Cheap Auto Insurance for 16-Year-Olds in 2024 (Big Savings From These 10 Companies!)

When you’re looking for cheap car insurance for 16-year-olds, Geico, State Farm, and Nationwide are your three most affordable options.

At just $124 per month, Geico can offer cheap auto insurance for 16-year-olds because it has an excellent selection of discounts teens can take advantage of, including savings for taking a defensive driving course and maintaining good grades in high school.

Our Top 10 Company Picks: Cheapest Car Insurance for 16-Year-Old Drivers

Whether you’re a teen looking for coverage or a parent or guardian interested in adding a new driver to your policy, you can find our picks for the cheapest insurance for 16-year-olds below.

Enter your ZIP code into our free quote comparison tool above to get started on finding the most affordable rates for 16-year-old drivers.

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#1 – Geico: Best for Affordable Rates

Pros

• Affordable rates: Geico is usually one of the cheapest insurance providers, no matter where you live, making it easy for families to get affordable coverage.
• Teen driver discounts: Young drivers can save on their Geico insurance by completing a driver education or defensive driving course.
• Student discounts: High school students can lower their rates by 15% by maintaining a GPA of at least 3.0. See more discount options in our review of Geico auto insurance.
• DriveEasy: DriveEasy is Geico’s usage-based insurance (UBI) car insurance program that monitors driving behaviors. You can save up to 10% by consistently driving safely.

Cons

• Limited local agents: Geico is a great option for drivers who want a more modern online experience, but it lacks a large network of local agents. It’s harder to find personalized help from Geico, which can be important to young drivers unfamiliar with insurance.
• Mixed customer reviews: Although Geico gets excellent ratings from third-party companies like A.M. Best, many customers report being unsatisfied with their service.
• DriveEasy can increase rates: Most UBI programs don’t penalize drivers for bad habits, but DriveEasy might increase your rates if you don’t drive well enough.

#2 – State Farm: Best for Teen Discounts

Pros

• Steer Clear program: Steer Clear is an educational program meant to help young drivers improve their skills. You can save up to 15% by completing the program and staying accident-free. Learn more about the Steer Clear program in our State Farm insurance review.
• Teen discounts: Other ways for teens to save include discounts for being a good student, taking driver education classes, being a safe driver, and taking a defensive driving course.
• Drive Safe and Save: Save up to 30% on your insurance by enrolling in State Farm’s Drive Safe and Save UBI program.
• Extensive network of agents: State Farm has local agents all over the country, making it easy to find personalized help.

Cons

• Limited online options: It’s easy to get an online quote for car insurance, but you’ll need to buy your policy through a State Farm agent.
• Some coverage options lacking: Despite being one of the largest insurance providers in the country, State Farm lacks a few popular coverage options, such as gap insurance.

#3 – Nationwide: Best Vanishing Deductible Savings Program

Pros

• SmartRide: Save 10% on your insurance just by signing up for Nationwide’s UBI program SmartRide. Then, increase your savings by up to 40% by being a safe driver.
• Low rates for drivers with bad credit scores: Most insurance companies charge much higher rates for drivers with bad credit scores. However, Nationwide offers much more affordable rates.
• Vanishing Deductible: Sign up for Nationwide’s Vanishing Deductible program to lower your deductible by $100 every year you stay claims-free, up to $500.

Cons

• Average rates for minimum coverage: If you’re looking for the bare minimum coverage required in your state, you’ll likely find cheaper rates elsewhere. Explore Nationwide’s average rates in our Nationwide car insurance review.
• Limited local agents: Finding an agent in some locations can be difficult if you want face-to-face service.

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#4 – American Family: Best for Young Volunteers

Pros

• Teen Safe Driver program: American Family’s Teen Safe Driver program is a specialty usage-based insurance plan designed specifically for young drivers. You can earn a discount by driving safely and get tips on how to improve your skills.
• Student discounts: Teens can save with American Family discounts for things like being low-mileage drivers, maintaining their grades, taking a defensive driving course, and volunteering for at least 40 hours per year.
• KnowYourDrive: If the Teen Safe Driver program isn’t available, you can enroll in the regular UBI program KnowYourDrive, which offers a maximum savings of 20%.
• Writes Costco policies: 16-year-olds belonging to a household with a Costco membership can save by purchasing Costco auto insurance, which is underwritten by American Family through CONNECT. Learn more in our Costco auto insurance review.

Cons

• Limited availability: American Family is only available in 19 states, but it sells Costco policies through CONNECT in 44. See our American Family auto insurance review to which states American Family sells in.
• Higher rates: While American Family isn’t the most expensive option on the market, it’s usually higher than the national average. It has affordable rates for 16-year-olds, but a parent or guardian might find cheaper coverage elsewhere.

