4 Must-Know Factors about Car Insurance for a 16-year-old

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Here's what you need to know...
  • There are many factors impacting the rates of a teen’s auto insurance
  • Generally speaking, teens will pay a higher rate than any other age group
  • There are things a teen can do to keep their rates as low as possible

The cost of car insurance for a 16-year-old depends on a number of factors. Parents and teens need to understand that no matter where the vehicle will be operated, all drivers must carry at least the minimum amount of liability coverage required by the state.

The teen’s gender and performance at school also play a part in the cost of getting car insurance coverage.

To get personalized teenager car insurance quotes, do a full car insurance comparison by entering your zip in on the side of this page and comparing quotes!

Car Insurance Coverage Basics

Each state in the U.S. sets the minimum level of car insurance that all drivers must carry.

Liability insurance protects the occupants of the other vehicle when an accident occurs.

  • Bodily injury liability insurance coverage pays for medical expenses incurred by people who have been hurt in an accident. This type of coverage may also compensate someone for lost wages if they are unable to work following the incident. In the case of a fatal accident, the bodily injury liability coverage pays out for funeral expenses.
  • Property damage liability insurance pays for the cost of repairs to the other driver’s vehicle. It is also used to pay to repair objects such as fences, signposts, and mailboxes that are damaged in an accident.

Even though there is a minimum level of coverage required for bodily injury liability and property damage insurance, it may not be sufficient to pay for medical and other expenses incurred as the result of an accident.

Drivers may choose to buy more than the minimum level of coverage if they wish.

There are three major factors that impact car insurance rates for teens. Read on to find out more.

#1 – Gender

When car insurance companies consider whether to offer insurance coverage to a teen driver, the underwriters consider the risk the person presents.

Teenage boys are considered to be a higher risk than girls, and rates are higher for young males as a result.

Part of the equation is that teen males are considered more likely to engage in potentially dangerous behavior on the road, and the other consideration of why it costs more to insure teens is a lack of experience behind the wheel.

Our team gathered some real quotes from different insurance companies and compiled them right here. Below, you will see the average rates for 16-year-old males and females in the most expensive state for which quotes were available, Florida, and the cheapest state, Maine.

Customer DescriptionProgressive QuotesAllstate QuotesGeico Quotes
Female in Maine$245.07$119$234.54
Male in Maine$265.07$164$246.19
Female in Florida$501.55N/A$332.04
Male in Florida$517.67N/A$374.47

Driving is a skill, and it takes time to develop it. A person who has recently received his or her license is less likely to recognize hazardous situations than someone who has been driving for a number of years.

The good news about the cost of car insurance is that as a person gets older and gains experience behind the wheel, cost should decrease as long as the person keeps a good driving record.

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#2 – Academic Performance

Students who perform well in school may qualify for better rates for their insurance coverage. Insurance companies consider students who can maintain at least a B average as being mature and responsible.

Doing well at school speaks to a person’s character and insurers are prepared to reward students who can demonstrate that.

Here are a few of the companies that offer discounts for good students:

#3 – Completing Driver’s Education

Another way that a teen can show the insurer that they should be considered for a better rate for coverage is to successfully complete a driver’s education course.

Learning the rules of the road from a qualified instructor helps the new driver to get off to the best possible start. In the case of a teen that is getting behind the wheel for the first time, that means gaining the skills needed to operate it safely in various situations and in all weather.

The cost of car insurance for a 16-year-old varies, depending on the insurance company. It really pays for teens and their parents to shop around for coverage.

In some cases, the best choice is to add the teen as an additional driver to the existing insurance policy.

Doing a Teen Car Insurance Comparison

Don’t settle for the rate your existing car insurance company will quote you. Since your insurance situation has changed, it may be time to look at all of your options for car insurance coverage.

Each insurance company uses its own criteria to determine risk and set rates, so it really pays to shop around to find the best combination of coverage levels and price for teen drivers.

Our FREE insurance quote will help you compare insurance companies’ premiums. Just enter your zip code to get started!

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