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Getting a driver’s license when you turn 16 is a milestone for many. Considering the insurance premiums of a 16-year-old driver, the thrill of a driver’s license may be short-lived.
Auto insurance for teen drivers can be surprisingly expensive, so we’ve broken down the rates to help you find the cheapest car insurance for 16-year-olds.
How much is car insurance for a 16 year old?
It costs an average of $2,735 a year to get a 16-year-old to have a parent’s car insurance. According to Forbes Advisor analysis. This is an additional charge of approximately $230 per month.
But compare this to the average car insurance premium for a 16-year-old driver with his own policy.
Also, don’t forget to check the total premiums for everyone in your family. Based on the companies analyzed, the average price of car insurance for a parent with a 16-year-old driver is $5,697 per year. The best auto insurance will be a policy with a good total cost and robust coverage.
Because newly licensed drivers lack experience, it is very expensive to insure a 16-year-old driver. A 16-year-old driver is more likely to have an accident and is more likely to make a claim, which leads to higher car insurance rates. As teen drivers become more experienced, car insurance premiums start to drop unless they get into an accident or get arrested for traffic violations.
What is the cheapest car insurance for 16 year old drivers?
Erie is the cheapest car insurance company evaluated to add a 16-year-old driver to a parent’s car insurance.
Adding a 16-year-old to a parent’s policy is usually much cheaper than adding a teenager to your own policy. Below is a comparison of car insurance premiums for a 16-year-old driver.
Cheapest car insurance for adding a 16 year old driver.
Adding a 16-year-old to existing insurance costs Erie $932 less than the national average ($2,735). Nationwide is her second cheapest company.
Cheapest car insurance company for 16 year olds.
Cheapest car insurance for parents and 16 year old drivers.
If you’re looking for new insurance for both your parents and your 16-year-old, Erie auto insurance is the cheapest, according to analysis from a major insurance company. USAA is the second cheapest and Geico is the third cheapest.
Cheapest auto insurance company for parent insurance for drivers aged 16.
Cheap auto insurance for 16 year old with own policy.
It is much more expensive for a 16-year-old to get his own auto insurance than it is for his parents. For a 16-year-old with her own insurance, her average annual car insurance premium is $8,765. That’s about $3,000 more than the cost of parent insurance ($5,697) with the addition of a 16-year-old driver.
Auto-Owners offers the cheapest auto insurance with unique policies for 16-year-old drivers compared to competitors we have evaluated. That’s about $3,380 less than the national average ($8,765). Geico has his second-lowest car insurance premium for his 16-year-old driver, $2,875 less than the national average.
Cheapest auto insurance company for 16 year olds with unique policies.
What Factors Affect Car Insurance Premiums for 16-Year-Old Drivers?
Age is a determinant of car insurance premiums, but it’s not the only one. Here are the various factors that affect car insurance premiums for 16-year-old drivers.
Year
Insurance companies consider inexperienced drivers to be more risky, so adding a teen to a parent’s car insurance will cost more. We cannot avoid a significant increase, but we can take steps to minimize the economic impact.
sex
Auto insurance companies base their rates on the premiums paid. A teenage male causes more insurance claims than her teenage female, so insurance premiums are also higher. Of course, billing may also increase the price on your next renewal.
position
Location-related factors that often affect the cost of car insurance include:
- Claims related to weather and disasters such as hail and floods.
- Frequency of car accidents.
- Frequency of claims related to auto theft and vandalism.
- Vehicle repair costs, including parts and labor.
- Medical bills. This affects the amount an insurance company has to pay for a damage claim.
car type
When you purchase collision and comprehensive insurance, your auto insurance will have to pay for claims related to car theft, vehicle damage from collisions, backing up to a pole, trees falling on your car, etc. If your vehicle is more expensive to repair or replace than other vehicles, the additional costs will be reflected in the Collision and Comprehensive Coverage rates.
What discounts are available for children under the age of 16?
Car insurance discounts for 16-year-olds may not be great because of their strong track record as dangerous drivers, causing insurance claims. But it’s worth checking out what your teen can get.
good student discount
A “good student discount” is easy if your 16-year-old driver qualifies. I don’t know what to add.
Forbes Advisor’s analysis of leading student discounts found an average savings of 4%.
Eligibility rules for this discount vary slightly by company, but generally students must be within a certain age range, attend high school or college full-time, and have good grades.
A “good student” usually means one of the following:
- Top 20% of class.
- A grade average of B or higher.
- Average of 3.0 or higher.
- A list of deans, honorary rolls, or equivalent.
- Scored in the top 20% on a nationally standardized test such as the PSAT within the last 12 months.
Driving class discount
This discount isn’t very common, but it’s worth it when your insurance company offers it. 16 year olds are eligible for a training discount once they have completed an approved driver training program. Before you expect a price drop, make sure the course you’re looking at is approved for the discount.
Can a 16-year-old child have their own insurance?