#5 – National General: Best for High-Risk Drivers

Pros

• Focus on high-risk drivers: National General offers affordable coverage to drivers other companies might refuse, including young and inexperienced drivers.
• Flexible payment options: National General makes it easy to budget for your insurance by offering flexible payment options. Explore your payment options in our National General auto insurance review.
• Specialized coverage for uncommon situations: While some 16-year-olds might find it difficult to find coverage – especially if they need their own policy – National General offers a variety of solutions.
• Streamlined online quotes: You can get almost immediate coverage from National General by purchasing your policy online.

Cons

• Limited customer service: According to the National Association of Insurance Commissioners (NAIC), National General receives more than six times as many complaints as similar companies. A common complaint from customers is that claims are frequently denied.
• Lacking coverage options: As a company that specializes in high-risk auto insurance, National General lacks the coverage options you can find at other companies.
• Limited discounts: National General doesn’t offer as many discounts as its competitors. However, 16-year-olds can take advantage of its good student discount.

#6 – Allstate: Best Telematics Savings

Pros

• Drivewise: Save up to 40% on your insurance by enrolling in Allstate’s UBI program Drivewise and practicing safe driving habits. See if Drivewise can help you save in our review of Allstate auto insurance.
• Excellent selection of add-ons: Drivers looking for the cheapest coverage will find it with a minimum insurance policy. However, Allstate offers plenty of coverage options if you have room for more insurance in your budget.
• Young driver discounts: Allstate offers several discounts for young drivers, especially for teens doing well in school. You can also earn discounts by doing things like signing up for paperless documents.

Cons

• Higher rates: Generally speaking, Allstate tends to be one of the most expensive options for car insurance for all drivers.
• Struggles with reviews: Despite having loyal policyholders, many Allstate customers report being unsatisfied with the service they receive from customer service representatives.

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#7 – Farmers: Best for Teens Joining a Family Policy

Pros

• Driver education discounts: Farmers offers common teen discounts like being a good student and taking a defensive driving course.
• Signal app: The Signal app helps safe drivers save up to 30%. To enroll, start by downloading the Singal app.
• Teen savings: Farmers has 23 discounts available to help drivers save, including special savings just for being a young driver. Families can save more by adding a young driver to their policy, as long as there are more drivers than cars on the plan. Find more discount details in our review of Farmers auto insurance.

Cons

• Limited online options: Compared to other providers, Farmers offers fewer options to manage your policy online.
• No policies in Florida: Famers recently announced that it would no longer sell new car insurance policies in Florida.

#8 – Liberty Mutual: Best for Diverse Coverage Options

Pros

• TeenSMART discount: TeenSMART is a driving education program that helps teens learn how to avoid accidents and stay safe on the road. Teens who complete this program may be eligible for a discount from Liberty Mutual.
• Teen discounts: Liberty Mutual offers a good student discount for teens. There are also plenty of other ways to save, like being a good driver or signing up for automatic payments.
• RightTrack: Liberty Mutual offers an initial discount for enrolling in its UBI program RightTrack. Safe drivers can save up to 30% on their policy.
• Diverse coverage options: If you’ve got room in your budget for more coverage, Liberty Mutual offers diverse options like roadside assistance, original parts replacement insurance, and accident forgiveness.

Cons

• Less competitive rates: While Liberty Mutual isn’t the most expensive insurance provider, it usually doesn’t offer the cheapest rates, either.
• Low claims satisfaction: Many Liberty Mutual customer reviews state being unsatisfied with how long the claims process takes and with the resolution. See what customers have to say in our Liberty Mutual auto insurance review.

#9 – Progressive: Best for Teens on a Budget

Pros

• Snapshot: Sign up for Progressive’s Snapshot program to earn savings for your good driving. The average driver saves $156 per year with Snapshot.
• Name Your Price tool: Progressive makes it easy to stick to a budget with the Name Your Price tool. Simply enter how much you want to pay per month, and Progressive will give you a list of coverage options to match.
• Affordable rates: No matter who gets a quote, Progressive tends to be one of the most affordable options on the market. While it doesn’t have the lowest rates for teens, Progressive prices drop quickly once you reach your 20s. Explore our Progressive auto insurance review to see more rate information.
• Excellent discounts: Progressive offers 13 discounts to help you save, including a teen driver discount just for adding a young person under 18 to your policy.

Cons

• Limited local agents: With a focus on online policy buying and management, Progressive lacks the network of local agents some of its competitors have.
• Rates can be high: Progressive is usually one of the cheapest options for insurance, but drivers with an at-fault accident on their record will likely see higher rates.

