In most states in our country, the minimum age requirement to be able to drive is 16 years old. And with that responsibility comes the costs of car insurance.
Parents (who often add their child to their car insurance policy) are the ones who usually have to pay for this coverage. And it does not come cheap!
Below, we look at “how much is car insurance for a 16 year old” so you have an idea of what you can expect.
Rates for 16 year olds tend to be some of the highest (all else being equal) rates you’ll find. Now that you’re warned, let’s look at the numbers.
How Much Is Car Insurance For a 16 Year Old?
First things first, for a 16 year old who is on their own policy, the average rate of car insurance is around $583 a month, or $7,000 a year.
That’s a good $5,000 a year more than the average rate for drivers twice that age.
These costs are for full coverage on their own car insurance policy. The good news is that there are less expensive options available.
Less Expensive Options
A teen can save a lot of money by taking out a policy that meets their state’s minimum coverage requirements. The average cost of this type of coverage is around $219 a month, or $2600 per year.
The downside of this, however, is that in the case of an accident, you could be on the hook for a lot of out of pocket costs. Potentially tens of thousands of dollars or more in the case of a bad wreck with serious injuries.
Adding a Teen To a Parent’s Car Insurance Policy
If you’re a parent with your own car insurance policy, you can add your teen to it. This can save a lot of money. For full coverage, the average cost to add a teen to a parent’s policy is around $1750 per year.
Why Is It So Expensive?
Now you may be wondering why is car insurance more expensive to 16 year olds compared to older people. Well there are certain factors why that is so.
The first reason why car insurance is more expensive to younger people is because of driving experience. Teens just don’t have much experience behind the wheel.
So that means that 16 year olds have higher risks of getting into accidents compared to older people. And in insurance, the higher the risk, the more expensive the premium.
Factors That Affect The Cost
One of the major factors that affect the cost of car insurance for a 16 year old is their gender. It costs a lot more to insure a boy than a girl.
The reason is because, according to statistics, girls are safer drivers than boys are.
The yearly premium of car insurance for 16 years old females is $6,562. On the other hand, their male counterparts pay $6,930 per year for car insurance premiums.
The state you live in will also be a big factor in the rates. For example, a policy for a 16 year old male averages around $1500 in Hawaii. In Michigan, however, that policy averages around over $14,500!
The car insurance company you use also has a big impact on rates. It definitely pays to shop around because you could save thousands.
Car Insurance Discounts For 16 Year Old Drivers
The good thing is that car insurance companies often offer discounts to 16 years old because they assume that they are students.
Discounts are often given to good students or students enrolled in defensive driving courses.