What is the cheapest insurance for a 16 year old? When looking for the cheapest car to insure a teen, there are several factors to consider as well as the type of vehicle. Auto insurance companies take on a greater risk by insuring teens because young and inexperienced drivers are more likely to have an accident.
As a result, teen auto insurance is more expensive, but you can still save by shopping around. Here in this guide what is the cheapest insurance for a 16 year old? We’ve found that Safeco, Erie, American family, or GEICO are, on average, the cheapest options for families looking to add a teen to auto insurance, but some of these factors include the teen’s age, location, and gender.
Table of Contents
What Is The Cheapest Insurance For A 16 Year Old?
What Is The Cheapest Insurance For A 16 Year Old? Here are the 10 cheapest cars for teens, including average annual auto insurance costs:
- $2740: Volkswagen Golf GTI
- $2766: Mini Countryman
- $2769: Volkswagen Routan
- $2640: Mazda MX-5 Miata
- $2,792: Subaru Legacy
- $2807: Mini Paceman
- $2735: Subaru Outback
- $2776: Smart Fortwo
- $2786: Fiat 500L 19
- $2788: Honda Odyssey
These breakdowns are from Value Penguin and are based on the 2021 models.
What Are The Average Rates Of Youth Insurance?
CarInsurance.com states that the national average for a 17-year-old’s auto insurance is $5,925. That number is 237 percent higher than what adults over 30 pay.
While the cost of teen auto insurance varies by state, NerdWallet has listed the average annual cost of full and minimum coverage by age:
- Minimum coverage is $2733 and full coverage is $6613 for a 16-year-old.
- Minimum coverage is $2206 and full coverage is $5373 for 17-year-old drivers
- Minimum coverage is $1938 and full coverage is $4837 for 18-year-old drivers
- Minimum coverage is $1541 and full coverage is $3716 for 19-year-old drivers
Drivers aged 16 and over are the most expensive to insure because they have the least experience.
Which States Are The Cheapest And Most Expensive?
As mentioned, the price of youth auto insurance varies by state. The cheapest state for minimum and full annual coverage for 16-year-old drivers in Hawaii, because the state doesn’t factor in an age when determining auto insurance costs.
Aside from Hawaii, North Carolina has one of the lowest average rates for a full-coverage annual policy. Those who are 17 years old will have to pay just under $2660. In Iowa, the cheapest minimum insurance rate averages about $930 per year.
Compare this price with rates in Louisiana, the most expensive annual policy with full coverage for 16-year-old drivers. Expect to pay over $11,500 for a full-coverage annual policy.
A 17-year-old driver won’t pay as much as a 16-year-old, but auto insurance costs are still expensive. A 17-year-old driver would pay approximately $5370 annually for full coverage and $2206 annually for minimum coverage.
These 17-year-old drivers pay the most in Louisiana, as comprehensive insurance rates are $9,255 annually. Michigan is the most expensive with a minimum coverage of just under $4070 per year.
An 18-year-old driver pays an average of just over $4,830 per year for full coverage, and the average minimum annual insurance rate is $1,940.
Aside from Hawaii, North Carolina has one of the cheapest average annual full insurance rates at $2,398, while Iowa is the cheapest at minimum insurance of about $812 per year.
19-year-olds are the cheapest to insure because they usually hold a driver’s license for longer and spend more time behind the wheel. For them, the average price for comprehensive insurance is about $3717 per year, while a minimum fee averages $1451 per year.
Aside from Hawaii, North Carolina is the cheapest for drivers of this age. The average annual policy with full coverage is $1490 and with minimum coverage, the rate is $550. The most expensive for full coverage is in Louisiana at $6240 per year. Michigan tops the list for a minimum insurance policy of $2,890 per year.
Does Gender Play a Role in Teen Auto Insurance Costs?
When asking this question what is the cheapest insurance for a 16 year old? You also need to be concerned about the role gender play in teen auto insurance.
While auto insurance is expensive for teenage women compared to women in their twenties, teens generally have high insurance premiums, even if they have impeccable driving. One of the reasons is that they have no experience and that auto insurers can’t set their rates because they don’t have driving data.
When companies cannot rely on data to estimate the likelihood of reporting a claim, they use statistics to determine overall risks and set prices.
According to the Insurance Institute for Highway Safety (IIHS), teenage boys are more likely to cause accidents than other groups. The IIHS also states that teens aged 16 to 19 are responsible for nearly three times as many fatal accidents as adults aged 20 and older.
