As we review the quotes obtained at CarInsurance.com, we find that the average six-month price for a policy with a 16-year-old is $1,745.93, or $291 a month. To find out what you'd pay, spend 8 minutes on a car insurance quote at CarInsurance.com.
Here is some general information on the cost of insurance for a newly licensed 16-year-old.
On average, a 16-year-old can expect to pay 2.52 times the base rate for their insurance. So if parents pay $500 for a year of car insurance, then a 16-year-old can expect to pay $1,260 for a year of auto insurance coverage. (See "What a teenager does to your car insurance rates")
There are many risk factors looked at by auto insurers, such as where you live. For example, in New Jersey a 16-year-old may pay 3.2 times the base rate, but in Montana they pay 1.9 times the base rate. These are all generalizations that are intended to explain that rate calculations require more than just age. Here are a few of the factors taken into account to determine your car insurance rates:
- Your age
- Marital Status
- Accident claims
- Driving violations
- Your vehicle
- Credit rating
Other factors that can go into determining premiums:
- Years of driving experience
- Miles driven per year
- Distance to work
- Business use of the vehicle
There are things a 16-year-old teenager can do to try and bring down the cost of their auto insurance premium. It is generally cheaper to be added to your parent's insurance policy than for you to purchase your own. Discounts like a good student discount can help. Most companies will give discounts for getting at least a "B" average in school. Taking a recognized driving courses or driver's educational program may also help to lower a teenager's insurance rate. (See "A parent's guide to insuring a teen driver")
And, don't forget to comparison shop. A family can save hundreds, if not thousands, a year on car insurance by shopping around to find the best priced auto insurance provider for their needs.
For more consumer information, some specific for your state, contact you state's insurance regulator. Some state agencies have rate comparison tables online that you can review to get a feel for what average rates are in your state for auto insurance.