When it comes to car insurance for 16-year-old drivers, the cost can vary depending on the coverage levels chosen. On average, car insurance for 16-year-old drivers can cost around $2,309 per year or $192 per month for state minimum liability only coverage. Opting for 50/100/50 liability coverage can increase the average cost to $2,776 per year or $231 per month. For more comprehensive coverage with 100/300/100 liability and a $500 deductible for comprehensive and collision, the average cost jumps to $7,096 per year or $591 per month.

Coverage level Average annual premium Average monthly premium
State Minimum Liability Only $2,309 $192
50/100/50 Liability Only $2,776 $231
100/300/100 Liability with $500 Comp/Coll Deductible $7,096 $591

Average car Insurance rates for 16-year-old male and female: Decoding gender impact

Gender can also play a role in determining car insurance rates for 16-year-old drivers. On average, 16-year-old females can expect to pay around $6,285 per year for car insurance, while their male counterparts may face slightly higher rates at $7,096 per year.

Gender Average annual premium Average monthly premium
Female $6,285 $524
Male $7,096 $591

How average car insurance rates for 16-year-old vary by State

Car insurance rates for 16-year-old drivers can vary significantly depending on the state they reside in. For example, in Alaska, the average cost for car insurance for a 16-year-old is $5,995 per year, while in Alabama it is $6,784 . In other states like Louisiana and Rhode Island, the average cost can skyrocket to $15,579 and $12,071 per year, respectively. On the other end of the spectrum, Hawaii offers the lowest average cost at $1,517 per year.

State Average annual premium Average monthly premium
California $6,239 $520

Low-cost car insurance for 16-year-old: Drive without breaking the bank

Finding affordable car insurance for 16-year-old drivers is possible. Some companies offer lower average annual costs, such as Island Insurance at $1,668 , North Carolina Farm Bureau at $3,490 , and Mapfre Insurance at $4,035 .

Comparing rates from multiple insurers is one of the easiest ways to find which insurer offers the lowest cost for 16-year-old driver and provides all the required coverage.

Company Group Average annual premium Average monthly premium
Island Insurance $1,668 $139
North Carolina Farm Bureau $3,490 $291
American National Finance $4,989 $416
Southern Farm Bureau $5,148 $429
USAA $5,532 $461
Geico $4,911 $409
Erie Insurance $4,156 $346
New Jersey Manufacturers $4,996 $416
American Family $5,040 $420
Western National Mutual $4,254 $354
Auto-Owners $4,919 $410
State Farm $4,950 $413
Nationwide $5,089 $424
Travelers $6,350 $529
Iowa Farm Bureau $6,030 $502
Mapfre Insurance $4,035 $336
Vermont Mutual $5,023 $419
Country Financial $5,352 $446
Safety Insurance $5,922 $494
National General Insurance $5,913 $493
Shelter Insurance $6,312 $526
The Hartford $7,302 $609
Frankenmuth Insurance $5,859 $488
Arbella Insurance $6,862 $572
Palisades $7,947 $662
Allstate $9,104 $759
Progressive $8,985 $749
CSAA Insurance (AAA) $9,543 $795
Farmers $10,785 $899
Kentucky Farm Bureau $7,967 $664
Amica Mutual $16,965 $1,414
Kemper Insurance $9,431 $786
Automobile Club MI (AAA) $10,336 $861
Chubb Ltd $8,242 $687
Safeway Insurance $7,969 $664
Westfield Insurance $8,441 $703
Oklahoma Farm Bureau $9,278 $773
Auto Club Enterprises (AAA) $15,819 $1,318
Mercury Insurance $12,148 $1,012
Sentry Insurance $17,365 $1,447
The Hanover $23,340 $1,945

The impact of adding a 16-year-old driver to a family’s existing auto insurance policy

Adding a 16-year-old driver to a family’s existing auto insurance policy can lead to significant savings compared to getting their own policy. On average, a 16-year-old driver can expect to pay $7,096 per year for their own policy. However, by adding them to their parent’s policy, the cost can decrease to $2,348 per year, resulting in savings of $4,748 . This option can be a more cost-effective solution for families looking to insure their young drivers.

Cost with own policy Cost with parent’s policy Savings
$7,096 $2,348 $4,748

Conclusion

Car insurance costs for 16-year-old drivers can vary based on coverage levels, gender, state of residence, and choice of the insurance company. Opting for higher coverage increases the average cost, while gender differences can also impact insurance rates. The average cost varies significantly by state, with some states having substantially higher premiums than others. However, affordable options exist, and it is possible to find lower-cost insurance for 16-year-old drivers by comparing rates from different insurers.

Additionally, adding a 16-year-old driver to a family’s existing policy can lead to significant savings compared to getting a separate policy. Families looking to insure their young drivers can consider this cost-effective option.

Methodology

CompuQuote commissioned 2022 data for Average car insurance rates for 16-year-old drivers from Quadrant Information Services for all 50 states and Washington, D.C. Rates are based on the following profile:

  • 16-year-old driver
  • Honda Accord LX
  • 12-mile daily commute, 10,000 annual miles
  • Good credit
  • Clean record

Rates are based on coverage limits of:

  • $100,000 bodily injury per person
  • $300,000 bodily injury per accident
  • $100,000 property damage per accident
  • $500 comprehensive and collision deductible

CompuQuotes analyzed rates from more than 34,000 ZIP codes, 56 million quotes, and 136 companies. Rates sourced from Quadrant Information Services are for comparison purposes only; your rates may differ.

About the Author: CompuQuotes Editorial
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