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how much is auto insurance for a 16 year old?

How Much Is Auto Insurance for a 16 Year Old?

According to a recent report, around 70% of high school students have a driver's license. Is your teenager preparing to join those ranks?

Before they get behind the wheel, you likely have a few questions. Chief among them might be, "How much is car insurance for a 16-year-old?"

We're talking about precious cargo here, and it pays to be prepared. Today, we're sharing the numbers and facts you need to know. 

Insuring New Drivers

As you might expect, adding a teen driver to your current auto owner's insurance policy will raise your monthly rate. 

On average, most premiums will go up by about 130%, which can equal around $2,000 or more in annual upcharges. 

Why is this the case? Put simply, new drivers are inexperienced, which makes them more dangerous on the road. This is true even if they scored well on their Driver's Education courses. 

Across all populations, the risk of a motor vehicle crash is highest among teenagers 16 to 19 years old. This danger is especially prevalent in the first few months of licensure.

Recent data from the National Household Travel Survey shows that the crash-per-mile-driven rate for 16-year-olds is 1.5 times that of older teens. More accidents equal more insurance claims, which naturally drives up your costs. 

Adding a Teen Driver to Your Policy

When you're ready to add a teen driver to your existing auto policy, it helps to know the steps that can help you secure a favorable rate. 

First, speak to your insurance agent about the upcoming milestone. The best auto insurance companies have representatives who can walk you through this policy change, step by step. 

Ideally, have this conversation before your teen gets their learner's permit. Many policies will cover your teen at no additional costs while they're in this phase, though this isn't always the case. 

From there, discuss your plans for the future. If you want to add your teen to your current policy, then your agent should be able to help you estimate your cost increases. This way, you can start saving ahead of time. 

While most will recommend liability limits of at least 100/300/100, yours may suggest a different standard. 

Should They Get Their Own Policy?

In most cases, it will be less expensive to add your teen driver to your own auto insurance policy. However, you may consider putting them on their own policy if you live in a state where the price isn't much higher to do so.

As long as your child resides at the same address as you, then they can remain on your policy. This is the case even if they drive a vehicle that's different than your own.

How Much Is Car Insurance For a 16 Year Old?

As mentioned, adding your teen driver to your policy will cost you around 130% of what you're already paying to insure the vehicles in your family. There isn't an exact number that fits every household, so talk with your agent to understand the real calculations. 

One factor to keep in mind? You may wind up paying even more if your teen driver is male.

According to the Centers for Disease Control and Prevention (CDC), male teenagers are riskier to insure than females. In fact, the fatality rate for male drivers between 16 and 19 years old is roughly two times higher than the fatality rate of female drivers of the same age. Though this is generally accepted as the rule, it can vary from state to state. 

As such, parents or guardians of male teens will often find that their premiums will go up an extra 30% on top of the 130% uptick already anticipated. 

The good news? There are ways that you may be able to negotiate a discount and put some of that cash back in your pocket. 

How to Save on Teen Auto Insurance

Looking for affordable auto insurance quotes for your whole family? Here are a few ways to save when it's time to add your teen to the policy.

Shop Around

Especially if you aren't 100% satisfied with your current insurance company, this might be a great time to consider making a switch. Call around to several auto insurance companies to find the most competitive rate.

If you do like your company, then you can usually request a discount at one of two times:

  • At the beginning of each year
  • When it's time to renew your policy

Ask if there are any new promotions available and how you can take advantage of them. Cheap auto insurance could be closer than you think. 

Inquire About Discounts

Sometimes, the simplest solution is the best. Ask your insurance agent if there are any discounts or promotions that you can leverage to keep your costs low.

There may be opportunities that you don't know about, and it never hurts to check! To get you started, we've put together this helpful list of possible discounts that may apply to your case. 

Save With Safe Driving Habits

Many insurance companies will offer discounts for teens who agree to join their driver monitoring programs. In addition to programs designed for new drivers, there are also those that track specific driving behaviors, such as speeding. 

If your teenager meets certain checkpoints while driving, then the reward is often reflected in your monthly rate. You may also receive a discount for participating. 

The Lowest Insurance Rates for Your Young Driver

As you start to shop around for the best policies to protect your teenager, you'll soon find that the research is complicated.

Between the calculations and comparisons, it's easy to lose track of which policy is best. We're here to make the process easier, and answer the question, "how much is car insurance for a 16-year-old?"

On our website, you can apply for quotes from multiple insurance carriers, allowing you to quickly and easily compare pricing and choose the best plan for your family. 

The best part? You can do it in just a few clicks. Enter your zip code and let's get started today!