Car insurance for 16-year-olds
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How much is car insurance for a 16-year-old?
Using March 2025 data provided by Quadrant Information Services, Bankrate's insurance editorial team determined the companies that are writing the most affordable policies, on average, for families that include a 16-year-old driver. Price is an important characteristic in this case because of the high average rates for teen drivers, but we also looked at other factors, such as coverage options, available discounts and third-party rankings for customer service and financial strength.
The average cost of car insurance for a married couple with no teen drivers is $2,495 a year for full coverage, which includes collision and comprehensive insurance. Adding a newly licensed 16-year-old to that policy, however, bumps that average rate to $5,757 — roughly 131 percent more. Adding an additional car for the teen may increase the rate even more. You’re also likely to see higher rates if anyone on the policy has tickets on their record, or if your credit score is subpar.
Average car insurance rates for 16-year-olds by state
Car insurance for 16-year-old drivers varies depending on the state in which the young person lives. Every state has its own regulations requiring the type and amount of insurance that is required to drive legally on public roads. Because of this, the average cost of car insurance for 16-year-olds varies across the country depending on your state of residence.
The average rates by state shown in the table below reflect a 16-year-old on their parents’ auto insurance policy. Note that the average rates for Hawaii are considerably lower. That's because Hawaii law prohibits insurers from basing rates on drivers’ age. Massachusetts also prohibits the use of age as a rating factor for insurance underwriting, but insurers can still base rates on the number of years a driver has been licensed, which still results in high rates for teens.
Best car insurance companies for a 16-year-old
There's no single company that is always going to be the best option for a family with a 16-year-old. Determining the best choice for your family's needs means first thinking about your priorities. Affordability, customer service and discount availability all matter to most customers, but other factors may be more subject to personal needs and preferences. Would you prefer to work with a local agent, or do you want to be able to self-service your policy at any time from your smartphone? Are you looking for coverage for multiple high-end vehicles, or would you like your insurer to offer low-mileage discounts? Your family’s unique needs can shape your shopping journey.
Once you know what is most important for you, it becomes easier to find a company that matches your needs. A good place to start your search may be with the companies listed below, which have a reputation for offering affordable coverage for families that include 16-year-olds, based on average rates.
| Car insurance company | Average annual min. coverage premium | Average annual full coverage premium |
|---|---|---|
| Nationwide | $1,554 | $4,012 |
| Geico | $1,346 | $4,622 |
| State Farm | $2,053 | $5,786 |
| USAA | $1,538 | $4,886 |
| Auto-Owners | $1,521 | $4,360 |
Nationwide offers low average rates for 16-year-old drivers and several discounts that may help policyholders lower their overall insurance premiums. Good student discounts are available for full-time students with a B average or better in school. Nationwide also offers two usage-based telematics driving programs, SmartRide and SmartMiles, which reward drivers for safe driving and low-mileage driving, respectively. Their customers must be satisfied with these programs because Nationwide scored first in the Usage-Based Insurance category in the 2024 J.D. Power Study. You can also personalize your car insurance with elective coverage options such as roadside assistance, gap coverage and accident forgiveness. Finally, Nationwide is ranked above average in the 2024 J.D. Power Auto Claims Satisfaction Study.
If you have a 16-year-old driver to insure, Geico may be a provider worth considering. Although its premiums are already competitive for households insuring teen drivers, Geico also offers a number of discounts to help keep costs low. Teens can take advantage of discounts for things like good grades, driver education and seatbelt use. The company also won the 2025 Bankrate Award for Best Auto Insurance Company for High-Risk Drivers. However, Geico has a limited number of local agents and relies primarily on digital tools for policy and claims management, which may not make it a good choice for those who want personalized service.
Since State Farm is the largest auto insurance company in the country by market share, it may be no surprise that it could also be an excellent choice for your 16-year-old driver. State Farm offers two discounts for young drivers: the Steer Clear safe driver training program and a good student discount that are similar to others offered by competitors. Steer Clear is a unique, app-driven program that includes driver training classes, behind-the-wheel practice and mentoring. Along with the potential for premium savings, your teen will earn a certificate upon course completion. State Farm also won the 2025 Bankrate Award for Best Auto Insurance Company for Safe Drivers.
