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The average cost of car insurance for a teenager is $243 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
| Age | Average Annual Premium |
| $3,192 per year | |
| $2,647 per year | |
| $2,325 per year | |
| $1,623 per year |
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.
People also ask
When does car insurance go down?
The cost of car insurance typically goes down the most between the ages of 18 and 19, when rates drop by about 30% on average. Car insurance premiums generally continue to go down each year until age 25, when rates begin to level off for the next few decades. When drivers turn 25 years old, they can expect a discount of about 14%.
When Car Insurance Rates Go Down the Most
| ... | Average Rate | Change from Previous Age |
Can I be on my parents car insurance if the car is in my name?
Yes, you can be on your parents’ car insurance if the car is in your name, depending on the insurance company and the state you live in. Plus, you need to share the same residence, and your parents may need to be listed as co-owners.
When You Can and Cannot Be on Your Parents' Car Insurance
| Situation | Can you be on your parents' insurance? |
How much is car insurance for a 16-year-old?
Car insurance for a 16-year-old is $3,192 per year for minimum coverage, on average. Sixteen-year-old drivers pay an average of $9,160 per year for full coverage, which typically includes comprehensive and collision insurance in addition to the state's minimum requirements.
Sixteen-year-olds 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...
read full answer by Candace Baker, Car Insurance WriterDid we answer your question?
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