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#10 – Travelers: Best for Low-Mileage Drivers

Pros

• Teen driver discounts: Travelers offers a few discounts made for teen drivers among its 13 savings options.
• IntelliDrive: If you drive fewer than 13,000 miles per year, you probably qualify for Travelers’ IntelliDrive program. Safe drivers can save up to 30% on their policy with IntelliDrive.
• Unique coverage options: Travelers offers a variety of coverage options, including identity protection, rideshare, and gap insurance. See more coverage options in our Travelers car insurance review.

Cons

• Mixed customer reviews: Despite having excellent coverage options and discount availability, Travelers struggles with its customer loyalty and claims satisfaction ratings.
• Above average rates: Most drivers can find cheaper coverage with other companies as Travelers rates are typically a bit above average.

Auto Insurance for a 16-Year-Old Driver

It’s natural for parents to worry that they won’t afford auto insurance when their teen finally does get their license.

Since auto insurance companies consider teenagers to be a different driver type than the average driver, teenage auto insurance costs are higher on average.

Fortunately, there is affordable auto insurance for 16-year-olds available if you know what to look for.

While it’s true that auto insurance for a 16-year-old female driver, for example, will be a little more expensive than insurance for their parents, it’s still manageable under most circumstances, though different factors will affect those rates.

Keep reading to learn more about auto insurance for 16-year-old males and females.

Average Insurance Cost for 16-Year-Old Drivers

This table summarizes how much you may pay when adding a teen driver to your insurance policy.

Auto Insurance Monthly Rate Increases: Adding a Teen to Your Policy

As you can see, the average cost of adding a 16-year-old driver to your auto insurance policy can vary dramatically by state, but in nearly every case, rates more than double when adding a teen driver.

Read on to learn more about why auto insurance is so expensive for teen drivers, the difference in rates based on gender, and more.

16-Year-Old Insurance Rates by Gender

Like older adults, 16-year-olds see different rates based on their gender. This is primarily because boys at this age are statistically more likely to get into accidents and drive recklessly. Check below for the average car insurance cost for 16-year-old females.

16-Year-Old Female Minimum Coverage Monthly Auto Insurance Rates

If you’re looking to buy a policy for a boy, you can explore average rates for car insurance for 16-year-old males below.

16-Year-Old Male Minimum Coverage Monthly Auto Insurance Rates

As you can see, there is a significant price difference in car insurance for 16-year-old females compared to males. While men typically pay more for their insurance than women, the price gap lessens with age.

Insurance Costs for Adding a 16-Year-Old to a Family Policy

In order to get the lowest auto insurance rates for your teenager, it’s best to keep them on your policy as long as possible (though this will, of course, increase your rates).

For example, 16-year-old boys can see up to a 50% reduction in rates just by being insured under their parents’ insurance policy rather than on their own. Take a look at this table to see average savings by state.

Auto Insurance Savings by State for 16-Year-Olds: Individual vs. Family Plan

As you can see, when you factor in average rates for both male and female 16-year-old drivers, the savings are even greater on a family insurance plan.

In most states, you can keep your children on a family insurance plan through age 21, provided they are in college and still count your home as their primary residence. A few states are more generous, allowing parents to keep kids on their policy until age 26. If you’re unsure about your future college student, an insurance representative will know the details for auto insurance for children away at college.

Factors that Affect Auto Insurance Rates for Teenagers

Many different factors affect auto insurance rates, and age is a big one. Age is such an important factor in your car insurance rates that it’s one of the first things a company asks for when crafting a quote.

However, your ZIP code is still the first thing a company will ask for. Keep reading to learn how age and vehicle will affect auto insurance rates and how to save on car insurance for a 16-year-old. 

How Age Affects Insurance Rates

There are many reasons why auto insurance costs more for young drivers compared to older adults.

The first and most obvious is the fact that teenagers simply lack experience behind the wheel. Where their parents have logged many hours of driving, a 16-year-old will usually have driven fewer than 100 hours by the time they take their road test.

100 hours seems like a long time for some activities, but for driving, it’s not even a drop in the bucket.

Another reason for higher car insurance rates among teenagers is the assumption that they are more careless behind the wheel.

Whether or not you believe this is a justified stereotype, the Center for Disease Control (CDC) reports that in 2017, an average of six teenagers (between 16 and 19) died as a result of motor vehicle crashes every day.

When looking at all motor vehicle accidents (both those that resulted in fatalities and those that did not), drivers between the ages of 15 and 19 accounted for about 8% of the total cost of injuries resulting from an accident.

However, these teen drivers only represent about 6.5% of the population in the U.S., thus proving they are more dangerous drivers than the general population.

Government statistics consistently show that of all car accidents on U.S. highways each year, over two-thirds are caused by teen drivers.

Such a high number clearly indicates that teenage drivers are riskier to cover.

How Your Car Affects 16-Year-Old Auto Insurance Rates

Twenty years ago this question may have been irrelevant because most teenagers drove their parents’ cars.

