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

The average cost of car insurance for a 16-year-old is $6,779 per year, significantly more than the cost of coverage for older drivers.

Andrew Hurst

By 

Andrew Hurst

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Updated April 28, 2022 | 5 min read

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On average, the cost of car insurance for a 16-year-old with their own policy is $565 per month (or $6,779 per year). The cost of insurance for a 16-year-old male driver is even more expensive at $7,207 per year, while coverage costs female drivers an average of $6,351 per year.

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Car insurance for 16-year-olds is nearly $2,000 more expensive than for 18-year-olds, but the youngest teenage drivers can still sometimes find cheap coverage, especially by joining a family policy instead of getting their own. Erie and COUNTRYFinancial are the cheapest companies for 16-year-old drivers at an average rate of $262 per month ($3,145 per year).

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

Our analysis found that the average car insurance rate for a 16-year-old is $565 per month. On average, 16-year-olds pay $6,779 per year for car insurance, which is $5,127 more than the cost of coverage for 30-45-year-old drivers

Car insurance for 16-year-olds is often expensive, but teenage drivers may be able to find cheap rates by comparing quotes from different companies before picking a policy. On average, Erie and COUNTRY were the cheapest insurance companies for 16-year-olds. Both companies offer car insurance for $252 per month — 54% cheaper than the average cost for 16-year-olds.

A bar graph showing the cheapest car insurance for 16-year-olds, with Erie and COUNTRY as the most affordable option.

But while Erie, COUNTRY, and MAPFRE had the cheapest average rates for 16-year-olds, they aren’t available in every state. 

State Farm has the cheapest insurance for 16-year-old drivers of any nationally available companies (though it’s not available in Massachusetts).

RankCompanyMonthly costAnnual cost
1Erie$262$3,145
1COUNTRY Financial$262$3,145
3MAPFRE$267$3,199
4State Farm$319$3,822
5Auto-Owners Insurance$331$3,974
6Farm Bureau$336$4,031
7American Family$377$4,522
8GEICO$381$4,572
9USAA$384$4,603
10Nationwide$467$5,605
11Kemper$468$5,614
12Shelter Insurance$500$6,004
13Average$565$6,779
14Travelers$601$7,215
15The Hartford$621$7,446
16CSAA$639$7,672
17Allstate$708$8,501
18National General$745$8,935
19Progressive$826$9,910
20Farmers$874$10,488
21Sentry Insurance$881$10,569
22Amica$1,008$12,093
23Auto Club Group$1,064$12,764
24Mercury Insurance$1,149$13,790
25Hanover$1,319$15,827

Cost of full-coverage car insurance for 16-year-olds with their own policy.

Average insurance cost for a 16-year-old vs. other teen drivers

Compared to older drivers, 16-year-olds pay much more per year for car insurance than any other age group. The average cost of car insurance for a 16-year-old is $1,848 more per year than for a teenager driver just two years older and $4,071 more than for a 21-year-old.

A graph showing the cost of car insurance for 16-year-olds.

Young drivers are charged higher rates because of their lack of driving experience. They’re more likely to get into crashes and make claims than older drivers. But teenage drivers age and gain experience behind the wheel, their insurance gets cheaper over time, leveling out around age 25.

AgeMonthly costYearly cost
16$565$6,779
18$411$4,931
21$226$2,708
25$161$1,929
30$142$1,706
35$138$1,654
45$132$1,583
55$122$1,463
60$121$1,449
65$125$1,494
70$132$1,585

Full-coverage car insurance, ordered by age.

Can a 16-year-old get their own car insurance?

A 16-year-old can get their own car insurance, but it’s usually a better idea to add them to your policy once they’re licensed. 

Insurance companies often require you to include every driver in your household on your policy, and adding your teenage driver to an existing policy is usually cheaper than getting them their own coverage. You can exclude your 16-year-old from your policy to avoid the rate increase, but that means they won’t be able to drive your car.

If your 16-year-old gets their own car insurance policy separate from yours, they will have to get approval from a guardian. This is because minors aren’t legally allowed to enter into an insurance agreement by themselves.

