How much is car insurance for 16-year-olds in 2026?

For many teens, turning 16 means they can legally begin driving. It also means learning how expensive car insurance can be.  Adding a 16-year-old female to your policy costs $6,965 per year on average — and adding a male teen runs $7,553.

“New, young drivers pay the highest rates for car insurance because, as a group, they are statistically more likely to cause a crash than older, more experienced drivers,” says Carole Walker, executive director of the Rocky Mountain Insurance Information Association.

Most 16-year-olds can’t get their own policy unless they’re emancipated minors. But the expense would be far beyond what many teens that age could afford. A solo policy for a 16-year-old female costs $9,846 a year; for a male teen, it’s $10,928.

Here’s what to expect and how to lower your premiums.

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Contents

Table of Contents

Table of Contents

• Cost of adding a 16-year-old
• Insurance cost for a 16 year old female by state
• Insurance cost for a 16 year old male by state
• Cheapest insurance companies for a 16-year-old 
• Best car insurance for teens
• People also ask
• Ways to save on car insurance for a teen driver 
• Cheapest used cars to insure for a teen 
• Common mistakes parents make when insuring teen drivers
• Can a 16-year-old buy their own car insurance?
• Key takeaways: Car insurance for 16-year-olds
• Frequently Asked Questions: Car insurance for 16-year-olds
• Resources & Methodology

How much does it cost to add a 16-year-old to your car insurance? 

Adding a 16-year-old to your car insurance policy is expensive. On average, it raises your annual premium by $3,892 when you add a female teen and $4,480 after adding a male teen.

That brings the total parent-plus-teen premium to $6,965 with a female teen on your policy and $7,553 with a male teen.

Your current premium is the starting point. Most parents pay $3,073 a year before adding a teen driver, and adding a 16-year-old can more than double that cost. Insurers charge more because teen drivers, especially new drivers, have the highest crash risk of any age group.

Location matters, too. In Louisiana, parents pay an average of $10,932 with a female teen on the policy and $12,471 with a male teen. In Vermont, the same coverage averages $4,594 for a female teen and $5,114 for a male teen aged 16. That means the cost of insuring a 16-year-old is nearly 2.5 times higher, depending on where you live.

Teenagers can only get their own insurance policies if they’re emancipated minors. Otherwise, they’ll have to be insured under a parent’s policy.

Average car insurance rates for teens: 16-year-olds

Here are the average annual car insurance rates for a 16-year-old on their own policy:

• State minimum coverage: $3,302 
• Liability coverage with limits of 50/100/50: $3,787 
• Full coverage: $10,387

Average rates for a 16-year-old female by state

Adding a 16-year-old female to a parent’s policy costs an average of $6,965 a year nationwide. Rates vary widely by state, ranging from $4,594 in Vermont to $10,932 in Louisiana, a difference of nearly 2.4 times for the same coverage limits.

The table below compares the cost of a 16-year-old female’s solo policy with the cost of adding her to a parent’s policy.

Note: California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania don’t allow insurers to use gender to calculate premiums.

Average rates for a 16-year-old male by state

Adding a 16-year-old male to a parent’s policy costs $7,553 a year on average, compared with $6,965 for a female teen. The difference is significant, but it gets smaller as teens get older.

See the annual car insurance rates for a 16-year-old male in every state in the table below.

Note: California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania don’t allow insurers to use gender to calculate premiums. 

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Cheapest insurance companies for a 16-year-old 

Among widely available insurers, Travelers ($5,262) and Nationwide ($6,081) charge the least when you add a 16-year-old female to a parent’s policy, followed by Progressive ($6,157) and GEICO ($6,251).

The most expensive insurance company is Allstate at $9,067, a difference of $3,805 for the same coverage. USAA is cheaper at $5,119, but it’s only available to military families.

Cost of car insurance for a 16-year-old female by company

See rates for teen females by company in the table below

Note: USAA only offers its services to military members and their families.

Cost of car insurance for a 16-year-old male by company

Among widely available insurers, Travelers ($6,119) and Nationwide ($6,459) charge the least for a 16-year-old male on a parent’s policy, followed by Progressive ($6,502). USAA ($5,417) is cheaper but available only to military families. 

See rates for 16-year-old males on a parent’s policy in the table below.

Note: USAA offers its services to military members and their families.

Key terms: Auto insurance for teens

As you explore auto insurance on this page, you’ll come across key terms that might seem complex, but don’t worry—we’re here to help you understand them.

1. Full coverage: A type of car insurance that typically includes liability, collision and comprehensive coverages, offering broader protection.
2. State minimum limits: The lowest amount of insurance coverage required by law in a particular state for drivers.
3. Liability limits: The maximum amount an insurance company will pay for damages or injuries you cause to others in an accident.
4. Emancipated minor: An emancipated minor is a person younger than 18 who has been legally granted independence from their parents or guardians. This status allows them to enter into contracts, such as signing up for car insurance, without needing parental consent.  
5. Comprehensive insurance: It pays for damage to your car from non-collision events, such as theft, fire or natural disasters.
6. Collision insurance: It pays for damage to your car resulting from a collision with another vehicle or object.

