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The cheapest car insurance for 16-year-olds can be found through Erie Insurance for an average of $284 per month or $3,410 per year.
Teenage Car Insurance Average Cost Per Month
Author: Daniel Robinson Author: Daniel Robinson Author Daniel is a staff writer for Guides and has written for numerous automotive news sites and marketing companies in the US, UK and Australia, specializing in automotive finance and automotive maintenance. Daniel car insurance, loans, warranty options, car services and more. is a member of our team of mentors.
How Car Make And Model Impact Auto Insurance
Editor: Rashawn Mitchener Editor: Rashawn Mitchener Managing Editor Rashawn Mitchener is a Guide staff editor with more than 10 years of experience covering personal finance and insurance topics.
Becoming a licensed driver at 16 opens up a world of opportunities and freedom, but it’s also expensive. As our team of guides, we’ve reviewed dozens of rates offered by providers for 16-year-olds and recommend comparing providers to find the cheapest car insurance for your situation.
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Our team of guides are committed to providing reliable information to help you make the best possible decision about your car insurance. Because consumers depend on us to provide objective and accurate information, we’ve created a comprehensive rating system to form our rankings of the best car insurance companies. We’ve collected data on dozens of auto insurance providers to rank companies on a wide range of rating factors. After 800 hours of research, the final result was a comprehensive ranking of each provider, with insurers scoring the most on the list.
How Much Is Car Insurance For An 18 Year Old?
The average cost of car insurance for a 16-year-old is $6,912 a year or $576 a month on their full coverage policy. That’s nearly four times the national average for middle-aged drivers, which is $1,730 a year.
Car insurance companies base their customer rates on the driver’s risk of filing a claim. Sixteen-year-olds have less driving experience and are more vulnerable to accidents. Car insurance companies charge higher rates to compensate for these risks.
According to the AAA Traffic Safety Foundation, in 2015, 16- to 17-year-olds were involved in nearly twice as many crashes as 18- to 19-year-olds. Also, 16-17-year-old youths who had more than 4 accidents as drivers in the age groups of 30-39, 40-49 and 50-59 participated. Below are the details of the organization’s investigation.
The cheapest car insurance for 16 year olds varies based on certain factors. Car insurance companies calculate premiums based on the driver’s age, location, driving history and credit score. Because teenagers have no driving experience or credit history, they may face higher rates than other age groups.
Top 15 Factors That Affect Car Insurance Rates
According to our calculations, Erie Insurance is the cheapest regional insurer for 16-year-olds. It offers an average price of $284 per month or $3,410 per year for 16-year-olds with individual policies. State Farm is the cheapest national provider, with average monthly prices of $345 and average annual prices of $4,146.
*Auto insurance estimates are based on full coverage policies with deductibles of $50,000 bodily injury per person, $100,000 bodily injury per accident, $50,000 property damage per accident, and $500 deductibles for collision and comprehensive coverage.
In our analysis, we compared the top 10 providers in each state by age and found which were the cheapest for 16-year-olds. Depending on where you live, you may want to consider getting a quote from one of the companies listed below.
You’re probably not just moving to save on your car insurance, but it’s a good idea 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.
Best Car Insurance For Teens
There are some states where single comprehensive coverage for 16-year-olds has astronomical rates. Michigan, Connecticut and Louisiana lead the list.
Our top five picks for the best car insurance for 16-year-olds offer below-average rates, as well as discounts that apply to teenagers and families.
If you’re looking for the best car insurance for 16-year-olds, it’s a good idea to get a quote from State Farm. This provider not only offers low average prices for 16-year-olds, but also offers great programs to save even more money.
The app tracks driving habits and can offer discounts of up to 30%. In addition, drivers under the age of 25 can participate in Steer Clear
Best Car Insurance For Teens & Young Drivers (2023)
According to our price estimates, Erie Insurance is the cheapest car insurance for 16-year-olds. However, it is only available in 12 states and Washington DC. Get an Erie offer when you shop if you’re in one of the following locations:
Geico is another good company for 16-year-olds. Price estimates from Geico average $372 per month, about 35% less than the industry average of $576 per month. Geico also has helpful discounts for young drivers with good grades or who have completed a driver’s license.
Nationwide car insurance rates for 16-year-olds are about 34% below the national average for this age group. SmartRide nationwide
The program sets your price based on mileage. The company also offers discounts for excellent students and accident-free drivers.
Tips To Reduce Teen Driver Insurance Rates
USAA offers average fares 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 themselves if their parents are already USAA members.
With rates on the rise for young drivers, anything you can do to lower car insurance costs helps. Here are five tips to keep in mind.
The best way to secure coverage for a teen driver is to add it to a parent’s policy. When you do this, you can save hundreds of dollars a year. You’ll still pay higher premiums overall, but they won’t be as expensive as having a 16-year-old’s policy.
If you are comfortable, you can reduce your insurance amount to save on car insurance. You can also opt out of collision and comprehensive insurance and stick to the minimum liability coverage required by your state.
How Much Is Car Insurance?
Make sure you can get your car repaired if you or your teen is injured or someone who doesn’t have adequate insurance causes an accident, because you won’t be covered in these situations. If the car is being financed, the lender will likely require you to have full insurance coverage.
Here are some car insurance discounts to look for when adding a 16-year-old child to an existing policy or starting an individual policy:
Although this is not a discount, you should consider an accident tolerance policy. A single car accident can raise rates for a teenager by thousands of dollars a year. Some companies offer this supplement to keep the cost of car insurance the same in the event of an accident.
The type of car a 16-year-old driver drives can affect their rates. In general, car insurance rates are higher for luxury cars and sports cars. Choose a reliable, affordable car with good safety ratings to save money.
Best Car Insurance For Young Drivers
Even minor infractions like speeding can increase the cost of car insurance for teenagers, so the best thing they can do is keep their driving record clean. Many providers offer safe driver discounts to those who do this.
In this article, we’ve provided the cheapest car insurance rates for 16-year-olds and broken down the costs by state. We’ve also identified average costs for your age group and some key factors that can affect your car insurance premiums.
Even with our recommendations for the best car insurance for 16-year-olds, we recommend comparing at least three car insurance quotes when shopping.
According to our research, Erie Insurance is the cheapest car insurance company for 16-year-olds, costing an average of $284 per month or $3,410 per year. Auto Owners Insurance, State Farm and Geico are also affordable options for drivers.
Tips And Ideas For Cutting Car Insurance Costs
Cheap car insurance for 16-year-olds in Arizona can be found with Geico for $3,222 a year.
Luxury and performance cars are usually the most expensive cars to insure for teenage drivers. We recommend choosing a car with good safety features and an affordable price.
Comprehensive coverage for a 16-year-old child costs an average of $576 per month. A 16-year-old who owns a Mustang will cost more than a car insurance policy.
New teen drivers can pay $3,000 to $6,000 or more annually for comprehensive auto insurance. Drivers can save money by setting their own insurance amounts and getting discounts. Costs depend on factors such as the insured’s vehicle, driving history and location.
Average Cost Of Car Insurance In September 2023
Because consumers depend on us to provide objective and accurate information, we’ve created a comprehensive rating system to form our rankings of the best car insurance companies. We’ve gathered data on dozens of auto insurance providers to rank companies on a wide range of rating factors. the