15+ years in personal finance advising and writing
Holds Chartered Life Underwriter (CLU) designation
Bob has spent 15+ years helping people plan their financial lives. As a freelance writer, he’s covered insurance, mutual funds, stocks and bonds, and more.
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
Mark FriedlanderDirector, Corporate Communications
Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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Car insurance rates for teenagers are typically expensive. But it’s still cheaper to add a 16-year-old driver to a parent’s policy than for them to get their own policy.
Comparison shopping for car insurance can help 16-year-old drivers save hundreds of dollars annually. Make sure to compare auto insurance quotes from at least three different insurers before purchasing a policy to get an accurate view of what’s available to you.
Quick Facts
Many discounts are available to teen drivers.
Teens are involved in more fatal auto accidents than any other age group.
Hugo offers the cheapest auto rates for 16-year-olds, at $113 per month, on average. But the insurer only operates in 13 states.
How much is car insurance for 16-year-olds?
When shopping for car insurance for a 16-year-old driver, you’ll notice that rates vary significantly by insurer. They can cost anywhere from $113 per month to $359 per month, on average.
Insurers consider multiple factors when calculating car insurance rates, including your age, driving experience, car model, and location. Those factors can push car insurance rates even higher for young drivers.
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Factors affecting car insurance rates for 16-year-olds
Insurance companies consider many factors when determining car insurance rates for 16-year-olds. Three primary factors are:
Age and driving experience
Teenage drivers are the least experienced drivers on the road — particularly newly licensed 16-year-olds. Younger drivers are at a higher risk for at-fault accidents and moving violations, according to the Insurance Information Institute.[1] And as risk rises, so do premiums.
Car make and model
Generally, the newer the make and model of your car, the more it’ll cost to insure (exceptions being collector’s and classic cars). For example, a 2023 Tesla Model S will cost more to insure than a 2018 Ford Focus because it’ll cost an insurance company more to repair the Tesla if it’s involved in an accident, stolen, or vandalized.[2]
"You can also get a car that is not financed and just have liability and uninsured motorist coverage so that the cost is not as high for young drivers,” says Cindy Canas, owner of Pinky’s Insurance Agency in Orcutt, California.
Location
The location where a 16-year-old driver lives and drives also affects their car insurance rates. Some ZIP codes have higher risk factors than others, and insurers consider this when setting rates. Areas with a high number of vehicle thefts and break-ins will likely be more expensive for car insurance.
The cheapest car insurance companies for 16-year-olds
No two car insurance companies have the same rates, as you can see from the table below. Rates are influenced not only by the three factors looked at above but also by many others, including the company’s claims experience, which is how much it’s paid out in losses caused by 16-year-olds. Take a look at the vast difference in rates.
Insurance Company
Average Monthly Quote
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Insurify uses an in-house, proprietary method to rate and review the best car insurance companies. The Insurify Quality (IQ) Score uses more than 15 crucial criteria, including average premiums, customer satisfaction, discounts, third-party ratings, and more, to calculate a final score for a company.
Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings. With the IQ Score, Insurify is able to provide quantitative ratings for drivers to better compare car insurance companies and make informed decisions to meet their coverage needs.
Insurance companies typically offer discounts to help policyholders reduce their car insurance costs and to reward drivers for good driving habits and behaviors. Teens might benefit from several discounts aimed at young drivers.
Good student discounts
Many auto insurance companies offer reduced rates for students who meet a certain grade threshold. GEICO and State Farm both offer good student discounts with different criteria.
GEICO: Full-time students with good grades can get a discount of up to 15% on certain coverages by maintaining a grade average of “B” or better. Membership in certain student organizations can also earn you a discount with GEICO.
State Farm: Teen drivers can save up to 25% by maintaining a grade average of “B” or better. A discount is also available to students younger than 25 who move away to school and only drive while at home during school vacations and holidays.
Driver’s education programs
Some insurers give discounts to students under the age of 25 who’ve completed a driver’s education program. For example, Allstate offers discounted rates for students who have successfully completed the teenSMART driver education program. State Farm offers Steer Clear, which rewards young drivers with discounts if they complete the program's requirements, including five hours of driving monitored through a telematics app.