In today’s culture, though, it’s becoming more and more common for parents to buy their children separate cars so the kids aren’t tying up theirs.

Keep in mind that the make and model of your child’s car impact car insurance rates.

If you buy your 16-year-old a brand-new sports car, you’ll probably be paying significantly more in insurance than you would on a 20-year-old family sedan or similar vehicle.

Along with the car’s actual value, you also need to consider the safety record. For example, vehicles with off-road capability are automatically considered more dangerous.

Putting your teenage driver behind the wheel of one of these vehicles is a virtual guarantee you’ll pay more for auto insurance than you really need to. If you’re buying your child a vehicle, try looking for the safest ones on the market.

Finally, consider the value of your own vehicles if you plan on your teenager driving one of them. You and your spouse will be the primary drivers of your respective vehicles, but when adding your teen to the policy, you should assign them to the one with the least value.

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Teen Auto Insurance After an Accident

If you have a car accident, traffic violation, or other problem while driving, your parents’ insurance will go up, which is why some insurance companies recommend that parents keep their children on their insurance until they are 21.

There is a motivation among teens to watch their driving habits more if their parents are going to be immediately notified about it via their insurance.

Ways to Save on Auto Insurance for 16-Year-Olds

Just like with an adult’s auto insurance policy, there are multiple ways to save on auto insurance for a 16-year-old. Keep reading to learn some tips on saving money on auto insurance.

Auto Insurance Discounts for 16-Year-Olds

One way to find low-cost auto insurance for 16-year-old drivers is with discounts. We’ve summarized a few of the available auto insurance discounts your teen may qualify for in this table. Take a look.

Auto Insurance Discounts for Young Drivers

As you can see, most of the major companies offer some kind of discount for teen drivers, which can help you manage costs when you add a teen driver to your policy.

More Ways to Save on Auto Insurance for 16-Year-Olds

In addition to discounts, there are plenty of ways to find the best car insurance for teens and young drivers. Some of them are:

• Keeping the teen’s driving record clean with no tickets or accidents.
• Not filing a claim unless you need to — paying for damages from an accident out of pocket helps keep insurance rates low
• Buying a car that is cheaper to insure
• Meeting only the car insurance requirements in your state
• Keeping your deductibles high, which in turn lowers your rates

When your teen begins the process of getting a driver’s license, start looking around for auto insurance. Each company will charge a different rate, so compare auto insurance quotes from multiple companies to get the best deal.

How to Be Legal While Driving

Once you discover that you are indeed on your parents’ insurance, you will just need to follow these steps to be legal on the road:

• Maintain coverage: Driving without insurance can get you into serious trouble, even if you only do it once. To avoid serious consequences like losing your license and needing SR-22 insurance, make sure you only drive when you’re covered.
• Get a copy of your insurance card: Even if you are fully covered by your parent’s insurance, you will still need a copy of your coverage to carry with you at all times. You also have a responsibility to make sure your parents’ coverage meets the mandatory requirements of your state.
• Make sure the car insurance company has your information: Some teens who are covered by their parent’s insurance do not yet own their vehicle. But if you already have a car, you will need to make sure your car’s make and model are indicated on your insurance that you have through your parents.
• Insurance follows the car: You will only have the amount of coverage that your parent has on the vehicle you are driving.  Some additional coverage you might want could include comprehensive auto insurance coverage.
• Keep a clean driving record: One of the biggest mistakes young drivers make is that they get through their driver’s test fine but then mess up their driving record too soon by distracted/reckless driving When you get your own insurance, these bad behaviors will come back to haunt you.

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Best Advice for 16-Year-Old Drivers

The best advice for a new driver is to keep your eyes on the road, avoid distractions, and think about the future. The future may involve a lot of things, such as who your friends will be, where you will go to college, and your future job or career.

But the most important thing is that you drive safely so that you will live to see that future and avoid legal problems.

Driving safely and defensively also protects you from exorbitant premium rates later when you get your car and insurance. Think of this time as a time to test drive your responsibility on the road.

But remember, it’s not a game.

Find Cheap Auto Insurance for 16-Year-Olds Today

Once your teen is licensed, they will need insurance in order to drive any vehicle you already own or choose to purchase for them.

Rates for 16-year-old drivers can be quite expensive, though shopping for the best rates and finding available discounts (good student discounts, for example) are two ways to manage the high costs.

If your teen driver is a 16-year-old boy, you’ll find that the insurance rates you’ll pay will be an average of 17% higher than rates for 16-year-old girls.

Another way to save is to add your teen to your family auto insurance policy, rather than to insure them separately. This can save 50% or more on rates.

Are you ready to buy auto insurance for a 16-year-old? For the best auto insurance for 16-year-olds, compare auto insurance quotes for a 16-year-old right now by entering your ZIP code in our free tool.

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