Insuring a 16-year-old driver can be costly. Since adolescent drivers don ’ t have the benefit of know for insurance companies to consider when setting rates, they are considered riskier to insure. There are strategies you can use to help save money and get the best cable car insurance for a 16-year-old driver.

How Much Does Car Insurance Cost for a 16-Year-Old?

The median price of car policy for a adolescent driver will vary based on several factors, including location, car type and, depending on the party, the students ’ grades. But there is one area where parents can score significant savings : Choosing to add a 16-year-old to a family plan, which is by and large cheaper, as opposed to having the adolescent get an individual policy. Insuring a 16-year-old on an individual policy comes with an average increased cost of $ 1,947 per year.

Annual Car Insurance Premium for a 16-Year-Old

financialPlanningAdded to a Family Policy average annual premium $ 3,371carInsuranceIndividual Policy average annual premium $ 5,318An individual policy is : $ 1,947 more This is 58 % more expensive.

Cheapest Car Insurance for 16-Year-Old Males and Females

There is a remainder when it comes to gender for insuring modern adolescent drivers. typically, it costs more to insure a 16-year-old male driver than a female driver of the lapp age. That ’ south because male drivers have a higher accident rate and more insurance claims and are consequently more of a risk to policy companies. According to our findings, the gender remainder results in an average cost of about 13 % higher per year for a male driver. however, that remainder decreases slenderly as those comparable drivers neared 18 .

Annual Car Insurance Rates for Males and Females

female16-Year-Old Female average annual agio $ 3,160male16-Year-Old Male average annual premium $ 3,583Rates for males are : $ 423 more This is 13 % more expensive.

Cheapest Car Insurance Companies for 16-Year-Old Drivers

For those who opt to add their adolescent driver to an existing family policy, the car policy ship’s company you use can make a meaning remainder in the price of car policy. MoneyGeek found that among the cheapest car policy companies for 16-year-old drivers, there ’ second still a 20 % dispute in average price per class between the first-ranked and fifth-ranked companies.

Cheapest Companies for 16-Year-Olds Added to Family Policy

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  • party annual agio
  • 1. Allstate $ 3,146
  • 2. GEICO $ 3,152
  • 3. state of matter farm $ 3,406
  • 4. progressive $ 3,570
  • 5. nationally $ 3,787

While the cheapest average cost we found for adding a 16-year-old to a family policy is $ 3,146, it costs an average of $ 5,318 for an person policy for the same-age driver. just by adding a 16-year-old to a family policy, you can save an average of $ 2,172 annually.

Cheapest Companies for a 16-Year-Old’s Individual Policy

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  • party annual agio
  • 1. state farm $ 3,612
  • 2. countrywide $ 4,705
  • 3. Allstate $ 5,342
  • 4. GEICO $ 5,466
  • 5. progressive $ 7,455

Car Choice Matters When Insuring a Young Driver

The type of vehicle a adolescent driver uses is another significant factor in how much it will cost to add the adolescent to your policy. expensive and high-performance cars, for example, will drive up rates. On the other handwriting, a less expensive, safe car can be an effective cost cutter. If you ’ re looking to buy your 16-year-old driver a car, it ’ s a good mind to consider how the fomite type may impact costs .

Teen Car Insurance Rates by Vehicle Type

carCamry average annual premium $ 3,371car2Mustang GT median annual bounty $ 4,894Driving a Mustang could cost : $ 1,523 more This is 45 % more expensive.

Strategies to Save Money on Car Insurance for a 16-Year-Old

Although it can seem daunting when you ’ re patronize for car policy for young drivers, there are prove strategies you can use to lower the costs and get the best automotive insurance for a 16-year-old. Opting to add one of these young drivers to a family policy is one solid choice to consider, which can save an median of about $ 500 per year, even if you go with the cheapest option for either character of policy.

Compare Quotes for the Best Policy for Your Family

No matter the driver, when you ’ re buy car insurance, comparing car indemnity rates can help you save. By reviewing your options, you ’ ll understand the different coverage types and costs to more easily pick the best brassy car indemnity for a 16-year-old driver. The more quotes you can get, the better.

Monitor Your Teen Driver to Ensure a Clean Driving Record

As with drivers of any historic period, ensuring your young driver keeps a clean drive record is a capital way to keep car insurance costs down. conversely, accidents and tickets will dramatically increase car policy costs for your 16-year-old. It ’ s particularly crucial to monitor your adolescent driver while they are in that 16–17 long time range when crashes tend to be statistically more likely.

Find Companies That Offer Teen Discounts

many companies offer discounts to drivers for things like safety and loyalty. And the lapp goes for younger drivers. Look for options like good scholar discounts, which can help you reduce car insurance costs for young drivers who maintain a specified GPA or dean ’ second list status. For example, Allstate, the cheapest company for teens added to a syndicate policy, offers a few options for teens to qualify for a “ chic scholar ” dismiss. This discount requires teens to either be full-time students with good grades, serve school at least 100 miles from where the car is kept or complete the “ teenSMART ” driver education program. This would apply to drivers under 25 who are unmarried. Allstate besides has a drive feedback broadcast called “ Drivewise, ” which can help lower costs. defensive drive courses can besides help these drivers save, both from discounts and because it helps reduce accident rates, which, over meter, saves families money.