Insurers consider safety when it comes to your car insurance rates. Having an anti-theft system, airbags, and anti-lock brakes can earn you a discount with some auto insurance companies. The type of vehicle your teen drives also affects their rates. Some vehicles cost much more to repair and replace, often due to the scarcity or price of their parts.
Compare car insurance rates
Parents often experience “sticker shock” when they see how much their car insurance premiums increase by adding their 16-year-old to their auto policy. To get a sense of coverages available to you, compare rates from at least three insurers when you add your teen driver. Use a quote-comparison site or go through an agent.
Best car insurance companies for 16-year-olds
Discounts can make the difference between your preferred auto insurer being affordable or unaffordable. Several insurers offer good discounts for teen drivers, including:
teenSMART driver educationprogram, discount for attending school 100 miles away from where car is garaged discount, good student discount, Drivewise safe-driving discount, Milewise low-mileage discount
Good student discount, distant student discount, teen driver discount
Car insurance coverage for 16-year-olds
Your state’s mandatory minimum coverage will include liability coverage, but not collision and comprehensive coverage, which you should strongly consider if you have a teen driver. Liability-only coverage only pays for injury and damage to others and their vehicles, so your teen and their car won’t be covered in an at-fault accident. This means you would be financially responsible for repairing or replacing your teen's car.
As the parent of a teen driver, consider these add-ons when adding a teen driver to your policy:
Collision coverage
If your teen is involved in an accident with another vehicle or hits an object such as a fence, tree, or light pole, collision coverage helps repair or replace the car — unlike liability-only coverage, which only pays for damage or injury to other drivers involved in the accident.
Comprehensive coverage
Comprehensive coverage can help cover damage to your teen’s car from things like theft, vandalism, fire, hail, or flood. It helps pay to repair or replace the vehicle (up to the vehicle’s actual cash value) minus any deductible, which is the amount you’ll pay out of pocket before the insurance company reimburses you for a covered claim.
Uninsured/underinsured motorist coverage
If your 16-year-old is hit by a driver who either doesn’t have insurance or whose liability limits aren’t enough to cover your child’s car repair costs or medical bills, uninsured and underinsured motorist coverage will help pay those costs. UM/UIM also covers damage caused by hit and runs.
Medical payments coverage
Medical payments coverage can help pay for costs associated with injuries caused by your teen driver in an accident. This can include hospital visits, X-rays, and other medical expenses.
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Car insurance for a 16-year-old FAQs
If you’re considering adding a 16-year-old driver to your policy or helping them buy car insurance for the first time, consider the answers to these commonly asked questions below before making a decision.
Should you add your 16-year-old to your policy or get a separate policy?
Most car insurance companies and agents recommend adding a teenage driver to the parents’ policy rather than having them purchase their own. Teenagers have little driving experience, so insurers consider them high risk and charge them higher premiums to account for that risk.
Does your 16-year-old need to be on your car insurance if they only drive occasionally?
Yes. Once your teenager passes their driver’s test and receives their license, auto insurance is usually mandatory if they want to drive.
Why is car insurance so expensive for 16-year-olds?
Car insurance is so expensive for 16-year-old drivers because they are some of the most accident-prone drivers on the road. According to the III, young drivers, while making up only 5.1% of all licensed drivers in 2020, accounted for 8.5% of all drivers involved in fatal crashes.[3]
What is Hugo car insurance?
Through its Flex policies, Hugo offers on-demand auto insurance that allows drivers to pause and restart coverage so they only pay for insurance on days when they actually drive. Unlimited Basic and Unlimited Full policies can't be paused.
Drivers can purchase coverage for as little as three days or as long as six months, with no down payment. Hugo is currently available in Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Mississippi, Ohio, Pennsylvania, South Carolina, Tennessee, and Texas. Its exact policy offerings vary from state to state.
Having spent more than 15 years helping people plan their lives financially, Bob mastered many different financial products to help people achieve their financial goals, including life insurance, disability insurance, mutual funds, and stocks and bonds. He earned the Chartered Life Underwriter (CLU) designation and held numerous securities licenses. Bob is an internationally published poet and is now a freelance writer living in North Texas with his wife and Doberman puppy.
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
Mark FriedlanderDirector, Corporate Communications
Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
