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Jamie Johnson is a Kansas City-based personal finance writer who’s been writing for Compare.com since 2023. Her work has also been featured on several of the top finance and business sites in the country, including Insider, Credit Karma, Bankrate, Rocket Mortgage, Fox Business, Quicken Loans, and The Balance.
For the past seven years, she’s dedicated more than 10,000 hours of research and writing to more than 2,000 articles about personal finance topics.
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Amanda Clear is a licensed Property and Casualty insurance agent who runs her family insurance agency providing coverage in the states of Connecticut, New York, and Vermont. She specializes in providing customized insurance packages to her clients that provide the best coverage for the price that they can afford. She holds a bachelor's degree in English from Sacred Heart University in Fairfield, CT, and works as a freelance editor, proofreader, and writer outside of her insurance career.
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While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
On average, it costs $254 per month to insure a 16-year-old driver — nearly double the national average for all drivers. Teens are much more likely to cause a car accident, so they pay the highest rates for car insurance. And, since a 16-year-old doesn’t have much of a driving record, it’s impossible to know what kind of driver they are — and how risky they are to insure.
Still, young drivers can save money on car insurance by taking advantage of discounts and joining their parent’s car insurance policy. Understanding your options and the average cost of car insurance is the best way to find cheap car insurance for a 16-year-old.
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USAA, State Farm, and GEICO are the cheapest car insurance companies for 16-year-old drivers, on average.
Teen drivers can save money on car insurance by shopping around, maintaining good grades, and taking a defensive driving course.
Parents can save money by adding a 16-year-old driver to their insurance policy instead of getting their own.
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A 16-year-old driver lacks the experience of more mature drivers, making them riskier for accidents and driving-related fatalities. Insurance companies compensate for this risk by charging higher rates to teen drivers.
But some insurers offer discounts and policies that favor teens. Let’s look at the cheapest insurers for 16-year-old drivers and the average annual savings, according to data from Compare.com.
Company | Average Monthly Premium | Average Yearly Savings* |
|---|---|---|
| USAA | $121 | $1,596 |
| State Farm | $147 | $1,284 |
| GEICO | $161 | $1,116 |
| Safeco | $184 | $840 |
| Allstate | $188 | $792 |
USAA is the cheapest option for 16-year-old drivers, with an average yearly savings of $1,596. USAA offers many ways for families of teen drivers to save, including a good student discount, multi-vehicle discount, and driver training discount. But keep in mind that it's only available to military members and their families.
State Farm is the second cheapest option, but it costs 20% more than USAA, so your yearly savings won’t be as significant. But USAA is only available to military members and their families, so State Farm is likely the cheapest option for most 16-year-old drivers.
Still, broad averages only tell part of the story. Since so many factors affect your car insurance rates — including location, driving record, and other factors alongside your age — the best way to find the cheapest company for you or your teen is by comparing personalized quotes from as many companies as possible.
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Your ZIP code is one of the biggest factors affecting your car insurance premiums. If you live in an area with high vandalism and theft rates or extreme weather conditions, you’ll likely pay higher premiums.
Many factors determine how much you pay for auto insurance, but it’s still helpful to understand what you can expect to pay before shopping for a new policy. The following table outlines how much 16-year-olds can expect to pay for car insurance by state and the cheapest company in each.