Ways to Lower Insurance For Teens
Typically, auto insurance rates are higher for teens, allowing companies to cover the larger losses teens are more likely to incur. According to the Centers for Disease Control and Prevention, car accidents are the second leading cause of death for teens, with nearly 2,500 teens killed in car accidents in 2018.
However, teens can take several steps to lower their auto insurance rates:
Take a defensive driving course. The insurance company may give your teen a discount for taking the class. Check with the company first as you may need to use specific carriers. Many courses can be taken online.
· Get Good Grades
Most insurance companies reward drivers under 25 if they have a B average in high school or a GPA of at least 3.0 in college.
· Drive a sensible vehicle
Teens who drive sports cars pay more for insurance than those who drive newer sedans. Another possibility is that the teen is a driver and only has liability insurance. Older, more run-down vehicles don’t need collision damage waiver or collision insurance because you’ll likely spend more on insurance for the year than the vehicle is worth.
· Go longer between moving violation tickets and incidents
It makes sense that the longer you go without damage or accident, the cheaper the insurance becomes. Keep your teen safe and avoid small claims.
· View discounts
For example, young people who study on campus instead of close to home may qualify for a discount.
Car Insurance Companies That Offer Discounts For Teenagers
Searching for what is the cheapest insurance for a 16 year old? Many auto insurance companies offer discounts specifically tailored for teenage drivers. Think of things like good student discounts and distance learning. Here are some specific examples worth mentioning:
1. GEICO
Students with at least a B average, or who have passed the Dean’s List or equivalent awards, can take advantage of a discount of up to 15%.
2. Safeco
For those who have had a policy with the company for at least a year, there is a new teen premium discount that can save up to 27% when a teen is added to a policy.
3. American family
This company offers young volunteers the opportunity to get a discount on their car insurance. You must be under 25 and volunteer at least 40 hours per year to be eligible.
4. Progressive
Those who turn 18 and have an existing policy can get an average of 10% discount on fares, and another 16% by age 21. The Snapshot program can also help young drivers save.
5. Erie
If you have been with the company for a minimum of three years (although in some cases this is waived), the company will forgive the first self-inflicted accident. Erie Insurance offers a rate lock that freezes your rates year after year unless you change the policy by adding another car or driver.
What Is The Cheapest Insurance For A 16-Years Old?
We’ve found that Safeco, Allstate, American Family, or GEICO are, on average, the cheapest options for families looking to add a teen to auto insurance, but some of these factors include the teen’s age, location, and gender. See how to get cheaper car insurance for teens and more advice for parents below:
How to Get Cheaper Car Insurance For Teens?
There are other ways to get affordable teen auto insurance and lower your rates. For example:
· Limit your driving distances
Some companies offer discounts to drivers who drive a relatively small amount per year. Limiting daylight driving can also help reduce the chance of a car accident, which would increase costs.
· Save the car title on your behalf
In some cases, putting your child’s name on the title means they have to get their own insurance, which is usually more expensive.
· Ask your insurance agent to assign the cheapest car to your teen.
Some companies may automatically assign the most expensive driver (usually a teenager) to the most expensive vehicle, which can further drive up costs. So it is always worth specifying which car should be assigned to you.
· Have your teen take a driving course
Some companies offer discounts for those who take courses such as driver training.
The cost of insuring a teenage driver varies widely depending on factors such as what they drive, how well they drive, and where they live. Fortunately, there are plenty of discounts that reward teens for being good drivers, good citizens, and getting good grades. It is important to request multiple quotes so that you can compare policies and keep your costs low.
What is the Average Cost of Teen Auto Insurance?
It depends on how you look at it. For example, you may want to consider the cost of an individual teen driver policy – this is usually the more expensive option. Or you can consider the cost of adding this driver to a family policy. Here are the averages for these two segments:
- The Average Cost of an Individual Teen Policy: $4,866
- The Average Cost of Adding a Teen to a Family Policy: $3,048
Please note: the above figures are calculated based on an 18-year-old driver. The average cost of adding auto insurance for a 16-year-old or older teen to a parent’s policy includes only the teen driver’s coverage costs. It does not represent the combined costs.
Conclusion – What Is The Cheapest Insurance For A 16 Year Old
Here in this guide on What Is The Cheapest Insurance For A 16 Year Old? we have helped you with the neccesary information you will be needing to insure a car for your teen.
When looking for the cheapest car to insure for your teen, remember that there are other ways to save money on auto insurance. By doing a little research, contacting your insurance company directly, and getting your teen to practice safe driving habits, your teen’s insurance premiums can drop dramatically.