How Much is Car Insurance for a 16-Year-Old in the USA?
This post contains affiliate links to products and services. We may receive compensation when you click on links.
Learning to drive marks a major milestone in a young adult’s life, and in more ways than one. Not only does it mean they have the freedom to go where they want, but for many teenagers, searching for car insurance is usually the first time they realize how expensive and seemingly unfair adult life can be.After all, 16-year-old drivers in the US could be quoted anywhere from $4,000 to over $10,000 per year! So, why are those prices so high, and is there anything you can do to make them cheaper?
Full Coverage 16-Year-Old Car Insurance Rates in all 50 States
Car insurance prices can differ greatly from state to state.In California, for instance, a 16-year-old can expect to pay an average of $6,257, but this drops to just under $5,000 when they are added to a parents’ policy.Take a look at the table below for a full guide. Bear in mind that these are state averages, and the actual quotes you receive could be higher or lower depending on other factors (including your car and previous driving record). These prices are also based on full coverage, so they include both comprehensive coverage and collision coverage.
| State | 16-Year-Old Females | 16-Year-Old Males | Females with Parents | Males with Parents |
| Alaska | $5,137 | $5,995 | $2,847 | $3,117 |
| Alabama | $6,318 | $7,176 | $3,128 | $3,400 |
| Arkansas | $7,165 | $8,256 | $3,549 | $3,915 |
| Arizona | $7,415 | $8,592 | $3,929 | $4,456 |
| California | $6,257 | $6,257 | $4,919 | $4,919 |
| Colorado | $7,488 | $8,576 | $4,173 | $4,492 |
| Connecticut | $9,674 | $11,001 | $2,981 | $3,259 |
| Washington D.C. | $6,910 | $8,683 | $3,540 | $4,028 |
| Delaware | $10,470 | $11,999 | $3,237 | $3,540 |
| Florida | $10,870 | $11,960 | $6,178 | $6,639 |
| Georgia | $6,651 | $7,969 | $3,398 | $3,743 |
| Hawaii | $1,517 | $1,517 | $1,338 | $1,338 |
| Iowa | $4,557 | $5,143 | $2,263 | $2,417 |
| Idaho | $5,316 | $6,074 | $2,257 | $2,481 |
| Illinois | $7,615 | $9,156 | $3,416 | $3,928 |
| Indiana | $5,285 | $5,943 | $2,821 | $2,993 |
| Kansas | $5,566 | $6,280 | $2,968 | $3,223 |
| Kentucky | $8,580 | $9,752 | $4,418 | $4,805 |
| Louisiana | $13,035 | $15,540 | $7,081 | $8,014 |
| Massachusetts | $7,067 | $7,067 | $3,706 | $3,706 |
| Maryland | $5,740 | $7,047 | $4,251 | $4,909 |
| Maine | $4,358 | $5,035 | $2,491 | $2,821 |
| Michigan | $8,199 | $8,199 | $7,781 | $7,781 |
| Minnesota | $4,890 | $5,827 | $3,334 | $3,563 |
| Missouri | $8,399 | $9,799 | $5,190 | $5,858 |
| Mississippi | $6,271 | $7,195 | $3,278 | $3,570 |
| Montana | $6,922 | $6,922 | $3,428 | $3,428 |
| North Carolina | $3,894 | $3,894 | $3,404 | $3,404 |
| North Dakota | $6,606 | $7,685 | $2,459 | $2,722 |
| Nebraska | $6,924 | $8,128 | $3,468 | $3,767 |
| New Hampshire | $5,418 | $6,229 | $2,260 | $2,470 |
| New Jersey | $8,999 | $10,241 | $4,595 | $5,125 |
| New Mexico | $5,993 | $6,598 | $3,364 | $3,647 |
| Nevada | $9,201 | $10,200 | $4,750 | $5,148 |
| New York | $6,147 | $7,397 | $3,849 | $4,378 |
| Ohio | $4,744 | $5,339 | $2,367 | $2,577 |
| Oklahoma | $7,158 | $8,419 | $3,938 | $4,755 |
| Oregon | $5,585 | $5,912 | $3,102 | $3,280 |
| Pennsylvania | $7,888 | $7,888 | $3,386 | $3,386 |
| Rhode Island | $10,114 | $12,135 | $4,303 | $4,839 |
| South Carolina | $6,527 | $7,274 | $3,873 | $4,030 |
| South Dakota | $5,751 | $6,674 | $2,638 | $2,959 |
| Tennessee | $6,399 | $7,338 | $2,950 | $3,223 |
| Texas | $8,036 | $9,162 | $4,330 | $4,733 |
| Utah | $7,467 | $8,487 | $4,253 | $4,672 |
| Virginia | $5,405 | $6,382 | $3,130 | $3,556 |
| Vermont | $3,973 | $4,698 | $2,424 | $2,687 |
| Washington | $5,710 | $6,270 | $3,441 | $3,635 |
| Wisconsin | $6,519 | $7,543 | $4,220 | $4,764 |
| West Virginia | $6,569 | $7,561 | $3,405 | $3,854 |
| Wyoming | $5,702 | $7,271 | $3,355 | $4,015 |
Why is Car Insurance so High for 16-Year-Olds?
