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How Much Is Car Insurance for a 16 Year Old | Is It Cheap

The insurance cost for a 16-year-old driver varies on various factors. The blog explores various factors affecting car insurance for 16-year-old. Let’s read on to know more!
how much is car insurance for a 16 year old
How Much Is Car Insurance for a 16 Year Old | Is It Cheap
As exciting as it is to get your license, getting car insurance for a 16-year-old is costly. Here's how you can get the best deal on car insurance.
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As exciting as it is to get your license, getting car insurance for a 16-year-old is costly. The massive impact on a family’s expenditure on insurance is a matter of worry for most parents. Since teen drivers are new on the roads, they do not have the benefit of showing experience for insurance companies to consider better rates and are considered risker to insure.

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How Much Does Car Insurance Cost For a 16-year-old?

Considering a new driver’s insurance policy, the average car insurance rate for a 16-year-old is over $7,000 a year for full coverage. The insurance rate is roughly 2-300% higher than the average cost of full insurance coverage for a driver with experience. 

The high price and concerns of an insurance company about insuring a 16-year-old are explained by some surveys that suggest the risk of car crashes is highest among teens aged 16 to 19 years than any age group. Some surveys also showed that teen drivers aged 16 to 19 are almost three times as likely to face a fatal crash than drivers aged 20 and above. 

The high insurance cost for 16-year-olds is a certainty, but there are some intelligent ways to cut this amount short while ensuring sufficient coverage for you. 

What Factors Affects Car Insurance Cost For a 16-year-old?

The insurance cost for a 16-year-old driver varies on various factors. These include if the teen is added to a parent’s policy, your state, the type of car you drive, and coverage limits.

Teenagers can get their insurance policies only if they are independent adults or have reached the age of maturity. However, adding a teen to a parent’s policy would be a comparatively better option than a separate policy. The cost of adding a teenage driver to any policy would still come up to hundreds of dollars.  

How to Cut Cost of Car Insurance For a 16-year-old? 

Despite the high costs for young drivers, there are ways you could trim your costs by enquiring with your insurance company about discounts and ensuring you get the best deals. One of the ways teen drivers could earn a discount is by showing an excellent academic record. A good student discount is given to teenage drivers with a 3.0 or ‘B’ average grade. By showing this, one could reduce their insurance coverage by getting a deal of 16%. 

The other way to try getting a drop in your insurance policy is by signing a contract with your parents that will also outline a set of rules to follow when driving, which will include restrictions on the number of driving hours and also setting a strict limit on the number of passengers you could drive with. You can avail a discount of 5% by following this method. 

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Shopping Better Makes the Kill

Including a teenage driver in a parent’s auto insurance policy will skyrocket your premiums. You might be the best driver; however, until you prove that with a few years of driving experience with accident-free driving, you can expect to pay more for insurance. 

To lessen the burden, one could invest more time shopping around and comparing to find the best auto insurance rates. You could also expect the rates to fall as the teen insurance holder’s experience on the road increase with as few blackmarks. Taking help from guides in finding insurance policies that tend to change for 17-year-olds, 18-year-olds, and 19-year-olds will also be a tremendous assistance. These guides will break down the coverage rates and allow you to compare and decide on the best policy.

New teenage drivers must ensure a clean driving record. Your little experience on the roads is all the information available to insurance companies before signing you for insurance coverage. If you come across as a high-risk driver with traffic violations or accidents, you will see an increase in insurance rates. 

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The Difference in Car Insurance Cost for 16-year-old Males and Females

Statistics show that male teenagers are riskier drivers and more likely to get tickets than female drivers. This factor, combined with the inexperience of new drivers, makes insurance policies for males much more expensive. While the average annual total full coverage premium for male drivers is $2,600, female drivers can get it for just over a couple thousand dollars. 

Should You Get Full Insurance Coverage?

No law mandates you to get full insurance coverage. However, if your car is leased or financed, the lender mandates you to have full coverage. This will also include one with comprehensive and collision insurance. State-required liability insurance is also a mandate to drive legally. This is to pay for the damage and injuries of other persons or property in case of an accident committed by you. Full insurance coverage will include this and other aspects, and it is wise to avail of one. 

Rules for a 16-year-old Driver 

Most states have laws that restrict where and when you can drive. These rules are called Graduated Driver License (GDL) laws and apply to drivers younger than 18. In addition, while a teenager can get car insurance, as a minor, a parent or guardian must co-sign the policy. A teen cannot buy or insure a car in most states to ensure the teen’s parents are financially responsible. 

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Conclusion

Powerful engines tempt younger drivers, but choosing a tamer engine will help show cautious driving to an insurance cover. Buy a car equipped with Electronic Stability Control (ESC). It helps in maintaining control of curves and slippery roads. Furthermore, it will be an added factor to help reduce the insurance rate. Lastly, comparing the various insurance options is the best way to get car insurance for a 16-year-old.

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Picture of Aniket Kulkarni

Aniket Kulkarni

A seasoned Product Manager specializing in car insurance content, Aniket has a passion for simplifying complex insurance concepts. His strategic approach to content development reflects years of experience in the product development industry, coupled with a commitment to providing accurate, reliable information.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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