120+ more*Quotes generated for Insurify users within the last 10 days. Last updated on August 1, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on August 1, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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Updated
The cheapest car insurance companies for 16-year-old drivers are USAA, State Farm, and Erie, according to Insurify data. Teen drivers have a higher risk of accidents than more experienced drivers, so insurers typically charge them more expensive premiums to account for this.
The average 16-year-old driver pays $228 per month for liability-only insurance and $438 per month for full coverage, compared to the national averages of $98 and $186 for all drivers.
You can use several strategies to reduce your premiums, including comparing rates from multiple insurance companies and joining your parents’ existing policy.
Here’s what to know about getting the cheapest car insurance for a 16-year-old driver.
A 16-year-old driver pays much more for car insurance on average than an older driver due to the risks they pose as an inexperienced driver.
Teen drivers can earn discounts for getting good grades and enrolling in a defensive driving course.
Joining a parent’s policy is typically cheaper than having your own policy as a 16-year-old because you can earn a multi-vehicle discount and benefit from your parent’s driving history.
The average overall cost of car insurance for 16-year-olds is $331 per month. Many teenagers join their parents’ existing car insurance policy for slightly lower rates.
Teens can save money by earning multi-vehicle discounts and benefiting from joining a longer-standing policy with experienced drivers. That said, teen drivers face higher premiums even if they join their parents’ policy because they pose a high risk to insurance companies.
Teenagers have the highest accident rate by age group. Though they represent under 4% of licensed drivers, teen drivers ages 16 to 19 account for nearly 9% of all car accidents, according to data from the National Safety Council.[1]
Below, you can see the average cost of liability and full-coverage insurance for 16-year-old drivers.
Coverage Type | Average Monthly Quote |
|---|---|
| Liability only | $228 |
| Full coverage | $434 |
USAA, State Farm, and Erie are three of the cheapest car insurance companies for 16-year-old drivers in the U.S. That said, the cheapest auto insurer will depend on the coverage you’re looking for, driving record, location, and more.
You can compare average liability and full-coverage rates from the cheapest car insurance companies for teenage drivers in the table below.
Insurance Company | Average Quote: Liability Only | Average Quote: Full Coverage |
|---|---|---|
| USAA | $120 | $243 |
| State Farm | $138 | $280 |
| Erie | $161 | $295 |
| GEICO | $180 | $335 |
| Root | $189 | $326 |
| The General | $189 | $470 |
| Allstate | $193 | $400 |
| American Family | $195 | $395 |
| National General | $238 | $474 |
| Nationwide | $243 | $494 |
| Liberty Mutual | $276 | $440 |
| Travelers | $283 | $569 |
| Farmers | $288 | $588 |
Liability rates start at $58 per month for teen drivers
Car insurance is expensive for 16-year-olds for the following main reasons:
Lack of driving experience: Insurers typically charge younger drivers higher premiums to account for their limited driving experience and higher susceptibility to distractions.[2]
Higher accident frequency: Car insurance is expensive for 16-year-old drivers because they’re at a higher risk of accidents — particularly fatal ones — than other age groups. Per mile driven, the fatal crash rate for 16- to 19-year-old drivers is almost three times the rate for drivers older than 20.[3]
Higher claims severity: The fatal crash rate is highest among 16- and 17-year-olds, according to the Insurance Institute for Highway Safety (IIHS) and the Highway Loss Data Institute. More severe accidents lead to more expensive claims.
Risk modeling: Insurance companies base premiums on your risk factors, including age, location, and driving record. Because teenagers have high rates of severe car accidents, auto insurers typically charge them more for coverage.
Having a teen driver on a family’s policy can increase premiums by as much as 50% to 100%, according to the Insurance Information Institute.[4]
Yes, it’s typically cheaper to add your teen driver to your insurance rather than to have them secure their own policy. On average, the overall monthly cost of car insurance is $161 for a teen on a parent’s policy and $265 for a teen on a separate policy.
Joining a parent’s policy can help teens earn lower rates for the following reasons:
Multi-driver discounts: Adding another driver to the policy may result in a discount.
Multi-car discounts: Similarly, many insurance companies offer a discounted premium for policyholders with two or more cars.
Shared risk profile: Having older, more experienced drivers on the policy can help counteract the high risk posed by a 16-year-old driver.
Longer insurance history: The longer your insurance history is, the better. Some auto insurers even offer loyalty discounts for customers.
It’s worth noting that if your teen is younger than 18, they won’t be able to buy a policy of their own without written consent from a parent or guardian. Adding them to your coverage can simplify the process.
Below, you can see how the average cost of coverage for teens on a parent’s policy compares to costs for teens on a separate policy.
Policy Type | Average Monthly Quote: Liability Only | Average Monthly Quote: Full Coverage |
|---|---|---|
| Teen on a parent’s policy | $111 | $211 |
| Teen on a separate policy | $182 | $347 |
Still, adding your teen to your existing car insurance policy isn’t always a good idea. Before doing so, you’ll want to consider the following pros and cons:
You may qualify for additional discounts, such as a multi-vehicle discount.
You can make claims on your teen’s behalf if they need to file one.
