Car insurance for a 16-year-old in the United States typically costs between $300 and $750 per month, depending on factors like location, driving history, and whether the teen is added to a parent’s policy or has their own. Teens are considered high-risk drivers due to limited experience, which leads to higher premiums. Most families save money by adding the teen to an existing policy and applying for discounts such as good student, safe driver, or multi-policy bundling. Choosing a safe, low-cost vehicle and comparing quotes from multiple providers can also help lower monthly insurance costs.
Average Monthly Cost of Car Insurance for a 16-Year-Old
The national average monthly cost for a 16-year-old driver in the United States is between 300 to 750 dollars depending on the state, type of coverage, and whether the teen has their own policy or is added to a parent’s policy.
Quick Breakdown:
| Type of Policy | Average Monthly Premium |
| Teen on Own Policy | $450 to $750 |
| Teen on Parent’s Policy | $300 to $500 |
These are estimates and may vary based on location, gender, car type, and driving record.
Why Is Insurance So Expensive for 16-Year-Olds?
Car insurance companies base their prices on risk. Teen drivers are seen as high-risk for several reasons:
- Lack of experience behind the wheel
- Higher accident rates among young drivers
- More claims filed compared to adult drivers
- Tendency to speed or drive distracted
According to the Insurance Institute for Highway Safety, drivers aged 16 to 19 are nearly three times more likely to be in a fatal crash than drivers aged 20 and older.
Because of this risk, insurers charge more to protect themselves from future claims.
Factors That Affect Insurance Cost for 16-Year-Olds
1. Gender
In many states, boys pay more than girls because they are statistically more likely to get into accidents.
| Gender | Average Monthly Rate |
| Male | $450 to $750 |
| Female | $400 to $650 |
2. Location
Where you live affects your rate. Urban areas with more traffic and accidents tend to cost more.
3. Driving Record
Even one ticket or small accident can raise a teen’s premium.
4. Vehicle Type
Driving a sports car or luxury car will cost more than a basic sedan or used compact car.
5. Type of Coverage
Full coverage (liability, collision, and comprehensive) costs more than liability-only insurance.
6. Credit Score
Some states allow insurance companies to use your credit history. Since most 16-year-olds do not have a credit record, this factor may not apply or may increase the cost.
Should a 16-Year-Old Get Their Own Policy or Stay on a Parent’s Policy?
Staying on a Parent’s Policy
Pros:
- Much cheaper
- May qualify for discounts (multi-driver, multi-car, good student)
- Easier to manage one bill
Cons:
- The teen’s accidents or claims may affect the parent’s rates
Getting Their Own Policy
Pros:
- Keeps risk separate from the parent’s policy
Cons:
- Extremely expensive
- Fewer discount options
Recommendation:
Most families save thousands per year by adding the teen to an existing policy.
What Coverage Do 16-Year-Old Drivers Need?
While every state requires liability insurance, many parents choose full coverage for peace of mind.
Recommended Coverages:
| Coverage Type | Reason to Have It |
| Liability | Required by law, covers others’ damage |
| Collision | Pays for your car in an accident |
| Comprehensive | Covers theft, fire, weather damage |
| Uninsured Motorist | Protects against drivers without coverage |
| Roadside Assistance | Helps in emergencies |
If your teen drives an old, low-value car, you might skip full coverage to save money. But if the car is new or financed, full coverage is smart.
How to Lower Car Insurance for a 16-Year-Old
There are several ways to reduce costs:
1. Good Student Discount
Many companies offer discounts for students who maintain a B average or higher.
2. Driver Education Courses
Completing an approved driving course can lower premiums.
3. Low-Mileage Discount
If your teen drives less than average, ask about low-mileage discounts.
4. Safe Driver Apps
Some insurers track driving habits using a mobile app. Safe driving can earn discounts.
5. Add to Parent’s Policy
This is usually the biggest way to save. Some families save up to 60 percent.
6. Choose a Safe Car
Pick a car with good safety ratings, low repair costs, and no performance upgrades.
Top Cars for 16-Year-Olds (Affordable Insurance)
| Make and Model | Reason It Costs Less to Insure |
| Honda Civic | High safety scores, easy repairs |
| Toyota Corolla | Affordable parts, strong reliability |
| Subaru Impreza | All-wheel drive, safe and sturdy |
| Mazda 3 | Compact, good crash test ratings |
| Ford Fusion | Midsize sedan, not performance-based |
Avoid sports cars, convertibles, or luxury vehicles with high value or fast engines.
State-by-State Cost Differences
Insurance costs for 16-year-olds vary widely by state:
| State | Average Monthly Rate |
| California | $500 to $700 |
| Texas | $480 to $650 |
| Florida | $550 to $750 |
| Ohio | $350 to $500 |
| New York | $600 to $800 |
| Illinois | $370 to $520 |
These are general ranges. Use a free quote tool like Alias Insurance to compare real rates based on your location.
Frequently Asked Questions
Yes, but it is usually very expensive. Most insurers require a parent or guardian to co-sign if the teen is under 18.
Yes. Liability-only coverage is the cheapest legal option but offers no protection for the teen’s car. It may be fine for older vehicles.
It varies by state, but Geico, State Farm, Nationwide, Progressive, and Allstate often offer competitive teen rates and discounts.
Rates usually drop around age 25, or after a few years of accident-free driving.
Final Thoughts
Car insurance for a 16-year-old can cost between 300 and 750 dollars per month, depending on location, coverage, and whether they are on their own policy. While the cost is high, there are many ways to reduce it — including discounts for good grades, safe driving, and adding the teen to a parent’s plan.
Being a young driver is exciting, but it comes with responsibility. Making the right insurance choice now can save you hundreds or even thousands of dollars.
If you want to compare quotes for your teen, Alias Insurance offers fast and free tools to find the most affordable and reliable policies across top providers in the United States.
