The Average Cost of Car Insurance for a 16 Year Old

Car Insurance is a necessary and mandatory requirement for all drivers. The cost of insurance is not a fixed rate; it changes based on where you live, your age, driving history and even grades. The youngest drivers on the road, 16-year-olds, have the largest financial burden as far as insurance goes. While the actual price can differ from teenager to teenager, the average cost of car insurance for a 16-year-old is somewhere between $200 and $300 a month.

  1. Determinants of Car Insurance Rates

    • Each car insurance rate is determined by many factors, including marital status, gender, prior accident claims, where you live, previous driving violations, your vehicle type, your occupation, how many miles you drive a year, distance from your work place and even your credit rating. One of the most significant determinants is age, a major reason why insurance for young drivers is so high.

    Rate Differences for 16-Year-Olds

    • In most states, teens can get their licenses for the first time at the age of 16, or somewhere very near that age. They are the most inexperienced drivers on the road, and also have no insurance history to help dictate a proper rate. Because insurance companies are therefore "blindly" insuring these new drivers, their rates tend to be at least two times higher than national averages.

    Gender

    • Because of trends in accident claims and violations, girls and boys actually have different rates for their auto insurance. These trends show that male drivers, especially between the ages of 16 and 25, drive more than females of the same age. They are more prone to taking risks while driving and are more likely to drive in poor conditions like bad weather, when they are tired or after they have been drinking. There is also proof that younger males drive faster on average than females. Before a driving record has been established, males tend to pay higher insurance rates than females.

    How to Bring Cost Down

    • Having good grades can actually lower a 16-year-old's auto-insurance rate. In most cases, if they can show proof that they maintain at least a B average, their premium can be reduced by 5 percent to 10 percent. Of course, this only applies in certain states and for certain insurance companies.

      The cost of insuring a teen can also be brought down by having them on the same insurance policy as their parents, if their parents have a manageable rate to begin with.

      Choice of car can also play a role in reducing the rate. More practical, safe and reliable cars are able to be insured for a lower rate, and this is especially true when it is being insured for a new driver.

    In Conclusion

    • Showing proof that the teen driver took a driver education course at a recognized driving school can also lower the insurance rate, as it will indicate some type of positive driving history.

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