Best Car Insurance for 16-Years-Olds: Cheap Companies (2022)

Best Car Insurance for 16-Years-Olds: Cheap Companies (2022)

The best car insurance for 16-year-olds can be as little as $284 per month on average for full individual insurance policies. However, prices from major providers can exceed $1000 per month. Becoming a licensed driver at the age of 16 opens you up to a whole new world of possibilities and freedom, but it is also costly.

The Home Media Reviews team has looked at dozens of provider pricing for 16 year olds, and recommends comparing quotes from providers to find Cheapest car insurance for your condition.

Cheapest car insurance for 16 year olds

The average car insurance cost for a 16-year-old under their full coverage policy is $6,912 per year or $576 per month. However, some companies are better options than others for cheap car insurance.

According to our estimates, Erie Insurance is the cheapest regional insurance company for 16-year-olds. Offers average rates $284 per month or 3,410 dollars a year For 16-year-olds with individual insurance policies. State Farm is the cheapest national provider, with an average Monthly rates $345 and average Annual rates of $4,146.

Below, you can find out the cost-effectiveness rating of 11 popular auto insurance companies.

* Auto insurance estimates are based on full coverage policies with bodily injury of $50,000 per person, $100,000 bodily injury per accident, $50,000 of property damage per accident and $500 deductible for collision and comprehensive coverage.

Best car insurance for 16 year olds

Our top five picks for the best car insurance for 16-year-olds offer below-average rates, plus discounts that apply to teens and families.

*The overall rating applies to the Standard Driving Profile, while the rating rating applies to drivers aged 16 and over.

No. 1: State Farm

If you are looking for the best auto insurance for 16 year olds, it is a good idea to get a quote from State Farm. This provider not only offers low average rates for 16-year-olds, but also offers great programs to save more money.

Drive state farm safe and saveTM The app tracks your driving habits and can give you discounts of up to 30%. In addition, drivers under the age of 25 can participate in Steer Clear® The training program that offers rewards and discounts upon completion.

Read more in our full State Farm insurance review.

#2 Erie Insurance

According to our estimates, Erie Insurance is the cheapest car insurance for 16-year-olds. However, it is only available in 12 states and Washington, DC. If you’re in one of the following places, get a quote from Erie when you shop:

#3 Gekko

Geico is another affordable company for 16 year olds. Pricing estimates from Geico are $372 per month on average, which is about 35% cheaper than the industry average of $576 per month. Geico also has useful discounts for young drivers who have earned good grades or have completed a driver education course.

Learn more in our Geico insurance review.

#4 Nationwide

Nationwide auto insurance rates for 16-year-olds are about 34% cheaper than the national average for this age group. Smart Ride Nationwide® The program gives discounts based on driving habits, while its SmartMiles program gives away® The program sets your price based on miles. The company also offers discounts for good students and accident-free drivers.

Learn more at Nationwide Insurance Review.

#5 USA

USAA offers average rates about 31% cheaper than the national average for 16-year-olds and has a good reputation for customer service. USAA is only available to military personnel and their immediate families. Teens can join a family policy or qualify on their own if their parents are already USAA members.

Learn more in our USAA Insurance Review.

Why is car insurance so expensive for a 16 year old?

Car insurance companies set rates for customers based on the risk of a driver making a claim. Sixteen-year-olds do not have much driving experience and are more prone to accidents. Car insurance companies charge higher rates to offset this risk.

According to the AAA Traffic Safety Foundation, in 2015, children aged 16 to 17 participated in Almost double the number of accidents 18-19 year olds In the US also, 16-17 year olds had more than four times as many accidents as drivers in the 30-39, 40-49, and 50-59 age groups. Below are the details of the institution’s study.

The average cost of full coverage insurance is closely related to the breakdown rate by age. Below, you can see that 16-year-olds pay about four times as much as 45-year-old drivers on average.

How to reduce car insurance costs

With rates of young drivers on the rise, you can do anything to lower it Car insurance costs helps. Here are five tips to keep in mind.