How to choose the best insurance company for your teen

To find the best insurance company for a teen driver, begin by comparing quotes from various insurers, focusing on those that offer discounts for good grades, safe driving and bundling policies. 

Focus on companies known for providing affordable rates and flexible coverage for young drivers. Additionally, review customer feedback and financial strength ratings to ensure dependable service and support. 

The table below highlights the top insurers for teen drivers.

Note:

• Claims experience: J.D. Power 2025 score above 700 signals above-average satisfaction.
• Complaint ratio: A NAIC complaint index below 1.0 indicates fewer complaints than expected for the carrier’s size.
• Financial strength: AM Best A+ or A++ means the carrier can reliably pay claims. 

States that prohibit the use of gender to calculate car insurance rates

States such as California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania have laws prohibiting gender as a factor in calculating car insurance rates. These states aim to create a more equitable pricing model by preventing gender-based discrimination and ensuring that premiums are determined by factors such as driving history, vehicle type and location.

People also ask

Ways to save on car insurance for a teen driver 

Teen rates are expensive, but they aren’t set in stone. Families can often save by combining discounts and making smart coverage choices. The biggest wins usually come from keeping the teen on the family policy, taking advantage of a good-student discount and driving a safer, lower-cost vehicle.

Even though 16-year-olds pay hundreds more for car insurance than older drivers, there are ways to reduce the cost.

• Obtain coverage through a parent or guardian. Adding a child to the family car insurance policy can cost hundreds or thousands of dollars less than if a teen purchases their own coverage.
• Choose an affordable make and model. Popular models like the Toyota RAV-4, Kia Soul and Mazda CX-5 are among the cheapest vehicles for teens to insure.
• Raise your deductible: If you can afford it, choosing a higher deductible for comprehensive and collision insurance can lead to a lower premium.

• Drop unnecessary coverage: If your teen drives an older vehicle that has depreciated significantly and is paid off, it may no longer be worth carrying comprehensive and collision coverage. Liability insurance is still a must.
• Look for car insurance discounts for teens. Common teen discounts include: 
  1. Good student discount: A savings of up to 12% may be available for drivers who maintain a 3.0 or “B” average in the classroom.
  2. Student-away discount: College students living away from home may qualify.
  3. Driver training discount: Teen drivers who complete a driver training program may be eligible for a car insurance discount.

Cheapest used cars to insure for a teen 

The cheapest used cars to insure include the 2015 Smart Fortwo ($5,594/yr), 2015 Mazda MX-5 Miata ($5,715) and 2015 Subaru Outback ($5,719). 

The table below shows the cheapest used cars that cost the least to insure for a teen driver: 

What are the safest cars for a 16-year-old?

Your insurance company may reduce your rate if you buy a safe car for your teen. The Insurance Institute for Highway Safety (IIHS) offers some basics when looking for a safe vehicle for your teen:

• Vehicles with more powerful engines can tempt (young drivers) to test the limits, according to the IIHS.
• Electronic Stability Control (ESC) helps maintain control on curves and slippery roads.
• Consider cars with top ratings from the IIHS and the National Highway Traffic Safety Administration.

Common mistakes parents make when insuring teen drivers

When insuring teen drivers, parents often make some common mistakes that can lead to higher premiums or insufficient coverage. 

• Choosing the minimum coverage: To save on premiums, some parents opt for the minimum required coverage. However, this might leave the teen driver underinsured, especially in serious accidents where damages exceed coverage limits.
• Ignoring discounts for good grades or driver’s education: Many insurance companies offer discounts for teens who maintain good grades or complete a driver’s education course. Parents often overlook these discounts, missing out on potential savings.
• Not comparing quotes from multiple insurers: Insurance rates for teen drivers can vary significantly between companies. Failing to shop around and compare quotes can lead to higher insurance premiums.
• Assuming all teen drivers are the same: Insurance companies assess risk differently for male and female teen drivers and may offer different rates based on their driving records, grades and other factors. Parents often assume rates are the same across the board and miss out on customized pricing.

• Forgetting to update the policy as the teen gains experience: Over time, as the teen gains driving experience and maintains a clean driving record, they may become eligible for lower premiums. Parents often forget to review and update the policy to reflect these changes.

Can a 16-year-old buy their own car insurance?

In most states, a 16-year-old can’t legally buy their own car insurance policy unless they’re an emancipated minor. They can only be insured under a parent’s or guardian’s policy.

If you are an emancipated 16-year-old, you can buy a solo policy, but it costs $9,846 for females and $10,928 for male teens.

