Cheap Car Insurance for 16-Year-Olds
- The cheapest insurance for 16-year-olds is from GEICO, USAA and Progressive
- Sixteen-year-old drivers pay an average of $5,554 annually for car insurance
- The best ways for teens to save are to stay on a parent's policy and avoid accidents and tickets
How much does car insurance cost for a 16-year-old?
The average 16-year-old driver in 2026 pays $2,777 for a six-month policy on their parents' car insurance plan (or $463 per month).[1] As teens are among the most expensive demographic to insure, it comes at no surprise that this rate is 156% over the national average of $1,084 across all ages. GEICO offers the lowest rates for teen drivers.Â
Car insurance rates depend on risk, and 16-year-old drivers are considered of the utmost risk due to inexperience. This leads to higher premiums, but savings are possible by comparing quotes from top insurers. Factors like age, gender, location, and vehicle type also impact rates, so finding the best deal is key. Let’s explore the best insurance options for 16-year olds and tips to lower your rate.
Cheapest car insurance companies for 16-year-olds
USAA
For military families, USAA offers competitive rates for teens, with average monthly rates at $382.
Progressive
According to our data, Nationwide's average monthly rate for a 16-year old is $386.
Updating data...
| Company | Avg. Monthly Premium | Avg. 6 Mo. Premium |
|---|---|---|
| Allstate | $587 | $3,523 |
| Farmers | $390 | $2,340 |
| GEICO | $371 | $2,224 |
| Nationwide | $467 | $2,801 |
| Progressive | $386 | $2,318 |
| State Farm | $539 | $3,236 |
| USAA | $382 | $2,293 |
Source: The Zebra
*Please note that the rates in this article reflect a teen on a parents' auto insurance policy
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Adding a teen to a parents' policy is most often your best bet when it comes to premium adffordability. Make no mistake, even this addition will cause your car insurance rates to rise dramatically— but it will always be less than what a teen pays on their own.
Find the cheapest car insurance for your 16-year old.
What is the cheapest car insurance for 16-year olds in my state?
Where you live significantly impacts your teen driver's insurance rates. Since insurance is state-regulated and ZIP-code specific, costs vary based on local risk factors.
States with high bodily injury claims or no-fault laws, like Michigan and Florida, tend to have higher premiums. In contrast, less populated states with fewer claims, such as Ohio, generally have lower rates. More drivers mean a higher likelihood of collisions, which insurers factor into pricing.
Updating data...
| Company | Avg. Monthly Premium | Avg. 6 Mo. Premium |
|---|---|---|
| Farmers | $468 | $2,807 |
| Allstate | $346 | $2,074 |
| Travelers | $262 | $1,572 |
| Progressive | $367 | $2,204 |
| State Farm | $421 | $2,527 |
| USAA | $265 | $1,590 |
| Nationwide | $307 | $1,843 |
| GEICO | $363 | $2,180 |
Source: The Zebra
Don't forget about regional carriers
While the table above shows insurers available across the country, don’t overlook smaller regional providers. They often offer competitive rates, comparable coverage, and helpful discounts.
Fetching your estimate
Here at The Zebra, we make it easy for you to find the right coverage—at the right price. We compare top companies so you can find what works for you.
We can also help you:
Other factors affecting teen car insurance rates
While age is the most heavily weighted factor for a 16-year old insurance applicant, insurance companies will also consider gender, coverage level, and location.
Young male drivers are more likely to get citations or be in accidents, making them more expensive to insure. As a result, teen boys tend to pay more in insurance premiums than teen girls. However, this gap narrows with age, and some states prohibit gender-based pricing.
Updating data...
| Company | Male | Female |
|---|---|---|
| Allstate | $3,735 | $3,324 |
| State Farm | $3,563 | $2,916 |
| Nationwide | $2,757 | $2,839 |
| Farmers | $2,403 | $2,288 |
| Progressive | $2,384 | $2,255 |
| USAA | $2,383 | $2,208 |
| GEICO | $2,366 | $2,087 |
| Travelers | $2,208 | $2,029 |
Source: The Zebra
Similarly, coverage level and limits will have a significant impact on rates. You may be tempted to choose minimum coverage in order to save, but we don't recommend this. If your teen does get into an accident, you'll have to pay for damages out-of-pocket. In fact, our licensed insurance advisor, Amber, recommends raising limits:
"Raising limits is important for young drivers— my son is turning 16 and will be driving soon. I'm going to heighten my limits because if he's in an accident, I will be the one paying for it. So that's something to take into consideration as well."
Find car insurance for 16 year-olds today!
Which cars have the lowest insurance rates for 16-year-old drivers?
The type of car your teen drives will help to dictate their car insurance rates. High-MSRP vehicles, like sports cars and luxury models, cost more to insure due to higher replacement costs. Off-road trucks also tend to have higher premiums. For lower rates, choose a modest sedan or a used car. If full coverage is required—including comprehensive, collision, and uninsured motorist protection—expect higher costs.
How to save on car insurance as a 16-year-old driver
The price tag on teen car insurance is steep, so finding ways to lower premiums is paramount to saving money. Luckily, there are a few ways you can save on your 16-year old's car insurance policy:
Good student discount
If your teens earns a 3.0 GPA or above, they could qualify for a good student discount
Defensive driving discount
Your teen could take an accredited defensive driving course to unlock this discount opportunity
Keep a clean driving record
A clean record keeps premiums low, while accidents and violations further increase a teen’s already high rates.
Keep your 16-year old on the family policy
This is more cost-effective, and most insurers require everyone of driving age in the household to be listed or excluded on the policy, anyway.
Compare quotes with several insurance companies
Some companies may offer you a lower rate than others. Compare quotes with The Zebra to find the best value for your 16-year old driver.Â
The bottom line: Despite high rates, safety is the highest concern
We know these costs can be overwhelming, but nothing matters more than your new driver’s safety. An excellent cost-saving opportunity that also offers peace of mind is a driver education course— not only will your 16-year old build safe driving habits but this can also unlock valuable insurance discounts.Â
Frequently asked questions: Car insurance for 16-year olds
Data Methodology. The Zebra’s Dynamic Insurance Rating Tool
Find affordable auto insurance coverage today!
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.