The top three cheap car insurance companies for 16-year-olds are Erie, Geico, and State Farm, each excelling in affordability and coverage for young teen drivers.
Erie stands out as the top pick overall for its combination of low costs and strong policy options, making it the best choice for new drivers.
Company | Rank | Monthly Rates | A.M. Best | Best For | Jump to Pros/Cons |
---|---|---|---|---|---|
#1 | $95 | A+ | Competitive Rates | Erie | |
#2 | $125 | A+ | Broad Coverage | Geico | |
#3 | $146 | B | Reliable Service | State Farm | |
#4 | $195 | A+ | Customer Focus | Nationwide | |
#5 | $207 | A | Strong Discounts | American Family | |
#6 | $260 | A+ | Extensive Options | Allstate | |
#7 | $317 | A | Flexible Policies | Farmers | |
#8 | $325 | A | Comprehensive Plans | Liberty Mutual | |
#9 | $327 | A+ | Innovative Tools | Progressive | |
#10 | $362 | A++ | Financial Strength | Travelers |
Geico and State Farm are right behind with competitive rates and discounts designed for teens, giving customers more ways to save on car insurance.
Ready to find cheaper teen car insurance coverage? Enter your ZIP code above to begin.
What You Should Know
- Erie is the top pick with affordable car insurance rates for 16-year-olds
- Insurance for 16-year-olds will cost more since teens are considered high-risk drivers
- The best providers offer discounts designed to meet the needs of young drivers
#1 – Erie: Top Pick for Low Premiums
Pros
- Affordable Prices: Erie begins at only $95 each month, which makes it one of cheapest choices for 16-year-olds.
- New Driver Discounts: Erie offers special discounts to help 16-year-olds save on car insurance.
- Wide Coverage Options: Erie offers many different coverage choices just for young drivers. You can read more details in our review of Erie's car insurance.
Cons
- Limited Online Tools: Erie doesn’t have as many digital resources for teens compared to other insurers.
- Higher Deductibles: Teens, including 16-year-olds, might face higher deductibles, which can mean more out-of-pocket costs.
#2 – Geico: Best for Wide-Ranging Coverage
Pros
- Generous Discounts for Teens: Geico provides discounts on good grades and safe driving habits for teens.
- Driver Training Savings: Geico provides additional discounts for teens who join a driver education program.
- Accident Forgiveness Coverage: Protects 16-year-olds from higher insurance rates after their first accident. Learn more in our car insurance claims ratings.
Cons
- Problematic Customer Service: Teens may have a negative experience with customer service if there are patches where they wait longer than expected for a response.
- Limited Customization: Geico does not provide as many options for customizing coverage as other insurance.
#3 – State Farm: Best for Dependable Service
Pros
- Comprehensive Coverage for Teens: State Farm offers full coverage options designed for 16-year-olds. Read more in our full review on State Farm car insurance review.
- Steer Clear Discount Program: Teen drivers can qualify for discounts by completing State Farm’s safe driving program.
- Trusted Roadside Assistance: 16-year-old drivers get solid roadside help included in their plans.
Cons
- Lower Financial Rating: State Farm’s B rating might raise questions about financial security for teens.
- Basic App Features: The mobile app is missing some features that other companies offer, which tech-savvy teens might notice.
#4 – Nationwide: Best for Customer-Oriented Service
Pros
- Targeted Discounts: Nationwide offers discounts such as multi-policy and good student tailored for 16-year-olds.
- Deductible Reduction Program: Drivers can enjoy decreasing deductibles on teen insurance for remaining claim-free. Learn more in our Nationwide insurance review.
- Telematics-Based Discounts: Through Nationwide’s SmartRide program for 16-year-olds, it encourages safe driving with savings.
Cons
- Complex Policy Options: Teens may find the options for coverage to be a bit overwhelming.
- Primary Functions: Lot of functionality are missing from Nationwide's app when compared to others in the insurance industry.
#5 – American Family: Best for Significant Discounts
Pros
- Robust Discount Options: American Family offers discounts such as safe driving and low mileage for 16-year-olds.
- Volunteer Discount for Teens: Additional savings are given to 16-year-olds if they volunteer with community activities. Learn how in our AmFam insurance review.
- Good Student Discount: Teens with solid academic performance can benefit from reduced premiums.
Cons
- Limited Availability: Limited access for teen drivers because American Family is not available in all states.
- Customer Support Issues: Slower service may be experienced by 16-year-olds when contacting customer support.
#6 – Allstate: Best for Extensive Coverage Choices
Pros
- First Accident Forgiveness: Allstate offers a program that helps 16-year-olds avoid rate hikes after their initial accident. Read more in our Allstate car insurance review.
- Teen Smart Driver Program: Specially designed for 16-year-olds, this program helps new drivers develop safe driving skills.
