Cost of Auto Insurance for 16-Year-Olds

If you are looking for insurance for a 16-year-old, you can expect to pay around $4,838 on average to add them to an existing policy, but your exact premium will vary based on location, carrier, and whether or not there are any tickets or accidents on the driving record. An individual policy for a 16-year-old is twice as expensive as adding them to a family policy.

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Teen Premiums by State

The following state averages are for teen car insurance, not specifically 16-year-olds — you can expect rates for 16-year-olds to be slightly higher, on average, than these rates.

Age 16 is the starting point for insurance because it’s when drivers receive their unrestricted licenses. Compared to other age groups, 16-year-old drivers and drivers under 25 in general face the highest car insurance rates.

Note that average premiums increase at 18 because the rates are for individual policies, while rates for 16- and 17-year-olds are reflective of being added to a family policy. Rates start to decrease once you reach age 20 and continue to decrease over time, as long as you maintain a clean driving record with no at-fault accidents or tickets.

Men pay more than women for auto insurance in most states, but the difference is particularly significant in the teen years because teen boys are much more likely than teen girls to get into accidents. Sixteen-year-old teen boys, on average, can expect to pay around 12 percent more in premiums than 16-year-old teen girls.

Charging a different rate based on sex is price discrimination. Every state allows for this, except for the following six states:

• California
• Hawaii
• Massachusetts
• Michigan
• North Carolina
• Pennsylvania

There’s no doubt that teens are expensive to insure, but gender is one of many other factors, including address, type of vehicle, and more, that influences the cost of car insurance.

As new drivers, 16-year-olds often have limited driving experience and may engage in irresponsible driving habits, such as speeding or cutting people off. These habits are not exclusive to 16-year-olds, but data shows they are more likely to be involved in accidents and have a poor driving record.

In 2023, young drivers (which the NHTS defines as drivers between the ages of 15 and 20) represented 8.9 percent of all drivers in fatal traffic accidents, but only 5.1 percent of all licensed drivers.¹ Teen drivers are three times as likely to get into a fatal crash as other driver age groups.²

Rates for teen drivers reflect the higher risk that they pose. Each insurance company keeps its own data on accident and ticket incident rates among its drivers. Sixteen-year-olds have the highest accident rates and thus incur the highest premiums.

When your teenager gets their license, they will need insurance to drive a car. Depending on your state and insurance company, you may need to insure them as soon as they get their permit and start learning to drive. If your teen driver is driving your car, you must add them to the family’s policy. Adding a teen driver to your car insurance means that your rates will increase.

Based on our research, 85 percent of parents add their teen drivers to their existing insurance policies. However, if your teen driver has their own car, you can have them get their own policy instead.

That said, adding a teenager to your policy can be the cheapest way to go. Getting an individual policy for a 16-year-old is 73 percent more expensive, on average, than adding them to a family policy.

1. Add your teen to the family policy. You can save up an average of 42 percent on premiums by not getting a separate policy for your teen driver.
2. Ask for a good-student discount. Most carriers offer a good-student discount for students with a B average or better. This discount can be up to 25 percent.
3. Ask about low-mileage driving. Cars driven under 7,500 miles per year qualify for a reduced rate. Ask your insurance agent if you could get a better rate with usage-based insurance, otherwise known as pay-per-mile insurance.
4. Ask about other discounts. You may get a discount if your teen signs up for a driving tracker, takes a driving class, or is away at school.
5. Shop around. Get quotes from different carriers to see which can offer you the best possible rates.
6. Buy a car that is cheaper to insure. An older sedan is cheaper to insure than a convertible because its value is lower, and thus it costs less to repair. Talk to your insurance agent about good cars to buy that get better rates.
7. Raise the deductibles. You will have to pay more up front if you need to file a claim, but if you can afford to do so, you can lower your premium.

Adding a teen to your policy is similar to getting a policy as an adult.

1. Have the car registration and their driver’s license available so you can get the correct information.
2. Call your insurance carrier and request an update to your policy.
3. Provide the car’s year, make, model, and VIN.
4. Provide your (or your teen’s) name, birthdate, and driver’s license number.
5. Select the insurance coverage you want.
6. Review the quote and purchase.

When adding a teen to a family policy, it’s a good idea to shop around, as your rate will increase and your current insurer may no longer offer the best rate. If you opt to get a separate policy for your teen, you can shop around for them without affecting your own insurance. Keep in mind that a parent or guardian will need to co-sign a policy for a minor in most cases.

Prepare for the sticker shock of getting insurance for a 16-year-old. Rates can be more than double what the parent driver pays for car insurance. While the average rate is $4,838 annually, you can reduce this by qualifying for as many discounts as possible.

Shop for quotes to find the cheapest car insurance for teens in your area. While adding a 16-year-old to your policy is certainly expensive, other factors, like ZIP codes and driving history, also influence the rates.