Jersey$540$606$133$133$333$364
New Mexico$610$692$116$116$248$274
New York$424$544$148$148$290$342
North Carolina$289$288$96$96$228$228
North Dakota$456$543$96$96$177$201
Rhode Island$835$981$162$162$384$449
South Carolina$516$574$138$138$283$314
South Dakota$515$610$102$102$178$207
West Virginia$467$545$113$113$221$253
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Michigan and Louisiana are the most expensive states for teens who want an individual car insurance policy. Meanwhile, Hawaii, Maine, and Ohio are the most expensive for parents and legal guardians who want to add their teenager to their insurance policy.

However, adding a 16-year-old driver to the parent’s or legal guardian’s policy is a less expensive alternative. Although you’ll save money by allowing your teen to have their own coverage, it’s more beneficial to your teenager if you add them as a driver to your policy.

How can you save money on car insurance for a 16-year-old driver?

The best method for helping a 16-year-old driver save money is by qualifying for discounts. Good student discounts can drop insurance rates by 20% or less.

Teen drivers can increase their savings by maintaining a clean driving record for six months or more.

Do you have to add a teen driver to your car insurance policy?

No, you don’t. It’s up to you whether or not you want to add your teenager to your insurance policy. However, adding them as a driver can save them money and provide a discount on your car insurance policy.

Car Insurance for a 16-Year-Old Driver: The Bottom Line

Insurance for 16-year-old drivers costs over $200 a month, but 16-year-old drivers can receive cheaper rates when they’re under a parent or legal guardian’s policy. If a 16-year-old driver decides to obtain an individual insurance policy, they can expect to pay more than average.

However, teens can acquire more affordable car insurance quotes from specific companies. We recommend that you shop around until you find an insurance company that provides reliable coverage within your budget.

Now that you have an idea as to how much 16-year-old drivers pay for insurance, use our free online quote tool to compare multiple insurance companies in your area.

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