Insurance contracts are binding legal agreements, and most states don’t let minors sign them. A 16-year-old is treated the same regardless of whether the household is two-parent, single-parent, grandparents raising a grandchild, foster parents or in any other situation.

The policy is in the adult’s name, the teen is a listed driver, and the math works out the same.

Car insurance cost for a 16-year-old with their own policy

For most 16-year-olds, going solo isn’t an option — they can’t legally sign a policy. For emancipated minors who can, expect to pay more than if they were added to a parent’s policy.

Key takeaways: Car insurance for 16-year-olds

Being the parent of a teen driver is stressful and expensive. Adding your teen to your auto insurance policy is a great way to save money, even if getting them their own policy is tempting.

Ensure you are displaying good driving behavior and that teens follow GDL laws. Additionally, shop for car insurance at each renewal to ensure you get the best deal, which will help your teen understand the importance of driving safely.

Frequently Asked Questions: Car insurance for 16-year-olds

Why is car insurance for 16-year-olds so expensive?

Car insurance companies base rates on risk. They consider a person’s driving experience, claims history, location, vehicle type and other factors. A driver with a risky (or limited) driving record will pay more than a motorist without a claim.

The risk of car crashes is highest among teens aged 16 to 19, as compared to any other age group, according to the Centers for Disease Control and Prevention. And per mile driven, teen drivers 16 to 19 are almost three times as likely to be in a fatal crash as drivers 20 or older.

Must a 16-year-old buy full coverage insurance?

There is no law requiring teen drivers to have full coverage. However, if the car you are driving is leased or financed, the lender will require full coverage, including comprehensive and collision insurance.

To drive legally, you need state-required liability insurance, which pays for the damage and injuries of others in accidents you cause. However, because teens are inexperienced and, as a demographic, have more accidents than experienced drivers, it’s wise to have full coverage for the car your teen drives.

Does a 16-year-old need car insurance to get a license?

If you’re driving, most states require you to have minimum liability insurance. But a 16-year-old hoping to get his first license only has to show that his vehicle’s owner already has coverage. Teen drivers face driving restrictions before and after receiving a driver’s license. States have varying levels of Graduated Driving License (GDL) laws. 

What are the rules for 16-year-old drivers?

Most states have laws restricting where and when 16-year-olds can drive. These stipulations, known as Graduated Driver License (GDL) laws, apply to drivers younger than 18. GDL laws vary by state, with some states having stringent GDL laws and others having lenient ones. Over time, you “graduate” from a provisional or restricted license you got as a teen to a standard license with no restrictions.

Can a 16-year-old have their own policy?

In most states, a 16-year-old can’t sign a policy on their own unless they’re an emancipated minor. A parent or guardian must add them to their policy. 

Can a 16-year-old own a car?

Minors generally can’t sign binding contracts, so financing and insuring are done in the adult’s name; title and registration rules vary by state. 

In most states, a parent must cosign on a car loan and any other financial paperwork the dealership requires. So, while a juvenile can be a party to an auto purchase, the parent will be the legal owner. This is also why a 16-year-old cannot have their own car insurance policy. 

Does a teen need car insurance to drive with a learner’s permit?

A novice driver needs insurance, but not under their own policy. Parents must add teen drivers to their policies once teens are licensed. Still, it’s wise to let your insurer know that you have a student driver. 

Resources & Methodology

Sources

1. Centers for Disease Control and Prevention. “Risk Factors for Teen Drivers.” Accessed June 2026. 
2. Governors Highway Safety Association. “Teen and Novice Drivers.” Accessed June 2026. 
3. Insurance Institute for Highway Safety, Highway Loss Data Institute. “Teenagers.” Accessed June 2026. 

Methodology

CarInsurance.com commissioned Quadrant Information Services to get car insurance rates for 16-year-old male and female drivers. The rates are for state minimum, liability-only (50/100/50), and full coverage policy with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.

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Scott Nyerges Managing Editor

Scott Nyerges is a Texas-based insurance expert with extensive editorial experience. He previously served as a senior insurance editor and content strategist at U.S. News & World Report and has also worked with Consumer Reports, MSN and Cheapism.com, providing trusted insights on insurance and personal finance.

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Matthew R. Auer Industry Expert

Dr. Auer, an expert on how climate change challenges the way insurers model risk, is arch professor of public and international affairs and full professor of public administration and policy at University of Georgia. His research focuses on the politics of decision-making in the arenas of environmental protection, energy policy, and forest policy. His recent research considers social media as a space for influencing users’ perspectives of environmental risks.

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Laura Longero is the editor-in-chief of CarInsurance.com and a Nevada-based insurance expert. With more than 15 years of experience simplifying complex financial and insurance topics, she provides clear, trustworthy guidance to help drivers make confident coverage decisions. She serves as a media spokesperson for CarInsurance.com and has been featured in Consumer Affairs, MotorTrend and Business Insider, and completed the pre-licensing course in Personal Lines Property & Casualty Insurance.

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