When you apply for car insurance, the insurance provider will evaluate your personal circumstances, history, lifestyle, and more to create a risk profile. This will tell them how likely you are to make a claim and how serious and expensive those claims are likely to be.They have a wealth of data at their disposal and even seemingly insignificant things can impact their eventual quote.Age and experience are some of the biggest considerations and therefore have a significant impact on the price.Young drivers are inexperienced and prone to more reckless behavior, thus making them more of a liability than older and more experienced drivers.According to the Insurance Institute for Highway Safety (IIHS), 62% of deaths among passenger vehicle occupants in 2021 were aged between 16 and 19, and 57% of these deaths occurred in vehicles driven by other teens. The younger the driver is, the more concerning these statistics become, and that’s why 16-year-olds are hit with the highest car insurance premiums.Incidentally, while rates usually get cheaper with age (assuming all other variables remain the same), they begin to increase again after 70. Again, this is because senior drivers are more likely to be involved in accidents and make costly claims.
Does it matter if the driver is male or female?
Statistically, it makes a massive difference. But whether that difference is reflected in your rates or not depends on where you live.According to a report conducted by the IIHS, motor vehicle crashes kill more men than women every year. This is largely because men are more likely to engage in dangerous driving, such as not wearing seat belts, driving over the speed limit, and driving under the influence of drink or drugs.With this in mind, insurance companies may consider an applicant’s gender when setting their rates. But such practices are not allowed in a small number of states, including California, Hawaii, and Montana. These exclusions may also spread to other states in the coming years.
How to Get Cheap Car Insurance as a 16-Year-Old
Car insurance is clearly very costly for young drivers, but there are a few ways to save money and secure more reasonable rates.
Compare Car Insurance Rates
Never accept the first quote you receive. Rates can differ considerably from one insurance company to the next, so compare as many of them as you can, including national and local insurers.Some of the cheapest options include Erie Insurance, Geico, and State Farm, but don’t limit your search to these three.
Look for Car Insurance Discounts
Car insurance companies offer a number of different discounts, including a bundling discount for combining insurance policies and discounts for completing a defensive driving course. These might be out of the question for 16-year-old drivers, but there are a few options available.For instance, you can often get a small discount for setting up auto-pay and an even bigger one for paying your premiums upfront. Of course, if you’ve just been quoted a 5-figure sum, paying for it all at once might not be feasible.Discounts specifically targeted toward teen drivers include “good student discounts”. These give drivers a sizeable discount for maintaining a high grade point average.There is also something known as a parent-teen driving contract, whereby teen drivers can sign a contract with their parents to agree to specific rules.
Keep Your Driving Record Clean
Although it won’t help you much when first applying for auto insurance, keeping a clean driving record will make life easier (and cheaper) in the future. Car insurance companies place a lot of value on your driving history, so stay sensible behind the wheel and avoid crashes and collisions where possible.
FAQs
What else is considered when determining car insurance costs?
In addition to age and driving record, auto insurance companies also look at the car. They consider how expensive it is to fix, as well as how often it’s involved in accidents and how frequently it is stolen or vandalized. Other considerations include the policyholder’s exact location, as well as where they store their car and how often they drive.In some states (not including California), a car insurance company can consider the applicant’s gender and credit score, as research suggests that males are higher risk than females and people with low credit scores are more likely to claim.
What are the cheapest car insurance companies for young drivers?
Some of the cheapest car insurance is available from regional providers, such as Island Insurance in Hawaii and New Jersey Manufacturers in New Jersey, Connecticut, Maryland, Ohio, and Pennsylvania. Nationwide is always a good option, and you can usually get cheap car insurance from Erie, Geico, and State Farm.Check with all available options and remember that the best car insurance provider isn’t always the one with the lowest rates. You also need to think about coverage options, reputation, and customer support.
Can a 16-year-old get car insurance in California?
Yes, 16-year-olds can get car insurance in California, but as with the rest of the country, the rates are usually quite high. They can vary from a couple of grand for basic liability coverage to over $6,000 for full coverage.
What are the best car insurance companies for young drivers?
Geico has a solid reputation and tops many lists for the best auto insurance, as well as most other forms of insurance. USAA is always a good option, if you qualify, and State Farm is a great insurer as well.
Why is car insurance for 16-year-olds so expensive?
Auto insurance rates are high because young drivers present a higher risk. The insurance company doesn’t want to take a gamble. It wants to do everything it can to guarantee a profit, and if it charged 16-year-olds the same price as older and more experienced drivers, that just wouldn’t happen.
How much is insurance for a new driver in AZ?
It depends on the driver’s age and several other factors. A 16-year-old, for instance, can expect to pay an average of between $7,000 and $8,600 a year for full coverage, as per the table above.
Do teen drivers need full coverage insurance?
No, as with all drivers, teens only need to meet the minimum requirements for state insurance. That usually means bodily injury liability coverage and property damage liability coverage, and doesn’t include comprehensive and collision coverage. However, full coverage may be required if the car is financed and it’s also recommended if they are driving an expensive vehicle due to their inexperience.
Summary: Cost of Car Insurance for 16-Year-Old Drivers
The average car insurance cost for a 16-year-old in the US is around $6,000 for full coverage, but it varies greatly from state to state and will obviously be much cheaper if full coverage isn’t needed and discounts are applied.Either way, while car insurance is definitely not cheap for 16-year-old drivers, it is essential, and the good news is that it usually gets a lot cheaper and easier with age.
