If you are just starting to drive, be prepared to pay a steep premium for auto insurance. So, How much is car insurance for a 16-year-old?
For full coverage, the typical car insurance cost for a 16-year-old is $7,625 annually, or $635 per month. The average annual premium for a 40-year-old driver with full coverage is $1,682, which is almost $6,000 higher than this rate. Full coverage car insurance is a great choice especially choosing car insurances.
Teenagers between the ages of 16 and 19 have the highest crash risk of any age group. Teen drivers 16 to 19 are nearly three times more likely to be in a fatal collision per mile driven than are drivers 20 or older.
The cost of your new driver’s auto insurance is unquestionably high. However, there are still some clever ways to save money while making sure you have enough coverage. We’ll explain how.
Can a 16-year-old Get Their Own Car Insurance?
A 16-year-old can get their own car insurance policy, but it’s usually easier and cheaper to add them to your policy once they’re licensed.
Every driver in your household must be listed on your policy, as required by insurance companies. You can exclude your 16-year-old from your policy to avoid the rate increase by filing a form with your insurance company, but then they won’t be able to drive your car.
If they’re not yet licensed, a 16-year-old may not need to get their own insurance or join yours. Companies sometimes cover student drivers if they’re not fully licensed. To make sure you abide by the terms of your insurance contract, just contact your provider when your 16-year-old receives their permit. Once they receive their license, be sure to formally add them to your policy.
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How Much is Car Insurance for a 16-year-old?
Here’s the average annual car insurance rate for a 16-year-old who has their own policy:
- State minimum coverage: $2,511
- Liability limits of 50/100/50: $3,008
- Full coverage: $7,625 (Full coverage car insurance is a great choice especially choosing car insurances. )
Why is Car Insurance So Expensive? The cost of car insurance for a 16-year-old driver depends on a number of variables, including whether the teen is added to your policy, the state you live in, the kind of vehicle they drive, and the coverage limits. The cost of adding a teen driver can still be in the hundreds of dollars, even though it is less expensive than having a separate policy.
Do not forget that only emancipated adults or individuals who have attained the age of majority are eligible for a teenager to purchase their own insurance policy. Unless they are covered by a parent’s policy, they must be insured. Explore the answer: Average Cost of Car Insurance for 18-Year-Olds
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How Much Does Car Insurance Cost for a 16 Year Old Female in Each State?
A 16-year-old girl can purchase her own insurance for an average cost of $6,782 nationwide. The annual rate is $4,144 if the 16-year-old is included in a parent’s policy, a $2,638 savings.
16-year-old female drivers pay $843 less for their own insurance than male drivers of the same age. You can compare the cost of a parent policy with the child added on to the average insurance costs in each state for a 16-year-old female by viewing the table below.
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How Much Does Car Insurance Cost for a 16 Year Old Male in Each State?
For their own full coverage policy, males in their 16th year pay, on average, $7,625. This is $843 more than what women make. However, if a teenage boy is added to his parents’ policy, the annual rate drops to $4,462 annually, saving $3,163 annually. Read more: Average Cost of Car Insurance
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How to Get Car Insurance for a 16-year-old?
It’s more challenging to obtain coverage as a 16-year-old driver than it is for an adult driver. This is due to the fact that it is against the law for minors to sign an insurance contract on their own.
A guardian’s consent is required before a 16-year-old can purchase their own auto insurance. But, once they have permission, a 16-year-old’s car insurance works the same as it would for an adult driver.
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Tips for Getting Cheaper Car Insurance for 16-year-olds
There are still ways for teenagers to obtain affordable coverage even though the average 16-year-old’s annual car insurance rates can be thousands of dollars higher than those of older drivers.
Including your teen driver on your family policy is among the best ways to keep the price of 16-year-olds’ auto insurance low. Although it will increase the cost of your own auto insurance, it will still be thousands of dollars less annually than purchasing separate coverage.
You can also lower the cost of insurance for a 16-year-old by:
Search for driver-specific discounts: The majority of businesses, including Erie and COUNTRY, provide savings for young drivers who maintain good grades, complete driving courses, and occasionally are members of particular clubs. How Long Does It Take to Get Car Insurance?
Sign up for usage-based insurance programs: Most major car insurance companies offer discounts for using their usage-based or telematics programs. The company may reduce your rates (assuming your 16-year-old drives safely) after observing their driving behaviors.
Consider a pay-per-mile policy: You can pay by the mile for your car insurance with Liberty Mutual, Nationwide, Root, and Allstate. For 16-year-olds who don’t drive often and have their own cars, these policies might be less expensive.
Increase your deductible amounts: When you purchase your policy, you must choose a per-claim deductible for some coverage types, such as comprehensive and collision. Although you’ll pay less in premiums if your deductible is higher, you’ll have to pay more out of pocket when you make a claim.
Drop coverage for an older car: However, if your teen drives an older, low-value vehicle, you can save money on car insurance by removing comprehensive and collision coverage from that policy. You should still maintain as much liability insurance as you can.
The simplest way to find the cheapest car insurance for a 16-year-old driver is to compare the cost of coverage from various providers in your area, as average car insurance rates for 16-year-old drivers vary by company and greatly depend on location.
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How does car insurance work? The purpose of having auto insurance is to safeguard your finances in the event of an accident. Auto insurance can assist in paying for repairs to your car and medical care for your injuries if a tree falls on your car or you are the victim of a hit-and-run. It also provides liability coverage, in case you are at fault for an accident that causes injury or property damage to others.
Final Thoughts on Car Insurance for a 16 Year Old
A 16-year-old’s annual full coverage auto insurance premium averages $7,625 per year. The average annual premium for a 40-year-old driver with full coverage is $1,682, which is almost $6,000 higher than this rate. The companies with the cheapest car insurance for 16-year-olds were State Farm, Island, Erie, Mapfre, North Carolina Farm Bureau, and Erie. Full coverage car insurance is a great choice especially choosing car insurances.
Parenting a teen driver can be stressful and expensive. Even though it might be tempting to get your teen their own policy, adding them to your auto insurance policy is a great way to save money.
Make sure you are acting responsibly while driving and that teenagers adhere to GDL laws. Additionally, shop around for auto insurance each time it needs to be renewed to make sure you’re getting the best deal. This will help your teen understand the value of driving safely.
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