What is the cost to add a 16-year-old to your insurance?

Our quote comparison found that adding a teenage driver raises car insurance costs by 103%. While adding a 16-year-old will probably always come with a rate increase, the exact amount will depend on where you live, and other factors.

While it’s expensive to add a 16-year-old to your insurance policy, it’s still going to be cheaper than if they got their own policy. In our comparison, adding a 16-year-old to an existing policy was 66% cheaper than if they had bought their own auto insurance.

Comparison graph showing the cost of adding a 16-year-old to your car insurance.

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Cost of car insurance for 16-year-old male and female drivers

Over average a 16-year-old male driver will pay more for car insurance than a female driver of the same age. Our analysis shows that car insurance for a 16-year-old male driver is $71 more per month (or $856 more per year) than for a 16-year-old female driver. 

However, seven states have made it illegal for insurers to use gender or sex to determine car insurance costs.

GenderMonthly costAnnual cost
Male driver$601$7,207
Female driver$529$6,351
Difference$71$856

Full-coverage car insurance.

Best car insurance for 16-year-olds: Erie and COUNTRY

The two best car insurance companies for a 16-year-old driver are Erie and COUNTRY. Average rates were the same at both companies — $262 per month — the cheapest overall for new teenage drivers. Both also have other benefits for young drivers and their families.

Erie

3.9

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Erie logo

Tied for cheapest for 16-year-olds

Erie’s low average rates and special discounts for young drivers make it a top choice for a 16-year-old’s car insurance.

Along with its low cost of car insurance for 16-year-olds, Erie also has a wide range of coverage options and discounts that can help lower the cost to insure young drivers, including: 

  • Youthful Driver discount: For drivers younger than 21 who live with their parents.

  • Youthful Driver Longevity discount: For young drivers who spend more than one year insured under a parent’s policy.

  • Driver training discount: For drivers who have successfully completed a driver training course.

COUNTRY Financial

COUNTRY Financial logo

Tied for cheapest for 16-year-olds

COUNTRY’s cheap policies and discounts for teen drivers make it another great option for car insurance for 16-year-olds.

Like Erie, the cost of car insurance for 16-year-olds at COUNTRY is 54% cheaper than average. COUNTRY also offers discounts that are specifically targeted at teenage drivers, including:

  • Simply Drive discount: For 16- and 17-year-olds with clean driving records who complete COUNTRY’s own 8-question online test. 

  • Good student discount: For young drivers who maintain at least a B average in school. You can receive another discount after graduating college, too.

  • Driver training discount: For drivers who have completed an accredited defensive driving course.

What is the cheapest car insurance for a 16-year-old in every state?

The cheapest company for coverage varies by state. While the national average cost of car insurance for 16-year-olds is $565 each month, average rates with the cheapest company in your state could be half that.

State Farm is the most affordable company for 16-year-olds in 10 states.

The state with the cheapest car insurance rates for 16-year-old drivers is Hawaii, where companies can’t use your age to determine what you’ll pay. Insurance costs are highest in Louisiana. The cheapest company in Louisiana is USAA, so teens who aren’t a part of military families will pay even more for car insurance.