It can increase the premium of your existing policy significantly (by 50% to 100% sometimes).
If your teen is in an accident or gets a ticket, it could increase your policy premium.
Your existing premium will remain the same.
If your teen is in an accident or gets a ticket, it won’t affect your premiums.
Your teen may have difficulty finding an insurance company that will cover them. If they do find an insurer, they may pay more for coverage than they would if added to your policy.
You won’t be able to file claims on their behalf if they get into an accident.
While it’s true that 16-year-old drivers are subject to higher premiums than most drivers, several strategies can help reduce a young driver’s premium and make your household’s policy more affordable.
Here are four ways you can lower your car insurance costs as a teen driver:[5]
Many car insurance companies offer good student discounts, so keeping your grades high (usually at a B average or higher) may lower your premiums as a new driver.
State Farm, for example, offers a discount of up to 25% for good grades until age 25. That could mean as much as $100 off a $400 monthly premium, saving you $1,200 per year.
Taking a driver’s education program or defensive driving course can also qualify you for a discount with certain insurance companies, as it reinforces safe driving and reduces your likelihood of an accident.
Some insurance companies also offer safe driving programs, which use a mobile app to monitor your driving for a set period of time. After that period ends, you can get a discount on your premium if you’ve proven safe driving habits. State Farm’s Drive Safe & Save and Progressive’s Snapshot programs are two examples of this.
The type of car you drive can make a big difference in your premium.[6] Insurers consider a car’s overall safety record, how well it protects occupants, how much damage it can inflict on other vehicles, the costs to repair or replace it, and its likelihood of theft.
Check out the crash safety ratings of every vehicle you consider. You can start by looking at IIHS vehicle safety ratings and looking for cars with added safety features, such as airbags, anti-lock brakes, collision warning systems, and backup cameras.
Shopping around for your car insurance policy is the best way to secure a lower premium. Not only do insurance companies vary in pricing strategy, but they also offer different discounts, which could help reduce what you pay.
Make sure to get quotes from at least a few companies and compare each on pricing, discounts, and customer service. If you need to reduce your premiums further, opting for a higher deductible may help.
*Quotes generated for Insurify users within the last 10 days. Last updated on August 1, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on August 1, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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 it won’t cover your teen or their car in an at-fault accident. This means you’d be financially responsible for repairing or replacing your teen’s car.
As the parent of a teen driver, consider these extra coverages when adding a teen driver to your policy:
If your teen has an accident with another vehicle or hits an object such as a fence, tree, or light pole, collision insurance helps repair or replace the car.
Comprehensive insurance can help cover damage to your teen’s car from non-collision events, 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.
If a driver with limited or no insurance hits your 16-year-old, uninsured/underinsured motorist coverage will help pay for your child’s car repair costs or medical bills. UM/UIM also covers damage caused by hit-and-runs.
Medical payments coverage can help pay for costs associated with injuries your teen driver sustains in an accident that they cause. This can include hospital visits, X-rays, and other medical expenses.
If you’re considering adding a 16-year-old driver to your policy or helping them buy car insurance for the first time, this additional information can help you make a decision.
Most car insurance companies and agents recommend adding a teenage driver to their 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.
Car insurance premiums go down as you age, but generally speaking, insurance companies charge the highest rates for drivers younger than 25. The lowest premiums tend to go to drivers ages 60 to 69, according to Insurify data. Drivers in this age group have an average car insurance cost of $124 per month.
USAA is the cheapest car insurance company for a 16-year-old driver, with average monthly rates of $120 for liability-only coverage and $243 for full coverage. State Farm, Erie, and GEICO also have some of the lowest premiums for 16-year-olds.
You can have your own car insurance policy at age 16, but you’ll generally pay less by getting on an existing policy with a parent or guardian. This may also qualify you for a multi-vehicle discount, which can reduce your premium even more. If you opt for your own policy, make sure to compare several insurance companies. This will ensure you get the best coverage and lowest possible premium for your situation.
Yes, it’s typically cheaper to join your parents’ insurance policy than to purchase a separate policy. On average, the cost of full-coverage car insurance is $211 per month for teens on a parent’s policy and $347 for teens on a separate policy.
Car insurance for a 16-year-old costs $228 per month for liability-only coverage and $434 for full coverage on average, according to Insurify data.
Teen drivers can often earn discounts for maintaining good grades and completing a defensive driving course. Teens who join a parent’s policy can also help earn multi-driver and multi-vehicle discounts.
You may pay lower premiums if you drive an IIHS-designated Top Safety Pick+ vehicle, including the 2026 small car picks: Kia K4, Mazda 3, Nissan Sentra, Subaru Crosstrek Hybrid, and Toyota Prius. Generally, 16-year-old drivers should stick to affordable, safe vehicles to qualify for lower premiums.
Insurify data scientists analyzed more than 250 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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)
)
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National Association of Real Estate Editors member
Bylines include Forbes, Bankrate, and CBS News
Featured in
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Media relations director for Insurance Information Institute
20+ years in insurance and communications
Impartial, independent expert
7+ years experience in data analysis
Ph.D. in Computational Biology
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
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