- New Vehicle Replacement: Covers the cost of replacing a totaled new vehicle for 16-year-olds with eligible policies.
Cons
- Higher Monthly Costs: At $260/month, Allstate’s premiums are higher than many of its competitors.
- Complex Policy Structure: Navigating the extensive policy options may be challenging for families when adding 16-year-old drivers.
#7 – Farmers: Best for Adaptable Plans
Pros
- Discounts for Teen Drivers: Special discounts are available, such as for good grades and responsible driving. For more information, read our Farmers car insurance review.
- Forgiveness for First-Time Accidents: Farmers protects 16-year-olds from premium increases after their first collision.
- Personalized Service: Farmers is good at offering personalized customer support for 16-year-olds and their families.
Cons
- Costly Premiums: The premium cost of Farmer insurance is one of the pricier options for 16-year-olds.
- Confusing Policy Terms: Teen drivers may experience difficulty in understanding Farmers coverage options.
#8 – Liberty Mutual: Best for Complete Coverage Plans
Pros
- Wide Coverage Options: Liberty Mutual, including rental car and roadside assistance, offers a complete range of policies for 16-year-olds.
- Teen Discounts Available: Liberty Mutual offers discounts specifically for 16-year-olds, like good student and driver training savings.
- Accident Forgiveness for Teens: Protects 16-year-olds from increased premiums after their first accident. Unlock details in our car insurance review of Liberty Mutual.
Cons
- High Starting Rates: Liberty Mutual’s pricing is higher for 16-year-olds than some other providers, with premiums beginning at $325/month.
- Overwhelming Policy Options: The wide variety of coverage choices might confuse some 16-year-olds.
#9 – Progressive: Best for Innovative Features
Pros
- A+ Financial Strength: Progressive offers strong financial backing, ensuring stability for teen drivers. Take a look at our Progressive car insurance review.
- Multiple Discounts for Teens: Progressive provides various discounts tailored for 16-year-olds, like a good student and multi-policy savings.
- Handy Digital Tools: Progressive’s online platform for managing policies and tracking claims is a big plus for tech-savvy teens.
Cons
- Pricey Starting Rates: Progressive’s premiums are usually higher than those of other insurance companies.
- Complex Discount Structures: Discounts that Progressive offers might be hard for 16-year-olds to understand when they try to save the most money.
#10 – Travelers: Best for Strong Financial Support
Pros
- Great Financial Power: Travelers holds an A++ rating, making it trustworthy for 16-year-olds to expect consistent and stable payments. Discover more in our Travelers review.
- Good Coverage for Teens: Travelers has different coverages just for teen drivers, such as rental car coverage and roadside help.
- Discounts for Teen Drivers: Travelers offers good student savings and driver education incentives targeted at 16-year-olds.
Cons
- High Premium Costs: Among the providers, Travelers offers the most expensive rate for 16-year-olds at $362/month.
- Complex Customization Options: With the wide selection of policies, teen drivers might be overwhelmed in looking for more straightforward choices.
Monthly Car Insurance Rate Comparison for 16-Year-Old Drivers
It can be hard for 16-year-olds to find cheap car insurance because prices vary so much from one company to the next. This table lists the choices that won't break the bank while helping families with teen drivers determine the kind of car insurance you really need based on their budgets.
Insurance Company | Minimum Coverage | Full Coverage |
---|---|---|
$260 | $638 | |
$207 | $509 | |
$95 | $233 | |
$317 | $773 | |
$125 | $312 | |
$325 | $785 | |
$195 | $476 | |
$327 | $814 | |
$146 | $349 | |
$362 | $910 |
Erie leads the way with minimum monthly coverage starting at $95 and full coverage at $233, making it the most affordable choice. Geico and State Farm follow, with Geico offering minimum coverage at $125 and full at $312, while State Farm’s full coverage starts at $349.
True or False: Cranking the A/C will actually defrost your windows faster. ❄️ https://t.co/QkVwFTWUaw
— Erie Insurance (@erie_insurance) January 29, 2024
Insurance rates for 16-year-olds are typically higher due to their increased risk on the road, much like car insurance for high-risk drivers. Several factors, including limited driving experience and the type of vehicle driven, play a significant role in determining premiums for these young drivers.
- Inexperienced Drivers: 16-year-olds have limited driving records, resulting in greater accident potential and increased rates.
- Car Type: Performance or newer vehicles generally lead to higher insurance costs for young drivers.
- Crash Likelihood: Teenagers are statistically more likely to be involved in crashes, which drives up their insurance expenses.
- Geographic Area: Premiums may rise if the young driver lives in a region with high accident, crime, or traffic levels.
- Savings Opportunities: Programs like safe driver courses or good student reductions can help cut insurance costs for 16-year-olds.
