What is the average cost of car insurance for a teenager?

The cost of car insurance typically goes down the most between the ages of 18 and 19, when rates drop by about 25% 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%.... read full answer

When Car Insurance Rates Go Down the Most

Note: The table above shows average annual rates for minimum coverage across all 50 states.

Around middle age, rates may begin to creep back up. This is because middle-aged drivers tend to insure newer, nicer cars and begin to add their children to the policy, increasing the average rate for this age range overall. Individual rates also start to go up again between the ages of 65 and 75 because senior drivers have a higher risk of accidents than middle-aged drivers.

Why Age Affects Car Insurance

Age affects car insurance rates because it’s an indicator of a driver’s risk to an insurance company. Young drivers are statistically more likely to get into a car accident than older, more experienced drivers. As a result, they’re considered high-risk and are more expensive to insure.

The risk for the insurer and the cost for the insured then generally decline as drivers age and gain experience. Once drivers pass the age of 65, however, their risk starts to go up again. Not only are senior drivers more likely to get into an accident than middle-aged drivers, but they’re also more likely to be injured as a result.

States Where Age Does Not Affect Rates

Although most people in the U.S. will find their prices change according to this timeline, there are a few states in which insurers can’t use age to determine your rate. In California, Hawaii, and Massachusetts, age won’t have a direct effect on how much you pay for car insurance. Other factors will still have an impact, though. Your driving record, credit score, and marital status can all affect your final premium.

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 ... read full answerinsurance companies first. Your parents’ insurance company may not offer you the best rates when you’re alone on a policy.

When You Can and Cannot Be on Your Parents' Car Insurance

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 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 ... read full answerhigh-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 Travelers, Geico, and USAA.

Cost of Car Insurance for a 16-Year-Old by Company

Note: Rates are an approximation based on a driver in California with minimum coverage. Actual rates will vary.

Cost of Car Insurance for a 16-Year-Old in the Largest States

Note: Rates are an approximation based on a driver with minimum coverage and a clean driving record. Actual rates will vary.

The exact cost of car insurance for a 16-year-old depends on a few other factors as well, 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 premiums, but will likely still be a more cost-effective option than having the 16-year-old purchase their own policy.

To learn more, check out WalletHub’s guide to the best car insurance for teens and young drivers.