On average, adding a 16-year-old driver to a full coverage policy costs about $3,824 per year.
To find the most affordable car insurance for young drivers, the best approach is often to add them to a parent’s or guardian’s existing policy.
This method can help lower the premium. Additionally, certain discounts designed specifically for young drivers can make the insurance costs more manageable.
Car insurance for teenagers and young drivers can be quite costly, mainly because they are viewed as high-risk due to their inexperience behind the wheel.
Unfortunately, this means that insuring them often comes with a high price tag, sometimes costing thousands of dollars annually.
Typically, it’s much cheaper to add a young driver to a family’s auto insurance policy than to purchase a separate policy for them.
To get the best deal, it’s important to shop around and request quotes from different insurance companies.
Here’s an idea of how much insurance might cost for young drivers, based on rates for families adding a teen or young driver to their existing policy.
The Best Car Insurance Options for Young Drivers For a teen or young driver, the best option is usually to be added to a parent’s or guardian’s car insurance policy. This is often cheaper than getting a separate, standalone policy for the young driver. The reason for this is that young drivers are considered high-risk, mainly due to their lack of driving experience, and a higher likelihood of being involved in accidents or engaging in reckless driving behavior.
Adding a teen to an existing policy could also make the family eligible for more discounts. For example, many insurers offer discounts for insuring multiple vehicles under one policy.
There are also discounts available for teens who maintain good grades or practice safe driving habits.
However, there are exceptions. For instance, if a family owns an expensive sports car that the teen driver won’t be driving, it may be cheaper to get them their own policy rather than adding them to the family plan.
Understanding the Cost of Car Insurance for Teens The cost of car insurance for teens is high due to several factors.
Data from the Insurance Institute for Highway Safety shows that teen drivers are involved in crashes four times more often than drivers aged 20 or older.
Additionally, car accidents are the leading cause of death for teenagers, according to the Centers for Disease Control and Prevention.
Teens also tend to lack a credit history, are often unmarried, and may not have completed as much formal education. All of these factors can contribute to higher insurance rates for young drivers.
The cost varies depending on factors like the state the teen lives in, their age and gender, and whether they are the primary policyholder. Here’s a breakdown of the average costs for different family structures:
Car Insurance Costs for Teens in a Two-Adult Household The following are average rates for car insurance policies that cover two adults and a teen driver. These rates compare teens driving their own older car versus teens sharing a family vehicle:
- 16-Year-Old Driving Older Car: $5,941
- 16-Year-Old Sharing Family Car: $6,535
- 17-Year-Old Driving Older Car: $5,301
- 17-Year-Old Sharing Family Car: $5,686
- 18-Year-Old Driving Older Car: $5,023
- 18-Year-Old Sharing Family Car: $5,239
In comparison, the average annual cost to insure two adults on a policy is $2,711.
As teens get older and gain more driving experience, their insurance premiums usually decrease. For example, households insuring a 16-year-old will typically pay at least 18% more than those insuring an 18-year-old.
Car Insurance Costs for Teens in a One-Adult Household Here’s a look at the rates for households with one adult and a teen driver:
- 16-Year-Old Driving Older Car: $4,486
- 16-Year-Old Sharing Family Car: $2,134
- 17-Year-Old Driving Older Car: $3,956
- 17-Year-Old Sharing Family Car: $1,833
- 18-Year-Old Driving Older Car: $3,675
- 18-Year-Old Sharing Family Car: $1,671
For comparison, the average cost to insure one adult is $1,794 per year. A single-parent household insuring a 16-year-old will generally pay at least 22% more than a household insuring an 18-year-old.
Car Insurance Rates for Teens Based on Gender Insurance premiums for young women can still be costly, but in general, young men face some of the highest rates. This is mainly because young men are statistically more likely to get into accidents compared to other groups, especially at a younger age.
Teenage males, in particular, tend to be involved in fatal accidents at much higher rates than adults aged 20 or older. In fact, teens aged 16 to 19 are responsible for nearly three times as many fatal crashes as older drivers, with young men accounting for the majority of those accidents.
Here are the average rates for car insurance policies with two adults and a teen driver, broken down by gender:
- 16-Year-Old Female: $7,203
- 16-Year-Old Male: $8,161
- 17-Year-Old Female: $6,095
- 17-Year-Old Male: $6,918
- 18-Year-Old Female: $5,683
- 18-Year-Old Male: $6,458
On average, policies with male teen drivers cost up to 14% more than those with female drivers of the same age.
How to Save on Car Insurance for Teens To save on car insurance for young drivers, the best strategy is to add them to a parent’s or guardian’s policy instead of purchasing a separate policy. You should also shop around to compare quotes from multiple insurance providers to find the best price.
Keep an eye out for discounts, which can help lower the premium:
- Good Grade Discount: Many insurers offer discounts for teens who maintain a high GPA or get straight A’s.
- Defensive Driving Discount: Some companies offer discounts for teens who complete a defensive driving course.
- Tracked Driving Behavior Programs: Some insurers provide discounts for young drivers who participate in programs that track their driving behavior.
- Student Away-at-School Discount: If a teen is away at school, they may qualify for a discount if they are not driving their car regularly.
Additionally, it’s typically cheaper for teens to share a family car rather than having their own vehicle. This not only saves on the cost of an extra vehicle, but having fewer cars on a policy can also lower the overall premium.
Join Gen z and millennials TaskForce official 2025 WhatsApp Channel To Stay Updated On time the ongoing situation https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