By understanding the factors that influence insurance rates for 16-year-olds, families can find affordable coverage. Choosing discounts, the right vehicle, and safe driving habits can lower premiums, helping young drivers afford full coverage insurance.
Maximizing Discounts and Savings on Teen Car Insurance
By leveraging discounts and making strategic decisions, families can reduce the high cost of car insurance for 16-year-olds. These are the most common insurance discounts for teen drivers:
Insurance Company | Available Discount |
---|---|
Good Student Discount, Defensive Driving Course Discount, Bundling Discount | |
Good Student Discount, Defensive Driving Course Discount, Multi-Car Discount | |
Good Student Discount, Safe Driving Discount, Multi-Car Discount | |
Good Student Discount, Driver’s Education Course Discount, Vehicle Safety Features Discount | |
Good Student Discount, Defensive Driving Course Discount, New Car Discount | |
Good Student Discount, Safe Driving Discount, Multi-Car Discount | |
Good Student Discount, Driver’s Education Course Discount, Paperless Policy Discount | |
Good Student Discount, Defensive Driving Course Discount, Drive Safe & Save Discount | |
Good Student Discount, Defensive Driving Course Discount, Home and Auto Bundle Discount |
One effective way to lower insurance rates is by encouraging 16-year-olds to maintain good grades, as many providers offer discounts for academic performance.
Taking a driver’s education course can lower premiums, as insurers reward safe driving. Learn more about the cost benefits of taking a defensive driving course.
Opting for a vehicle with a strong safety rating and lower repair costs can also reduce rates. Increasing the deductible lowers monthly premiums, but it should remain affordable in case of an accident.
Best Car Insurance Companies for 16-Year-Old Drivers
Erie, Geico, and State Farm are the top three cheap car insurance companies for 16-year-olds, offering young drivers competitive rates and a range of coverage choices tailored specifically for them.
To get cheap car insurance for high-risk drivers like 16-year-olds, you need to plan ahead. Insurance costs can be cut down by a lot by getting discounts for good grades, bundling policies, or choosing bigger insurance deductibles.
Families can also look into usage-based insurance or cut back on extra coverages that aren't necessary without losing essential protection.
Finding cheap car insurance quotes is easy. Just enter your ZIP code into our free comparison tool below to instantly compare quotes near you.
Frequently Asked Questions
What is the cheapest insurance for a 16-year-old?
The cheapest insurance for a 16-year-old often comes from Erie, known for offering affordable premiums starting as low as $95 per month.
How much is car insurance for a 16-year-old girl in Oregon?
Car insurance for a 16-year-old girl in Oregon generally ranges from $200 to $500 per month, depending on the provider and coverage. Start comparing rates from the best and cheapest car insurance companies in Oregon for cheaper coverage.
Is $100 a month expensive for 16-year-old car insurance?
No, $100 a month is considered very affordable for 16-year-old car insurance, as most premiums tend to be higher for young drivers.
Is it illegal to drive without insurance for a 16-year-old?
Yes, it is illegal for a 16-year-old to drive without car insurance in all states, as it is mandatory to carry at least the minimum required coverage.
How much is insurance for a 16-year-old in California?
Car insurance for a 16-year-old in California usually costs between $300 and $700 per month, influenced by location and coverage needs. Get quotes from the best and cheapest car insurance companies in California to find affordable coverage near you.
Why do you think that 16-year-old drivers pay so much more for car insurance?
Teen drivers between 15 and 18 pay more for car insurance because they are considered high-risk due to their inexperience and higher likelihood of accidents.
How much does car insurance go down after one year with no claims for a 16-year-old?
Car insurance for a 16-year-old can drop by $20 to $100 per month after one year of no claims, depending on the provider and driving record.
How much is insurance for a 16-year-old in Florida?
For a 16-year-old in Florida, car insurance can range from $300 to $600 per month, depending on the coverage and insurance provider. Find the best and cheapest car insurance in Florida here.
How much is car insurance for a 16-year-old in Illinois?
Car insurance for a 16-year-old in Illinois ranges from $250 to $600 per month, depending on the level of coverage and provider.
How much is car insurance for a 16-year-old in Texas?
In Texas, car insurance for a 16-year-old typically costs between $250 and $550 per month, based on coverage and discounts.
How much is car insurance for a 16-year-old in Michigan?
In Michigan, car insurance for a 16-year-old is more expensive, typically ranging from $400 to $800 per month due to the state's no-fault insurance laws. Compare the best and cheapest car insurance in Michigan for affordable rates.
How much is insurance for a 16-year-old in AZ?
In Arizona, car insurance for a 16-year-old generally costs between $200 and $500 per month, depending on various factors like location and vehicle.
What is the lowest car insurance group?
The lowest car insurance group typically consists of smaller, less powerful vehicles, which are cheaper to insure due to their lower risk factors. Enter your ZIP code below to see what you'll pay for teen insurance near you.