State | Statewide Average Monthly Premium | Cheapest Company | Cheapest Company’s Average Liability Premium |
|---|---|---|---|
| Alabama | $246 | COUNTRY Financial | $65 |
| Arizona | $317 | Auto-Owners | $90 |
| Arkansas | $331 | State Farm | $56 |
| California | $254 | Clearcover | $125 |
| Colorado | $292 | State Farm | $90 |
| Connecticut | $522 | State Farm | $113 |
| Delaware | $353 | USAA | $106 |
| Florida | $449 | GEICO | $113 |
| Georgia | $391 | Hugo | $108 |
| Hawaii | $175 | Midvale Home & Auto | $131 |
| Idaho | $209 | Safeco | $100 |
| Illinois | $242 | Auto-Owners | $54 |
| Indiana | $201 | Auto-Owners | $52 |
| Iowa | $220 | Auto-Owners | $38 |
| Kansas | $246 | Safeco | $115 |
| Kentucky | $400 | Auto-Owners | $132 |
| Louisiana | $511 | State Farm | $150 |
| Maine | $272 | USAA | $77 |
| Maryland | $377 | USAA | $183 |
| Massachusetts | $379 | Midvale Home & Auto | $152 |
| Michigan | $445 | USAA | $106 |
| Minnesota | $314 | Safeco | $118 |
| Mississippi | $320 | USAA | $77 |
| Missouri | $331 | USAA | $56 |
| Montana | $261 | Safeco | $99 |
| Nebraska | $285 | Auto-Owners | $45 |
| Nevada | $460 | COUNTRY Financial | $57 |
| New Hampshire | $175 | GEICO | $67 |
| New Jersey | $272 | NJM | $148 |
| New Mexico | $276 | State Farm | $64 |
| New York | $248 | CSAA | $218 |
| North Carolina | $155 | Midvale Home & Auto | $63 |
| North Dakota | $246 | Midvale Home & Auto | $99 |
| Ohio | $206 | State Farm | $73 |
| Oklahoma | $315 | State Farm | $60 |
| Oregon | $282 | Mile Auto | $112 |
| Pennsylvania | $259 | State Farm | $103 |
| Rhode Island | $418 | USAA | $183 |
| South Carolina | $474 | USAA | $95 |
| South Dakota | $211 | Safeco | $83 |
| Tennessee | $219 | State Farm | $42 |
| Texas | $340 | GEICO | $72 |
| Utah | $279 | USAA | $121 |
| Vermont | $218 | State Farm | $35 |
| Virginia | $262 | Auto-Owners | $67 |
| Washington | $290 | USAA | $99 |
| Washington D.C. | $420 | GEICO | $173 |
| West Virginia | $296 | State Farm | $67 |
| Wisconsin | $175 | USAA | $39 |
| Wyoming | $215 | Safeco | $76 |
North Carolina is the cheapest state for 16-year-old drivers, with an average monthly rate of $155. This is probably due to North Carolina’s largely rural population — at least 80% of North Carolinians live in rural areas, according to the Office of State Budget and Management (OBSM). And, since drivers who live in more densely populated areas tend to pay more for car insurance, North Carolina appears at the other end of the spectrum when it comes to average premiums.
State Farm and USAA are the cheapest companies in 11 states each, which means 16-year-old drivers in nearly half the country should consider the two companies for their first auto insurance policy.
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No one wants to spend more on car insurance than necessary, and, with rates so high for teen drivers, anything you can do to save helps. Here are four steps you can take to save money on car insurance for a 16-year-old driver.
Every insurance company prices policies differently, so the best way to save on car insurance is to shop around. Gather quotes from at least three different insurers to see which company offers the best rates and terms for your unique profile.
It’s also a good idea to get quotes from different types of insurance companies. For example, some sell policies online, while others use independent agents. Pay attention to the level of customer service you receive from each insurer, and check out each company’s online reviews.
Studies have shown that teen drivers who take driver’s ed are statistically less likely to get in an accident. In comparison, drivers who haven’t taken a driver’s education course are 75% more likely to receive a ticket, 24% more likely to be in a fatal car accident, and 16% more likely to have an accident, according to the University of Nebraska-Lincoln.
Taking an approved driver’s education course is also a good way to receive a discount on car insurance. Most insurance companies offer a driver safety discount to teen drivers, though you’ll usually have to show proof of completion.
Some parents are tempted to purchase a separate policy for their 16-year-old driver. That way, if the teen gets in a car accident, it won’t affect the parents’ insurance premiums. But this is generally the more expensive route. Adding a teen driver to an existing policy can help you save hundreds of dollars per year on auto insurance costs (as we’ll cover below).
Teen drivers can also save money on car insurance by maintaining a “B” average or higher in school. Teens who maintain good grades in high school tend to be more responsible, which is why insurance companies are willing to offer them a “good student” discount. And the good news is that this discount often extends to college students who are away at school, too.
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Many parents wonder whether they should add a young adult driver to their car insurance or purchase a separate policy. Both strategies have pros and cons, so the right answer will depend on your specific circumstances.
Adding a 16-year-old to a parent’s policy is usually cheaper than buying them their own. Adding your teen driver to your policy will qualify you for a multi-vehicle discount (if you have more than one car) and allow you to manage their coverage. But adding a teenager to your insurance will cause your rates to go up, especially if you’re ensuring a 16-year-old male.
