How Much Is Car Insurance for a 16-Year-Old in California?

The average rates for car insurance for a 16-year-old driver in California are $235 per month for liability-only coverage and $459 for full coverage. Because teen drivers have less experience behind the wheel, they’ll typically pay the highest rates of any age demographic.

But remember that these numbers are only averages. Not every teen in the Golden State will pay this. The rate you pay depends on several factors, like your location and vehicle type. Understanding how these factors affect insurance rates can help you make the best choices for your budget and teen driver.

We’ll explore these factors and show you where to find cheap car insurance in California for a 16-year-old driver.

Cost of insurance for 16-year-olds in California

The cost of car insurance for teens differs from company to company, but knowing where to look for auto coverage can help you get the best rates. For example, 16-year-old drivers in California can find some of the least expensive rates with Mile Auto and Root. Just remember that minors need written consent from a parent or guardian to get their own policy.

The table below shows several insurers in California with the lowest insurance rates for 16-year-olds with their own policy.

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Cost of adding a teen to parents’ policy vs. their own policy

Finding affordable car insurance for a new driver depends on whether you’re adding your teen to your policy or getting them their own policy. But it’s simply easier and cheaper to add your teen to your insurance policy rather than having the teen driver buy a separate policy.

Here are some pros and cons of adding your 16-year-old to your insurance policy versus buying them their own separate policy.

Adding a teen driver to your policy

Buying a separate policy for your teen

The chart below shows liability-only and full-coverage rates for two parents and a teen, two parents on their own, and if a teen driver gets their own separate policy.

Adding a teen to a two-parent policy increases the parents’ premiums by nearly double. A liability-only policy costs $139 more, and a full-coverage policy costs $283 more. The premiums for a separate teen policy cost less than those for a policy for two parents plus a teen.

On the surface, buying a separate policy would be cheaper if the teen paid for it themselves, but it wouldn’t be the cheapest option if the parents paid for both policies. That means adding the teen to the parents’ policy would be less expensive for the household as a whole.

Factors affecting insurance rates for 16-year-olds in California

Car insurance companies look at several factors to determine the rate 16-year-olds pay for car insurance in California. While some factors are outside of the driver’s control, you can control other factors — and use them to help lower your premiums.

Here are several of the most common factors insurers in California use to set premium rates:

• 

  Age and gender

  Your age and gender affect how much you pay for auto insurance. Teens drive less than nearly every age demographic but have a higher rate of car crashes, including fatal crashes. Young drivers — specifically male drivers — are statistically more likely to get into a crash. Nearly two out of every three teenagers killed in a car crash are male, according to the Insurance Institute for Highway Safety (IIHS).^[1]

• 

  Driving experience

  The less experience a driver has, the higher their chances of making a mistake on the road. A lack of experience behind the wheel means a 16-year-old driver will have higher premiums. But gaining safe driving experience will naturally result in lower premiums over time.

• 

  Vehicle type

  The type of car a teen drives can affect the cost of premiums. More expensive cars generally cost more to insure, but insurance companies also look at the likelihood of theft, repair costs, and safety records. A car with certain safety features may qualify you for a discount from your insurance company.

• 

  Geographic location

  Where you live matters. Everything from weather patterns to crime statistics in your area can affect the cost of car insurance coverage.

• 

  Driving record

  Insurers offer the lowest rates to people with clean driving records. While a 16-year-old driver with no driving record may have no prior accidents or violations, insurers can’t predict future driving behavior based on no driving history. Companies rely on statistical data for this age group, and rates will remain high until the teen establishes a clean record.

• 

  Coverage type

  It pays to know how much car insurance coverage you need. The level of coverage you purchase for a teen driver determines the rates you pay. A liability-only policy has a lower monthly premium than a full-coverage policy. But liability insurance alone usually isn’t enough coverage, and you’ll pay more out of pocket if you get into an accident and file a claim. A full-coverage policy costs more but provides more protection.

• 

  Discounts and bundles

  Many companies offer car insurance discounts, such as good student or student-away-from-home discounts, to help lower your premiums. You may also be able to save with a bundling discount when you buy your auto insurance and another policy, such as homeowners insurance, with the same insurer.

Comparing teen driver rates in California with other age groups

Teenagers pay the highest auto insurance rates of any age group. Insurers charge teen drivers more because they’re more likely to get into a car accident. As these drivers gain more experience behind the wheel, their insurance rates will typically go down as they age. Here are the average monthly rates in California for every age group.

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How to reduce insurance costs for 16-year-olds

Though teens generally pay higher car insurance rates than other drivers, you have some ways to reduce your insurance costs:

• Ask about good student discounts. Many insurance companies offer good student discounts to teen drivers who maintain a high GPA.

• Take a defensive driving course. Taking a driver education course focused on safety and defensive driving may also make a teen driver eligible for a discount.

• Choose a higher deductible. The deductible is the amount of money you must pay after filing a claim before your insurance coverage kicks in. A higher deductible will result in lower premium rates. But make sure you’d be comfortable paying the deductible amount out of pocket if you needed to file a claim.

• Choose the right car. Ensuring that your teen is driving a safe car not only will give you peace of mind, but it can also potentially lower your insurance costs. If you need recommendations for a safe and affordable car for your teen, check out the IIHS website.

• Bundle policies or join your parents’ insurance. Insurance companies offer price breaks to customers who purchase multiple policies. Bundling auto insurance with homeowners insurance is one way to save money on both. A 16-year-old driver will also find that joining their parents’ insurance policy is typically cheaper than buying their own policy.

Cost of insurance for a 16-year-old in California FAQs