A full coverage car insurance policy for a 16-year-old is about $9,160 per year, on average. In comparison, an auto insurance policy with the state-minimum level of coverage costs about $3,192 per year for a 16-year-old.
Car Insurance Premiums for 16-Year-Olds
16 years old
$9,160 per year
$3,192 per year
25 years old
$1,679 per year
$815 per year
45 years old
$2,117 per year
$671 per year
65 years old
$2,028 per year
$680 per year
*Premiums are based on data from Quadrant Information Services; actual premiums will vary.
No, car insurance does not go up at age 16. Average car insurance premiums actually drop around this age as drivers grow older and become more experienced and responsible in the eyes of insurers. Car insurance at age 16 still is more expensive than the national average of $60 per month, however.… read full answer
Cost of Car Insurance by Age
Average Monthly Premium
16 years old
21 years old
22 years old
25 years old
45 years old
65 years old
Note: Premiums reflect state-minimum coverage.
It’s important to remember that age is not the only factor used to calculate insurance risk. Insurers also account for things like your driving record, your ZIP code, and the make and model of your vehicle.
Because companies use different factors to determine your premiums, it’s important to compare multiple quotes from different insurers to make sure you’re getting the best deal. To learn more, check out WalletHub’s guide to comparing car insurance rates.
Age affects the cost of car insurance by up to 389% on average because certain age groups are statistically more likely to be involved in accidents. Age is a factor in car insurance pricing in nearly all states, though California, Hawaii and Massachusetts do not allow the practice.
Teens, especially young male drivers, tend to pay the most for car insurance. However, once young drivers gain more experience, their premiums begin to decrease. Rates begin to rise again when drivers turn 70 years old.
Young drivers can be added to a family policy to help reduce the impact of their high insurance rates. Also, most insurers offer discounts specifically to help lower the cost of insuring a teenager, like good student discounts.
States That Do Not Use Age in Determining Premiums
Hawaii, California, and Massachusetts have laws that prevent insurance companies from using age to determine a driver’s premiums. However, insurers are still able to take driving and insurance history into account, so teens still tend to pay significantly higher rates.
Car insurance for a 16-year-old costs $211 per month, on average. Sixteen-year-old drivers pay more for car insurance than older, more experienced drivers because insurers consider them to be high-risk, meaning they’re more likely to file a claim.
Because the cost of coverage for 16-year-olds is so high, it's important to shop around for multiple quotes before buying a policy. Some of the best car insurance companies for 16-year-old drivers are … read full answerTravelers, Geico, and USAA. Comparing quotes is more important in some states than others, though, considering the average cost.
Note: These are the top 10 largest states by population.
The exact cost of car insurance for a 16-year-old depends on a few factors, including their driving record, gender, and vehicle type. Additionally, whether a 16-year-old is buying their own policy or being added to their parents’ policy makes a difference.
Adding a 16-year-old to an existing policy will raise the premium by an average of 140% to 160%. But even with the added cost, it’s still a more cost-effective option than having the driver purchase their own policy.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.