USAA could be a great choice for military members, veterans or their immediate families. The insurer features low average rates and excellent customer service ratings from J.D. Power, although USAA is ineligible for official ranking due to its eligibility restrictions. Those insuring a teen driver might reduce costs with the driver training and good student discounts. You may enroll in USAA’s SafePilot program, which tracks your driving habits via telematics and assigns a discount accordingly. And if your teen decides to remain insured with USAA when they establish their own policy, they might earn a family discount or length of membership discount. USAA is also a winner of Bankrate’s 2025 Award for Best Auto Insurance Company Overall (tied with Amica).
Our list of best car insurance companies for 16-year-olds wouldn’t be complete without mentioning Auto-Owners, which won two 2025 Bankrate Awards: Best Budget Auto Insurance Company and Best for Young Drivers. In addition to low premiums, teens can earn three discounts tailored to young drivers without sacrificing personalized service. However, although Auto-Owners has local agents, the company only offers coverage in 26 states, and it scored below average in the 2024 J.D. Power Auto Claims Satisfaction and Insurance Digital Experience studies.
Cheapest car insurance for 16-year-old drivers
Let’s say your top priority is to keep costs as low as possible. If that is the case, you may want to look at the following companies, which offer some of the lowest average rates for teen drivers. Note that the average rates listed are for adding a 16-year-old to an existing policy that includes three drivers (the teen and their parents) and one vehicle, and that we chose carriers from among the more known and widely available companies. This keeps our results applicable to a wider number of readers, but you may find even more competitive rates with smaller companies that only operate in a few states.
| Car insurance company | Average annual min. coverage premium | Average annual full coverage premium |
|---|---|---|
| Farm Bureau | $920 | $3,064 |
| Cincinnati | $1,009 | $2,983 |
| Nationwide | $1,554 | $4,012 |
| Travelers | $1,393 | $4,789 |
| Auto-Owners | $1,521 | $4,360 |
Keep in mind that the rates shown in the tables above are national average premiums. Car insurance rates are personalized based on your rating factors, including the types of vehicles you own, where you live and the driving history of each person on your policy, so your actual rates could be higher or lower.
How to save on car insurance for a 16-year-old
Insuring a 16-year-old comes at a hefty price, but there are savings opportunities you may be able to take advantage of when insuring your teen:
- Good student discounts: Although the details vary among providers, your teen may qualify for a discount if they earn good grades — usually defined as a B average or better. You may want to contact your agent or insurance company for specific eligibility information.
- Telematics: Using a telematics device or app may save money and encourage your 16-year-old to practice safe driving habits.
- Usage-based discounts: Some companies offer a cheaper rate for people who drive fewer miles than average or low-mileage drivers. If you don’t plan on your 16-year-old driving often, a pay-per-mile usage-based insurance policy may also be a good option.
- Vehicle choice: The type of vehicle your 16-year-old drives can considerably impact your car insurance premium. If you decide to purchase a vehicle for your teen, consider a safer used vehicle to cut down on insurance costs. Talking with your insurance agent or company during vehicle shopping may help determine which coverage is best for your budget.
- Safe driving agreement: A safe driving agreement may not save you money directly, but it may provide peace of mind for parents as their teens test the boundaries of their newfound freedom on the road. A safe driving agreement may encourage your teen to remain accident-free and ticket free.
To see what teens and their parents had to say about saving money on car insurance, we reviewed real experiences shared on Reddit and Quora. Here’s what we found:
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
Know that these insurance costs won’t be high forever. As your young driver gains experience behind the wheel, you will likely see your insurance rates drop. But, planning for higher rates for a few years and knowing how to offset some hikes can help your budget.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze March 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates for our base profile are based on the following characteristics and full coverage limits:
Bodily injury liability
$100,000 per person$300,000 per accident
Property damage liability
$50,000 per accidentPersonal injury protection
$100,000 per accidentUninsured motorist bodily injury
$100,000 per person$300,000 per accident
Collision deductible
$500Comprehensive deductible
$500To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
Teens: Rates were determined by adding a 16-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.
