How much is car insurance for a 16-year-old in Arizona?

It costs an average of $1,461 per year to add a teenager to your car insurance policy - an increase of 173% compared to the average driver's premium. The exact amount your insurance will go up depends on many factors, including where you live, your driving history, and your credit score.... read full answer

The most affordable way to cover a teen is to add them to your policy sharing the family car. Adding both a teen driver and a new vehicle to your policy would be more expensive than just adding your child as a listed driver on cars you’re already paying to cover. Adding a new car creates the need for more coverage, which costs more. It’s also way more expensive to get your teenager an individual policy, separate from your own, because sharing a policy with a more experienced driver brings rates down.

Below you can see how adding a 16-year-old driver to an existing policy compares to paying for a separate policy. Quotes assume Geico coverage and a 2014 Hyundai Sonata that is shared between the primary policyholder and the teen driver.

Cost of Adding a Teenager to Car Insurance

Note: Sample quotes are based on a 16-year-old driver.

Having a young driver on the policy can have drawbacks for the primary policyholder. Because your policy will pay for their claims, your teen’s driving habits become part of your insurance history. If your child gets into an accident, you will see premiums go up for everyone listed on the policy. Teens are risky drivers and four times more likely to crash, so your rates could definitely be affected. Premiums increase for about three to five years after a claim.

On the bright side, you’ll be eligible for discounts your teen might not be, like bundling with homeowner’s coverage. Plus, you may be eligible for additional discounts if your child has good grades, attends driver education courses, or takes a defensive driving class.

Most car insurance companies will require teenagers who live with parents to be listed on the parents’ policy. If you’re a parent of a teen with a learner’s permit, your teen should be typically covered by your policy with no action necessary on your part. But as soon as a teen driver is licensed, you’ll need to add them to your policy or prove that they are either insured or permanently residing elsewhere.

The cheapest way to get car insurance for a teenager is to add the teen to a more experienced driver’s policy, like a parent or guardian. Plus, it’s always a good idea to shop around and get quotes from multiple companies to find the cheapest option.

Although teenagers are able to get their own policies, car insurance for a teenager alone costs significantly more than if they are added to an existing policy. Taking advantage of discounts, reducing the amount of coverage, and changing deductible amounts are other simple ways to get cheaper auto insurance for teenagers.... read full answer

Cheapest Ways to Get Car Insurance for Teens

Add Teens to an Existing Policy

Adding a teenager to an existing car insurance policy can be significantly cheaper than having a teen get their own policy. For example, the average annual cost of car insurance for a 16-year-old in California is $2,845, while adding a teen added to a parent’s existing policy only increases the cost by about $1,461 per year.

Compare Quotes

Whether you’re a teenager shopping for your own policy or looking for a joint policy with a more experienced driver or parent, comparing quotes from several insurers is a quick way to make sure you’re getting the best rates possible.

Take Advantage of Discounts

Most insurers offer a wide range of discounts, from discounts for getting good grades to discounts just for being a member of specific organizations, such as a fraternity, sorority or honor society. These and other discounts can be combined to save teens up to 35% on their premiums.

Reduce Coverage

You need to have at least the state’s required minimum coverage, but optional types of coverage can be reduced or removed to help lower rates. This is an especially good option for teens who don’t drive often or who drive older, less valuable vehicles.

Change Deductibles

Raising deductibles can quickly reduce the cost of premiums, but you’ll have to pay more out of pocket for your claim if you are in an accident. Remember to only choose a deductible that you’d be able to afford in the event of a crash.

To learn more, check out WalletHub’s picks for the cheapest car insurance for teens.

The average cost of car insurance for a teenager is $215 per month, for an individual policy. Younger teens typically pay the most for car insurance coverage, with 16-year-olds paying an average of 85% more than 19-year-olds.

Average Cost of Car Insurance for Teenagers by Age

Teenagers are more expensive to insure than older, more mature drivers because they’re more likely to be involved in an accident, which makes them high-risk. In fact, teen drivers are nearly three times as likely to be involved in a fatal car accident as drivers over the age of 20, according to the CDC. Teenage boys are even more expensive to insure than teenage girls, paying an average of 10% more for coverage.

How to Lower the Cost of Teenage Car Insurance

Even though car insurance is typically expensive for teenagers, there are still ways to lower the cost of covering a young driver. One of the best ways to reduce the cost of teen car insurance is to add them to an existing policy rather than have them purchase their own policy. Adding a teen to a policy raises rates by an average of $1,461 per year, but it’s still cheaper than the cost of a separate policy. Also, look for discounts that are specifically for young drivers, like good-student and student-away-at-school discounts.

If your teen does need to purchase their own policy, they should compare quotes from at least three different insurers in order to find the best deal. The cheapest car insurance companies for teens are Travelers, USAA, and Progressive, according to WalletHub’s analysis.