Add your 16-year-old to family insurance

The best way to save Teen driver insurance It is added to a parent’s policy. You can save hundreds of dollars annually doing this. You’ll still pay higher premiums overall, but it won’t be as expensive as having a 16-year-old on their insurance policy.

Reduce your coverage amounts

If you are comfortable, you can lower your coverage amounts to save money on car insurance. You can even fall down collision insurance And the full insurance And go with the minimum liability coverage required in your state.

Make sure you can afford to have your car repaired if you or your teen gets damaged or if someone who doesn’t have enough insurance causes an accident, because you won’t be covered in these situations. And if the car is financed, the lender will likely require you to get full coverage insurance.

Shop for the best car insurance discounts for 16-year-olds

Here are a few Car Insurance Discounts To search for when adding a 16-year-old to an existing policy or starting an individual policy:

  • Good student discount: Students can save money on their auto insurance policies by maintaining good grades – usually at least a B average.
  • A student away at schoolFamilies with students who don’t drive to college can get policy discounts. This usually requires the student to go to school at least 100 miles from home.
  • Discount on driver education: Some companies offer discounts to students who complete driver training courses. This can vary by state.
  • Discount based on usage: Programs like Progressive Snapshot® and State Farm’s Drive Safe & SaveTM Giving discounts based on good driving habits. Teens who drive safely and don’t put many miles on their cars may save money through these programs.
  • Multi-car discountFamilies with teens who drive their own cars can save a lot with this discount.

While it’s not a discount, keep in mind the accident tolerance policy. A single car accident can raise rates by thousands of dollars a year for a teen. Some companies offer this add-on to keep the cost of car insurance the same after a faulty accident.

Choose the right car

The type of vehicle a 16-year-old driver has can affect their prices. In general, car insurance rates are higher for luxury cars and sports cars. To save money, choose a reliable and affordable car with good safety ratings.

Watch your driving habits

Even a small offense like speeding can increase the cost of car insurance for teens, so the best thing they can do is keep clean driving records. Many service providers offer safe driver discounts for those who do.

10 countries cheaper for 16 year olds

You might not just move on to saving on auto insurance, but it’s good to know where to find the best rates for 16-year-olds. Here are the 10 cheapest states for comprehensive car insurance for 16-year-olds.

* Age has no direct effect on car insurance rates in Hawaii.

10 most expensive countries for 16-year-olds

There are some states where full coverage auto insurance policies for 16-year-olds have astronomical rates. Michigan, Connecticut and Louisiana top the list.

Cheapest car insurance for 16-year-olds in every country

In our analysis, we compared the top 10 providers in each state by age and found which are the cheapest for 16-year-olds. Depending on where you live, you may want to consider getting a quote from one of the companies below.

Shop for the best car insurance for 16 year olds

Each car insurer assesses risk differently, so you’ll find different rates from different providers. We recommend comparing at least three Car insurance rates when you shop.

our methodology

Because consumers rely on us to provide objective and accurate information, we’ve created a comprehensive rating system to craft our ratings for the best auto insurance companies. We have collected data from dozens of auto insurance providers to rank companies according to a wide range of rating factors. The end result was an overall rating for each provider, with the insurance companies that scored the most points at the top of the list.

Here are the factors our ratings take into account:

  • Cost (30% of total points)Estimates of auto insurance rates generated by Quad Information Services and discount opportunities have been taken into account.
  • Coverage (30% of the total score)Companies that offer a variety of options for insurance coverage are more likely to meet consumer needs.
  • Reputation (15% of all scores): Our research team considered market share, ratings from industry experts, and years in business when giving this result.
  • Availability (10% of the total score)Car insurance companies with the highest availability in the country and few eligibility requirements scored the highest in this category.
  • Customer Experience (15% of the total score): This score is based on the volume of complaints reported by NAIC and customer satisfaction ratings reported by JD Power. We have also taken into consideration the responsiveness, friendliness and assistance of each insurance company’s customer service team based on our shopper analysis.

* Accuracy of data at time of publication

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