Purchasing a separate policy for a 16-year-old will ensure your insurance risk doesn’t increase, and it could help teach your teen driver responsibility. But they’ll likely have higher premiums and access to fewer discounts, and you may have to purchase less robust coverage to save money. Plus, you’ll have to co-sign for the policy, since a 16-year-old is a minor and can’t sign legally binding agreements in most states.
Most parents experience sticker shock when it comes time to add a teen driver to their policy. The following table outlines what you can expect to pay before and after adding a 16-year-old driver to your policy from some of the country’s top insurers.
Company | Average Monthly Premium for Parents Only | Average Monthly Premium After Adding Child |
|---|---|---|
| Allstate | $135 | $317 |
| GEICO | $114 | $268 |
| Liberty Mutual | $188 | $441 |
| Nationwide | $184 | $432 |
| Progressive | $147 | $345 |
| State Farm | $110 | $258 |
State Farm is the cheapest option overall and the cheapest option after adding a teen driver to your policy. GEICO comes in at a close second, with average monthly rates that are only slightly higher than State Farm’s. Both companies offer a wide variety of discounts for teens and a telematics program, which likely contributes to these low rates.
Choosing the coverage levels for your teen driver is a big decision, and you may want to involve them in this process. Liability-only coverage will cost less, but the state’s minimum requirements are unlikely to protect you from a lawsuit if your teen causes a serious accident. If you choose to purchase liability-only insurance, it’s a good idea to purchase higher limits and even consider an umbrella policy.
If you’ve already picked an insurance company, you may want to contact your local agent for help. They can explain the costs of insuring a teen driver and outline the coverage options you need.
If your teen recently got their driver’s license, you’re probably weighing your options and looking for the best car insurance companies. Here’s some additional information about finding cheap car insurance for a 16-year-old driver.
USAA, State Farm, and GEICO are the cheapest insurance companies for 16-year-olds, according to Compare.com data. Each of these companies offers a wide variety of discounts that benefit teen drivers, like a good student and driver’s education discount.
A 16-year-old can get the best car insurance rates by choosing the right insurer, taking advantage of discounts, and increasing their deductible. Teens should also look for a car that’s inexpensive to insure and comes with additional safety features.
The average 16-year-old driver pays a monthly rate of $254 for car insurance, according to Compare.com data. In addition to age, your personal car insurance costs depend on your location, gender, credit score, and coverage levels.
Yes. A 16-year-old driver can have their own policy, but a parent will need to co-sign on the policy. And this is the more costly option — parents can save quite a bit of money by adding a teen driver to their current policy.
Sources
Office of State Budget and Management, “Is North Carolina Rural or Urban?” Accessed April 9, 2024.
Insurance Information Institute, “What determines the price of an auto insurance policy?” Accessed April 9, 2024.
Insurance Information Institute, “How to save money on car insurance,” Accessed April 9, 2024.
University of Nebraska–Lincoln UNL News Releases, “Study: Driver’s ed significantly reduces teen crashes, tickets,” Accessed April 9, 2024.
NOLO, “[Capacity to Contract](https://www.nolo.com/legal-encyclopedia/lack-capacity-to-contract-32647.html#:~:text=Minors%20(those%20under%20the%20age,food%2C%20clothing%2C%20and%20lodging),” Accessed April 9, 2024.
Insurance Information Institute, “Auto insurance for teen drivers,” Accessed April 9, 2024.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Jamie Johnson is a Kansas City-based personal finance writer who’s been writing for Compare.com since 2023. Her work has also been featured on several of the top finance and business sites in the country, including Insider, Credit Karma, Bankrate, Rocket Mortgage, Fox Business, Quicken Loans, and The Balance.
For the past seven years, she’s dedicated more than 10,000 hours of research and writing to more than 2,000 articles about personal finance topics.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
Amanda Clear is a licensed Property and Casualty insurance agent who runs her family insurance agency providing coverage in the states of Connecticut, New York, and Vermont. She specializes in providing customized insurance packages to her clients that provide the best coverage for the price that they can afford. She holds a bachelor's degree in English from Sacred Heart University in Fairfield, CT, and works as a freelance editor, proofreader, and writer outside of her insurance career.
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