Lower the Coverage Amount

The sum of coverage you need will vary, but for those who are will, decreasing those can decrease the cost of insurance companies. You ’ ll still have to adhere to your express ’ second minimal requirements, of course, but lowering the coverages can be a lawful option for those looking to save. For model, you may consider liability-only car insurance if you own cheap cars. It ’ randomness besides authoritative to be mindful that by opting for this type of coverage, you won ’ thyroxine be covered for your own vehicular damage or personal injury costs. In the event of a crash, that could turn into an expensive problem if you don ’ t have cash on bridge player to replace or repair a wrecked car.

Choose a Sedan Over a Sports Car

Vehicle type is an necessity agent when it comes to cable car policy costs. For example, something like a Camry — a four-door sedan that earned the top-safety pluck from the Insurance Institute for Highway Safety — will be a cheaper choice to insure than a muscle car that focuses on performance, like a Mustang. Sports cars and expensive luxury cars, in general, will be more expensive, excessively.

Why Is Car Insurance So Expensive for a 16-Year-Old?

adolescent drivers tend to cost more to insure because they are, on the whole, more likely to get into accidents and have a reason to use their indemnity.

Traffic Statistics for 16-Year-Old Drivers

The younger the driver, the more probable it is that they ’ ll be involved in a crash. According to data for police-reported crashes in 2014 to 2015, drivers aged 16–17 were involved in about double the count of black crashes than 18- and 19-year-olds for every 100 million miles force.

Accidents per 100 Millions Miles Driven
Driver Age fateful Crashes injury Crashes All Crashes
16–17 3.75 361 1,432
18–19 2.47 197 730
20–24 2.15 157 572

Teens are at a higher risk for accidents. And while there are fewer deaths per head for teens than older drivers, there are more deaths per mile drive for those younger drivers. Teens are a riskier bet when it comes to accidents, which can drive up the costs of cable car indemnity. And while there are fewer deaths per caput for the teen-driver demographic, there are more deaths per miles driven. Limiting the number of miles your teens drive could both help reduce costs and keep them safe .Driver Deaths per Capita per Annual Miles Driven

States With the Highest Car Insurance Cost for a 16-Year-Old

Where you live will besides impact your cable car indemnity rates, not merely because the local statistics can impact cost, but besides because you may have more limited options. The average costs of car indemnity for 16-year-old drivers in the U.S. ranged from $ 651 to $ 15,104 per year. On modal, the cheapest states were Maine, Hawaii and Indiana, while the most expensive states were Michigan, Louisiana and New York.

Top 10 Most Expensive States For 16-Year-Old Drivers

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  • state annual premium
  • MI

    $10,497

  • NY

    $9,285

  • LA

    $8,852

  • MD

    $6,340

  • RI

    $5,056

  • GA

    $5,022

  • FL

    $4,913

  • NV

    $4,672

  • CA

    $4,187

  • NJ

    $4,172

company rates will vary per state, excessively. For example, the cheapest cable car policy companies for a 16-year-old driver ranged from $ 704 to $ 7,658 per class on average, depending on location and policy purchased.

Cheapest Car Insurance for Teens by State

Cheapest Car Insurance Company by State

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  • state company
  • AK

    GEICO

  • AL

    GEICO

  • AR

    Allstate

  • AZ

    GEICO

  • CA

    Allstate

  • CO

    Allstate

  • CT

    GEICO

  • DC

    GEICO

  • DE

    Progressive

  • FL

    GEICO

  • GA

    Allstate

  • HI

    State Farm

  • IA

    GEICO

  • ID

    Allstate

  • IL

    Progressive

  • IN

    Progressive

  • KS

    Progressive

  • KY

    Allstate

  • LA

    State Farm

  • MA

    State Farm

  • MD

    Allstate

  • ME

    GEICO

  • MI

    Progressive

  • MN

    State Farm

  • MO

    Allstate

  • MS

    Nationwide

  • MT

    Allied

  • NC

    State Farm

  • ND

    GEICO

  • NE

    Progressive

  • NH

    Progressive

  • NJ

    GEICO

  • NM

    Progressive

  • NV

    Allstate

  • NY

    Allstate

  • OH

    Allstate

  • OK

    Progressive

  • OR

    Progressive

  • PA

    Allstate

  • RI

    State Farm

  • SC

    GEICO

  • SD

    Allstate

  • TN

    Progressive

  • TX

    State Farm

  • UT

    GEICO

  • VA

    Progressive

  • VT

    Allstate

  • WA

    GEICO

  • WI

    Progressive

  • WV

    Nationwide

  • WY

    Allstate

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Methodology

MoneyGeek collected data for young drivers in this age roll to determine and contextualize the average cost of car policy for 16-year-olds. MoneyGeek ‘s methodology includes driving statistics from the AAA Foundation for Traffic Safety and the Insurance Institute for Highway Safety and the U.S. Department of Transportation Federal Highway Administration.

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About the writerexpert-profileexpert-profile Devon Delfino is an independent journalist based in the Pacific Northwest. She earned her Bachelor of Science degree in journalism from Boston University. Her personal-finance report has been featured in publications such as the L.A. Times, Teen Vogue, Mashable, MarketWatch, CNBC and USA Today, among others .

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