How Much Is Car Insurance for a 16-Year-Old?

Apr 9, 2024 | Personal Insurance

Your teen may be ready for the open road, but are you prepared for the cost of their car insurance? In most states, including Pennsylvania, a learner’s permit allows a teen to drive with a licensed, insured parent without needing their own insurance policy. As soon as they pass their driver’s test, however, they must be on a policy — and sticker shock can quickly follow. 

Don’t panic! You can get your teen the coverage they need to travel safely while saving yourself a little money. We’ll show you how much car insurance is for a 16-year-old and give tips to help you keep costs down. 

Average Cost of Auto Insurance for a 16-Year-Old

When you start looking for quotes on auto insurance for your 16-year-old, be prepared that their insurance will cost more than yours. Bankrate found that the average annual cost to insure a 16-year-old driver was $4,684, or a little over $390 per month. That’s nearly double what the average married couple will pay. 

Statistically, younger, inexperienced drivers are at a higher risk of getting into an accident, so insurance companies charge more to cover them. The insurance cost will drop as they get older, but for now, you’ll be paying a premium to insure a teen driver. 

Age isn’t the only factor influencing the cost of your teen’s insurance. Other factors include: 

  • Where you live. Homes in some zip codes will have higher monthly premiums if there are more accidents or higher vehicle theft rates in the area. 
  • The vehicle you drive. Newer cars cost more to repair or replace, so your insurance company will charge more to cover them. 
  • Coverage level. Your teen must carry at minimum liability coverage, but you can also pay more for comprehensive coverage for added protection. 

How to Bring Auto Insurance Costs Down for Your Teen

The good news is that you can help reduce the cost of insuring a teen driver in several ways. Here are a few to consider: 

Keep Them on Your Policy

Adding a teen to your current auto insurance policy is much less expensive than getting them their own. They’ll get the advantage of your good driving record and any discounts you may receive. Your teen can stay on your policy for as long as they live with you. 

Ask About Good Student Discounts

If your teen has a good GPA, ask your insurance company about “good student discounts.” These discounts reward responsible students for their good grades and can help lower monthly premiums if they stay above a B average.  

Enroll Them in Driver’s Ed

If your teen completes a state-sponsored driver’s education course, it may entitle them to a discount on their insurance. Look into additional safety courses they can take that might also get them a discount. 

Choose a Safe Car

If you want to buy your teen their own vehicle, check with your insurance company before purchasing. Some cars have better safety records, making them less expensive to insure. 

Bundle Your Insurance

Many insurance companies offer generous discounts for bundling your insurance policies together. If you have home or life insurance, talk to your insurance agent about how much you could save by bundling them. 

Shop Around

Don’t be afraid to shop around with different insurance companies. Some insurers charge more for teens, and others may offer better discounts. Get quotes from multiple insurers to compare rates and coverage options. 

Eber & Associates Can Help You Find the Right Policy 

Auto insurance for a 16-year-old can be expensive, but remember what you are insuring. A good insurance policy can help keep a teen safe, so the cheapest one isn’t usually the best option. Eber & Associates can help you find the right policy at the right price, giving your teen driver the coverage they need while balancing your financial needs. 

If your teen is learning to drive, let’s start exploring your insurance options now. Call us today for a free quote.