A 16-year-old can have his own insurance if he has a vehicle registered in his name. However, this proves to be prohibitively expensive. You can usually save money by getting a 16-year-old driver on your parent’s car insurance.
How to get the cheapest insurance at 16
Here are some tips for getting the cheapest car insurance for 16-year-olds.
get multiple quotes
Putting a 16-year-old on auto insurance can make a company that used to be cheap to parents no longer competitively priced. Adding a new driver is a good time to compare auto insurance quotes to see where a better deal might be.
Explore discount opportunities
Focus on great student discounts and markdowns for completing driver education classes. However, please check with your auto insurance agent for other discounts that apply to families with drivers aged 16.
take an affordable car
Cheaper vehicle repairs and replacements mean cheaper collision and comprehensive insurance costs. Teenage drivers need a sturdy and safe car, but avoid luxury cars. absolutely Avoid sports cars if you want to keep your premiums down.
increase deductible
Select a deductible when purchasing Collision and Comprehensive insurance. You can usually save money with a higher deductible, such as $1,000 instead of $500.
Ask your auto insurance agent to provide you with quotes for different levels of higher deductibles. Then decide if the savings are worth it, keeping in mind that 16-year-old drivers are more likely to crash into something than adults.
Compensation amount
You may be toying with the idea of reducing coverage to save money. But if you have a 16-year-old driver, now is not the time to skimp on auto insurance coverage. Teenagers are more likely to be involved in a car accident, so they are more likely to need proper insurance for claims.
Average car insurance premiums by state for 16-year-olds
Here’s a state-by-state comparison of the cost of adding a 16-year-old driver to a parent policy with the cost of a separate auto policy.
Average cost by state to add a 16-year-old driver to parent’s and own policies
Average car insurance premiums for 16-year-olds by gender
In addition to parental insurance, insuring a 16-year-old man is 25% more expensive than insuring a woman of the same age. Teenage males have higher insurance premiums than females. This is because teenage males are more likely to have car accidents and have more car insurance claims. The more risk you take, the more payouts you will make.
Average car insurance premiums by gender for 16-year-old drivers with parent insurance
Male drivers pay more than females when buying their own insurance at age 16.
Average car insurance premium by gender for 16 year old own policy
Best Auto Insurance Company 2023
With so many auto insurance companies to choose from, it can be difficult to know where to find the right auto insurance policy. We evaluated insurance companies to find the best car insurance companies.
methodology
We used data from Quadrant Information Services, a provider of insurance data and analytics. Fees are based on his 16-year-old driver with a clean record insuring a Toyota RAV4 with his parents. Policy limits are $100,000 personal injury liability coverage per person, $300,000 per accident, $100,000 property damage liability (known as 100/300/100), uninsured motor vehicle coverage, and Collision and includes a $500 deductible.
Cheap car insurance for 16 year olds FAQ
Why is car insurance so expensive for a 16 year old?
A 16-year-old driver has no driving experience and is more likely to get into an accident, resulting in higher insurance premiums. Auto insurance companies typically charge riskier drivers more than safe and experienced drivers. According to the Insurance Institute for Road Safety, the risk of car accidents, especially fatal ones, is highest at age 16 and age 17.
Auto insurance premiums for 16-year-olds are very high, so comparing auto insurance quotes to find the best car insurance company is essential. Also, keeping a clean driving record helps 16-year-olds find better prices now and in the future.
Can I add a 16-year-old to an existing policy?
Yes, you can add a 16-year-old driver to your existing car policy. Adding a teen driver to your insurance is usually a much cheaper option than buying your own insurance for a teenager.
When it comes time to add your 16-year-old to your car insurance, look for the lowest premium possible. The cost of adding a teen driver varies widely between insurers. Be sure to ask about discounts available to teens, such as discounts on good student car insurance.
At what age do car insurance premiums start dropping?
Auto insurance prices continue to drop as teens get older, and by age 21, it costs significantly less to get a parent’s policy than it did at 16. For example, adding her 16-year-old to parent insurance costs an average of $2,735 per year. At 17, her annual income drops to $2,360, and at 21, he drops to $1,110.
Put another way, the average annual cost for a 16-year-old driver with their own policy is $8,765. A 21-year-old driver saves $3,459, or about $5,000. To find cheaper auto insurance for teens, research each year to see if you can save even more by switching auto insurance companies.
Does Safe Driving Affect the Cost of Auto Insurance for 16-Year-Old Drivers?
Yes, safe driving affects car insurance premiums for 16-year-old drivers. Driving records are one of the key factors insurers take into account when pricing insurance. Generally, the safer you drive, the lower the fare.all else being equal
Accidents and traffic violations can increase car insurance premiums regardless of the driver’s age. For example, Forbes Advisor analysis shows that, on average, car insurance rates increase by 24% after speeding. If you’re already paying a lot for your car insurance as a newly licensed driver, the additional premiums for violations and accidents can significantly increase your insurance premiums.
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