You cannot be on your parents’ car insurance if the car is in your name and you are listed as the sole owner. Your parents can’t insure your car unless they are listed as owners. So if you are thinking about buying your own car, it is a good idea to ask for quotes from several insurance companies first. Your parents’ insurance company may not offer you the best rates when you’re alone on a policy.
If you are not listed as the sole owner of the car, you might be able to get even cheaper insurance. Living in your parents’ home allows you to list them as the owners of the car you’re driving, in which case you can remain on their policy and save money.
Additionally, If you are a college student who uses your parents’ address as your permanent place of residence, and you drive a car owned by your parents, you can remain on their policy. If you do not bring that car to college with you, you might be able to qualify for additional discounts.
Car insurance for a 23-year-old costs around $2,100 per year on average – about 33% more than the average U.S. driver pays for coverage. Age is one of the main factors insurance companies consider in setting premiums. Insurance statistics show that drivers age 21-24 are more likely than older drivers to be involved in car accidents.… read full answer
There are other factors that impact pricing, of course, including gender. Although the differences decrease over time, young male drivers are typically rated as higher risks and are charged higher premiums than young female drivers. The average premium for a 23-year-old female is about $2,000 per year, while it’s more than $2,200 for a 23-year-old male.
Another major factor is the type and level of coverage you plan to buy. The average annual premium of $2,100 is based on a policy that includes comprehensive and collision coverage. If you only want to purchase the minimum liability insurance coverage that’s required by your state, the average cost for a 23-year-old driver is about $730 per year.
The state you live in and the insurer you choose will also affect the amount you pay for car insurance. USAA (military families only) and GEICO are two companies that offer lower rates for young drivers, including 23-year-olds. However, the best way to find the cheapest policy is to get 3 to 5 free quotes and compare.
The average cost for teenage car insurance is about $430-$450 per month for an individual policy or $225-$300 per month as an add-on to a parent’s policy.
Insuring a teenager is expensive due to a high risk of insurance claims. Teenagers are more likely to be involved in accidents than any other age group, according to the Centers for Disease Control and Prevention (CDC). As inexperienced drivers, they make more mistakes. Roughly three-quarters of serious accidents involving teens are due to driver errors, according to the National Highway Traffic Safety Administration.… read full answer
Even among teenagers, age is a big factor in the cost of car insurance. The younger the driver, the more expensive the insurance. Premiums and risks are highest with 16-17 year olds, whose fatal crash rate is twice as high as for 18-19 year olds, according to the CDC.
Gender matters, too. The average teenage boy pays about 15% more for car insurance than the average teenage girl. Young male drivers are more expensive to insure because they are significantly higher risks, based on statistics. According to the CDC, the motor vehicle death rate for boys ages 16 to 19 is twice the rate of girls that age.
Adding teenagers to their parents’ auto insurance policy may be a good way to reduce family costs for insurance, but it isn’t always the best option. Teenagers may want independence; parents may want to protect family assets from liability. Whichever kind of policy is best for your family, shop carefully for the best prices. Look at companies like GEICO and Progressive that offer good rates for young drivers, and research discounts for good students and driver’s education.
Car insurance for a 16-year-old costs $295 to $1,170 per month, on average, depending on whether the policy is for the 16-year-old alone or the teen is added to a parent’s policy. Most 16-year-old drivers are covered on their parents’ policy because it’s cheaper. But in any case, the exact cost of adding a new driver to a car insurance policy can vary based on … read full answerfactors such as the insurer, location, car type, coverage limits, and more.
Average Cost of Car Insurance for a 16-Year-Old
Adding a 16-year-old to a parent’s policy costs an average of $1,765 for a six-month policy. A six-month policy for a 16-year-old alone averages $7,025—nearly four times as much.
Cost of Car Insurance for a 16-Year-Old Alone: $7,025
Cost of a Parent’s Policy Alone: $1,494
Cost of a Parent’s Policy with a 16-Year-Old Added: $3,257
The average cost to insure a newly-licensed teen varies widely by state. In states where insurance is more affordable, like Hawaii, Ohio, and Iowa, adding a 16-year-old to an existing policy raises premiums by as little as $100 to $175 each month. But in states like Michigan, Connecticut, and California, you could pay $500 or more per month to add a 16-year old to your policy. Rates also vary by gender, with 16-year-old boys paying about 16% more than girls.
Tips for Getting Car Insurance for a 16-Year-Old
A 16-year-old must be living at home to be covered on their parents’ policy. The benefit of adding a teen to your policy is much lower prices, but it does have possible drawbacks. If your teen driver has any accidents or moving violations, it will affect the entire family’s premiums. Your personal assets could also be at risk if your child gets into a serious accident. Nevertheless, most parents still choose to cover teenagers on the family policy.
Either way, be sure to compare prices from different insurance companies before making a decision. You should also see if your teen qualifies for any discounts to help minimize the extra cost.
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