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

If you’re trying to find a suitable car insurance policy as a 16-year-old, it can be somewhat difficult, especially due to significantly higher rates for the youngest drivers. The average car insurance cost for a 16-year-old is $241 per month, or 2,892 per year for minimum coverage, and $478 per month or $5,741 per year for full coverage.

If you compare the same policy rates for a 25-year-old driver, the average cost of minimum coverage is $75 per month, or $900 per year, and full coverage premium costs $277 per month, or $3,326 per year. 

Based on the comparison, as a 16-year-old driver, the average car insurance rates are 3.2 times higher for minimum coverage and 1.7 times higher for full coverage. This makes car insurance notably more expensive for 16-year-old teen drivers.

Average Car Insurance Rate for 16-Year-Olds by State?

Car insurance rates significantly vary across states. So, depending on the state that you’re located in, your car insurance premiums as a 16-year-old can widely differ from one state to another. The table below shows the average cost of car insurance for 16-year-old drivers by state in the U.S. 

Auto Insurance Rate for 16-Year-Olds by State

Source: Bankrate | As of November 2025 

Note: Car insurance rates are the highest for 16-year-olds in New York, California, and Michigan, with an average premium of over $7,000 per year. This can make it difficult to purchase adequate car insurance, particularly for 16-year-old teen drivers in these three states. So, that’s why it’s essential to explore a reliable insurance provider like USA Auto offering the most affordable auto insurance coverage across several states in the U.S.  

Why is Car Insurance Significantly More Expensive for 16-Year-Olds? 

When you compare car insurance rates by age, 16-year-olds consistently face the highest premiums. Rates generally decrease as drivers gain more experience, particularly after age 20. But why does age play such an important role in determining auto insurance costs? Here’s a detailed breakdown explaining why insurers charge significantly higher rates for young drivers, or more precisely 16-year-old teens.  

Lack of Driving Experience 

Insurers measure driving experience and analyze driving history to evaluate your chances of claiming car insurance. If you’re 16 years old, you practically don’t have any prior driving experience, and you’re considered a beginner as you just became eligible to acquire a learner’s permit and driving license in most states in the U.S.  

More importantly, without a track record of verifiable proof, insurers can’t determine whether you’re a safe driver or not. According to the CDC, teen drivers between the ages of 16 and 19 are three times more prone to causing a traffic crash compared to older age groups. Typically, the elevated risk profile of teen drivers is the main reason why 16-year-olds are generally charged significantly higher rates across the country.  

More Prone to Impulsive Driving

Usually, teenagers are more prone to impulsive driving behavior as they tend to indulge in sensation-seeking experiences quite deliberately, which includes recklessly speeding, pulling out dangerous car stunts. In addition to their impulsive driving behavior and a lack of driving experience, 16-year-old teen drivers are more likely to underestimate or not recognize dangerous situations.  

Apparently, 75% of teen driver crashes are due to critical errors in driving, which are usually caused by driving too fast, inability to respond to sudden road hazards, and being distracted. Additionally, crash rates are 1.5 times higher per mile for newly licensed 16-year-old teens compared to 18–19-year-old drivers.

Increased Chance of High Severity Claims

Insurance companies also consider the potential severity of claims when determining rates for 16-year-old drivers. Due to a combination of inexperience, higher accident rates, and risk-taking behavior, crashes involving teen drivers often result in more serious damage and higher medical and repair costs. 

Studies indicate that teen crashes more frequently involve high-impact collisions and multiple-vehicle incidents, which significantly increase claim payouts. When insurers expect a greater likelihood of expensive claims, they charge higher premiums to offset the financial risk. As a result, 16-year-old drivers typically pay some of the highest car insurance rates nationwide. 

Higher Likelihood of Traffic Violation

Teen drivers, particularly those at age 16, are more likely to receive traffic violations such as speeding tickets, failing to yield, or running red lights. Since they are still developing safe driving habits and judgments, they can often misread road situations or react too late to avoid mistakes.  

Insurance companies closely monitor these violations because they indicate a stronger likelihood of risky driving behavior and potential claims. So that's another concerning reason insurers charge significantly higher premiums for 16-year-olds to compensate for the increased risk associated with frequent traffic violations. 

Greater Chances of Distracted Driving

Teenagers are nearly four times more likely to become distracted while driving compared to adult drivers. According to the CDC, fatal crashes involving distracted drivers include a disproportionately higher percentage of young drivers between the ages of 15 and 20.  

Since teens are more likely to engage in distractions such as using cell phones, talking with passengers, or taking their eyes off the road, insurers view them as high-risk drivers. This is another major reason why 16-year-olds become a major concern when it comes to setting insurance rates, as distracted driving significantly increases the likelihood of serious accidents and costly claims. 

Can You Get Your Own Auto Insurance Policy as a 16-Year-Old Driver? 

On average, car insurance for a 16-year-old costs about $241 per month for minimum coverage and around $478 per month for full coverage. The exact amount can vary depending on factors like location, vehicle type, and driving history. 

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

Car insurance is generally more expensive for 16-year-old teen drivers as they are generally considered high-risk drivers due to limited driving experience, higher accident rates, and a greater likelihood of risky or distracted driving behavior. 

Will my car insurance go down when I turn 17 or 18?

Yes, auto insurance rates gradually decrease with age, particularly as you gain more experience and maintain a clean driving record, especially after age 18 and into the early 20s. 

What’s the cheapest type of car to insure for a 16-year-old?

Cars with strong safety ratings, good crash-test results, and lower repair costs, typically older sedans or compact cars, are the most affordable to insure for teen drivers.