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Cheapest Car Insurance for 16-Year-Olds

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Car Insurance
Maria Sanchez

By: Maria Sanchez

Edited by Jackie Cohen

Last Updated May 10, 2022

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Quick Facts

  • The average cost of car insurance for a 16-year-old is around $195 per month.
  • Travelers is the cheapest insurer we found for 16-year-olds, with average premiums of $150 per month.
  • Teenage drivers can save on car insurance through discounts, such as a good student discount or a driver training discount.

Sweet 16 is a teenage milestone, marking the start of new independence. But one thing most teenage drivers don’t think about is getting an insurance policy. Little do they know that getting on the road also means getting the right amount of insurance coverage to make sure that they’re protected when driving.

Parents might get nervous when they think about the high auto insurance rates needed not only to help keep their teen drivers safe but also to protect other drivers on the road. Luckily, Insurify can help both parents and teens compare auto insurance providers to find cheap car insurance quotes.

Cheapest Car Insurance Companies for 16-Year-Olds

Insurify is here to help you find the cheapest car insurance companies for your new driver. This way, you can make sure that everyone on the road is financially secure in the case of bodily injury, or worse, a fatal crash. Taking precautions beforehand and investing in the best car insurance can protect everyone.

To make things easier, we put together this list of the cheapest car insurance companies for 16-year-old drivers.

Insurance CompanyCheapest Monthly Quote
Travelers$150
Elephant$153
Safeco$171
Bristol West$211
Liberty Mutual$214
Dairyland$225
Mercury$226
The General$247
Infinity$308
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

Average Car Insurance Rates by Age and Gender

Since young drivers lack driving experience, they are more prone to accidents. This is reflected in a higher average monthly cost of car insurance. On average though, young male drivers could pay more than young female drivers for auto insurance, except in states where companies are prohibited from considering gender in quoting practices.

The average cost for a 16-year-old female driver is $195 per month and $199 for 16-year-old male drivers. While the difference is not that significant, men tend to pay more for their car insurance policy, even as they become older drivers. When analyzing car insurance rates by age, teenagers pay way more on average, regardless of gender.

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How much does car insurance cost for 16-year-olds?

How much does car insurance for 16-year-olds cost?

Teens and young drivers usually pay the most for car insurance, but many insurance companies provide discounts to make the cost more manageable.

Auto insurance rates can be a bit pricey when you’re a new driver. Insurance companies recognize that this age group is less experienced and more high-risk. This can lead to more car accidents, increased property damage, and overall, more for an insurer to pay. On average, annual rates are much higher for young motorists, at around $2,400 for the year.

Parents might worry when they see how much it costs to get minimum coverage on teen car insurance, but it’s better to spend the money to make sure their young driver isn’t uninsured. There are also ways to save money on your teen’s insurance policy. Enrolling your new driver in driving school or a defensive driving course can lead to savings on insurance premiums.

See More: Car Insurance Quotes

Clearcover

Even though Clearcover isn’t as much of a household name as bigger insurance companies like GEICO or Progressive, it provides quality coverage at the cheapest average rates. Even better, it uses an app that makes it easy for customers to file claims and get their refunds back in a matter of minutes, instead of weeks like larger companies.

A few of the discounts that Clearcover offers to 16-year-old drivers include:

Travelers

Travelers is a leader in the car insurance space and is one of the largest insurers nationwide. It offers many policy options with different coverage levels and limits for people with all different driving habits, so you can always find something that works for you and your budget, even for young, inexperienced drivers.

A few of the discounts that Travelers offers to 16-year-old drivers include:

  • Early quote discount
  • EFT, pay in full, good payer discounts
  • Continuous insurance discount
  • Good student discount
  • Affinity membership discount
  • Safe driver discount
  • IntelliDrive® program discount

Elephant

One of the newer insurance companies, Elephant offers many discounts for teen drivers, which makes it easier for parents to add them onto their policy.

A few of the discounts that Elephant offers to 16-year-old drivers include:

  • Good student discount
  • Safe driver discount
  • Safety feature discounts
  • Multi-car discount

Direct Auto

Unlike other options on the list, Direct Auto specializes in offering coverage to drivers who are considered “high-risk” by other institutions. This makes them an excellent choice for drivers whose driving records have a few incidents on them or those struggling to find affordable car insurance elsewhere.