StateCompanyMonthly rate
AlabamaCOUNTRY Financial$213
AlaskaUmialik$255
ArizonaRoot$210
ArkansasFarm Bureau$265
CaliforniaWawanesa$184
ColoradoFarm Bureau$271
ConnecticutKemper$335
DelawareState Farm$360
District of ColumbiaErie$253
FloridaGEICO$351
GeorgiaAuto-Owners Insurance$225
HawaiiGEICO$74
IdahoAuto-Owners Insurance$212
IllinoisPekin$207
IndianaAllstate$168
IowaState Farm$189
KansasAmerican Family$274
KentuckyState Farm$369
LouisianaUSAA$444
MaineAuto-Owners Insurance$161
MarylandErie$316
MassachusettsUSAA$312
MichiganGEICO$178
MinnesotaFarm Bureau$213
MississippiFarm Bureau$302
MissouriUSAA$217
MontanaState Farm$255
NebraskaFarmers$227
NevadaCOUNTRY Financial$275
New HampshireAuto-Owners Insurance$166
New JerseyGEICO$197
New MexicoCentral Mutual Insurance$245
New YorkAmerican Family$252
North CarolinaState Farm$134
North DakotaNorth Star$221
OhioErie$204
OklahomaAmerican Farmers and Ranchers$229
OregonCOUNTRY Financial$188
PennsylvaniaGEICO$281
Rhode IslandState Farm$259
South CarolinaGEICO$279
South DakotaState Farm$275
TennesseeState Farm$223
TexasFarm Bureau$211
UtahAuto-Owners Insurance$347
VermontAuto-Owners Insurance$171
VirginiaFarm Bureau$211
WashingtonState Farm$316
West VirginiaState Farm$223
WisconsinAuto-Owners Insurance$210
WyomingUSAA$283

Cost of full-coverage car insurance for 16-year-olds with their own policy.

How to get cheaper car insurance for 16-year-olds

While the average 16-year-old’s car insurance costs can be thousands of dollars more expensive per year than an older driver, there are still ways that teens can get affordable coverage. You can lower the cost of insurance for a 16-year-old by:

  • Adding your teen driver to your own policy: While it will make your own car insurance more expensive, keeping your 16-year-old child on your existing policy once they’re licensed is much cheaper than buying separate coverage.

  • Searching for driver-specific discounts: Most companies, including Erie and COUNTRY, offer discounts catered to young drivers, like savings for keeping grades high, completing driving classes, and, sometimes, for being a part of certain clubs.

  • Sign up for usage-based insurance programs: Most major car insurance companies allow you to get discounted rates for using their usage-based or telematics programs. After monitoring your 16-year-old’s driving habits, the company will lower rates for safe drivers.

  • Consider a pay-per-mile policy: You can pay by the mile for your car insurance with Root, Allstate, Nationwide, and Liberty Mutual. The cost of these policies may be cheaper for 16-year-olds who don’t drive frequently and own their own cars.

  • Increase your deductible amounts: Some types of coverage, like comprehensive and collision, require a per-claim deductible that you set when you buy your policy. A higher deductible means a cheaper premium, but it means you can’t make claims for minor damage.

  • Drop coverage for an older car: You should keep as much liability insurance as you can afford, but if your teen drives an older car that isn’t worth much, you can pay less for car insurance by dropping comprehensive and collision coverage for that vehicle. 

Since a 16-year-old driver’s average car insurance rates depend heavily on location and vary by company, the easiest way to find the cheapest car insurance for a 16-year-old is to compare the cost of coverage from multiple providers in your area.

Frequently Asked Questions

What does car insurance cost for a 16 year old?

While everyone’s rates depend on their location, driving history, credit score, and other factors, car insurance costs 16-year-olds an average of $565 per month, or $6,779 per year. However, if you add a 16-year-old to an existing policy, it will be cheaper than paying for separate coverage.

How much is insurance for a 16-year-old boy compared to a 16-year-old girl?

Car insurance is more expensive for 16-year-old male drivers than it is for female drivers. Newly licensed 16-year-old boys pay an average of $71 per month more for car insurance, or $856 per year.

When can you take a 16-year-old off of your insurance?

Most of the time, you won’t be able to remove a 16-year-old who lives at your house from your policy until they move out and buy their own car. Insurance companies require all licensed drivers in a household who have access to the insured vehicle to be licensed. You can exclude a 16-year-old from your insurance, but that means they won’t be able to drive your car at all.

Methodology

Policygenius found the cost of car insurance for 16-year-olds driving using rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. for a 2017 Toyota Camry LE driven 10,000 miles per year. These rates were for full coverage with the following coverage limits:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

To find the cost of adding a 16-year-old driver to an existing policy, we collected minimum-coverage rates for a 45-year-old driver with and without a 16-year-old child living in Ohio. We chose Ohio for the state’s low average insurance rates and large number of national insurance companies. Our quotes are from the state’s five largest insurance providers.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.