A few of the discounts that Direct Auto offers to 16-year-old drivers include:

  • Good student discount
  • Multi-car discount
  • Multi-car discount

Safeco

Safeco car insurance, a subsidiary of insurance giant Liberty Mutual is sold exclusively through independent agents and offers many options to customize your policy. It also rewards safe drivers with things like accident forgiveness, a diminishing deductible, and a partial refund of your policy premium for remaining accident-free.

A few of the discounts that Safeco offers to 16-year-old drivers include:

  • Good student discount
  • Student away at school discount
  • Accident forgiveness

See More: Best Car Insurance Companies

Best Auto Insurance Discounts for 16-Year-Olds

Putting teenagers on their parents’ policy might seem like a huge increase in costs, but it doesn’t have to be. Auto insurance companies reward young drivers for safe driving, getting good grades, having enhanced safety features in their cars, and more.

Discounts for 16-Year-OldsHow to Get ItCompanies That Offer It
Good Student DiscountUsually, a GPA of 3.0 higher qualifies you for good student discounts.GEICO, Allstate, Progressive, State Farm, USAA
Distant Student DiscountIf you’re starting college and leaving the car behind, you don’t have to pay for insurance that covers you as if you’re driving every day.State Farm, Progressive, Allstate
Bundling with Home InsuranceIf your parents own a home, ask them to make sure they’re getting auto insurance and home insurance from the same place.GEICO, Allstate, Progressive, State Farm, USAA
Driver TrainingAsk your auto insurance company for qualifying classes in your area.GEICO, Allstate, Progressive, State Farm, USAA

Tips for Cheaper Car Insurance

Even if you choose not to shop with the auto insurance companies listed above, there are still ways to get cheaper car insurance.

Shop Around for Car Insurance

Regardless of age, shopping around for car insurance can often be one of the most effective ways to save money. Each auto insurance company offers different discounts and weighs certain factors differently, making it more important to compare auto insurance quotes before selecting an insurance provider.

See More: Best and Worst Sites to Compare Car Insurance

Drive an Older, Safer Car

Sports cars and flashy high-performance cars usually cost more to insure. We suggest letting teens drive cars that are equipped with better safety features or ones that are older so they’re cheaper to replace in the case of accidents.

Select a High-Deductible Plan

A plan with a higher deductible means that you pay lower in a monthly premium, but you pay more when an accident happens before the insurance company starts paying its share.

Keep a Clean Driving Record

Staying accident-free is always rewarded. Policyholders who maintain a clean driving record, whether it be parents or children, benefit from cheaper monthly costs.

Maintain a Good Credit Score

Similarly, keeping a good credit score is a way to keep your auto insurance policy low before even adding your teenage driver.

Take Advantage of Discounts

Cash in on all the car insurance discounts you might be eligible for. Some might include:

Cheapest States for Car Insurance for 16-Year-Olds

16-year-old drivers who live in the following states will enjoy the low car insurance rates that come with their location:

StateInsurance CompanyCheapest Monthly Premium
North CarolinaDirect Auto$61
HawaiiFarmers$86
OhioNational General$123
IndianaElephant$128
IllinoisKemper$129
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

The Best Way to Compare and Get Cheaper Car Insurance

For teenage drivers, getting their first pair of keys should be exciting, not daunting. Protect your teenage driver and others without breaking the bank on car insurance premiums. A few simple adjustments, especially taking the time to search for car insurance quotes around the industry, can make a huge difference for your car insurance rates.

There’s no better way to get real quotes from the insurance providers that matter than with Insurify. Instead of contacting a dozen car insurance companies to get quotes, let our auto insurance comparison tool do the hard work for you. You’ll have the best data to identify which auto insurance companies are the best match for you so you can make the right choice.

Frequently Asked Questions

  • This depends on factors like gender, driving history, and driver’s education, but the average cost of car insurance is around $195–$199 per month.

  • Teenagers have a better shot at saving on car insurance when they compare car insurance rates from multiple insurance companies. Insurify makes comparing quotes easy it’s easy to use, free comparison tool.

  • Many car insurance companies reward safe drivers. Keeping your driving history free of claims, crashes, and accidents shows that you’re good on the roads and keeps others safe, too.

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Methodology

The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Maria Sanchez
Maria Sanchez

Content Writer at Insurify

Maria Sanchez is a freelance writer from Boston. Specializing in educational content, she enjoys making information accessible to the greater public. In her spare time, she enjoys playing piano, hosting dinner parties, and volunteering.

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