On average in the U.S., insuring a newly licensed 16-year-old driver is very expensive – typically several hundred dollars per month. A 16-year-old pays approximately $380–$400 per month for full coverage auto insurance, and roughly $180–$190 per month for liability-only coverage. Annual costs generally range from $3,000 to $7,000+, depending on coverage type, location, gender, and vehicle.

Teen insurance rates gradually decrease as the driver gets older. A 17-year-old typically pays somewhat less, around $4,500 per year (~$380/month) for full coverage, while an 18-year-old may pay around $3,950 per year (~$330/month). Nationwide, teenagers between ages 16 and 19 pay the highest premiums of any age group, often 2–3 times more than a 30-year-old driver. Insurance providers view new teen drivers as high-risk, which is why adding a teen to an existing policy often more than doubles the family’s premium. Our analysis indicates that adding a 17-year-old can nearly double the parent’s total insurance costs.

It is important to note that minors cannot legally sign an insurance contract on their own. A 16- or 17-year-old must be included under a parent or guardian’s policy or have a parent co-sign the policy. Therefore, while teens can be insured drivers, the policyholder is almost always an adult.

Average Teen Insurance Costs (16–19 Years Old)

Age 16

Premiums for 16-year-olds are extremely high. Based on our analysis, full coverage averages between $4,200 and $7,600 per year (~$350–$640 per month). Liability-only coverage is significantly lower, ranging from $1,400 to $2,600 per year (~$120–$220 per month). Female 16-year-olds typically pay around 9% less than males for the same coverage due to statistically lower accident risk. This means teen boys can pay hundreds of dollars more annually than girls.

Age 17

Premiums decrease slightly at age 17. Full coverage typically costs $4,500–$7,000 per year (~$380–$580 per month), and liability-only averages around $2,100–$2,700 per year (~$175–$225 per month). The slight reduction reflects increasing driving experience and lower risk compared to 16-year-olds.

Age 18–19

Rates continue to fall for older teens. Full coverage insurance averages $3,950–$6,500 per year (~$330–$540 per month), while liability-only ranges between $1,500–$2,800 per year (~$125–$230 per month). Overall, teen drivers pay roughly 2–3 times more than the average adult driver. Our research shows that teen driver insurance costs can exceed 250% of the national average, largely due to their higher crash risk.

Why So Expensive for Teens? Key Factors

Several factors contribute to the high cost of teen car insurance:

1. Experience and Crash Risk

Teen drivers, especially 16-year-olds, have limited driving experience. Our data shows that 16-year-olds are about 1.5 times more likely to be involved in a crash than 18–19-year-olds. Statistically, drivers under 20 cause significantly more accidents per mile, leading insurers to charge higher rates to offset the elevated risk.

2. Adding Teens to Parent Policies

Most 16-year-olds are added to a parent’s existing insurance policy. Our analysis indicates that adding a 16-year-old usually increases the premium by 100% or more. If a teen has a separate policy, even with a parent co-signing, rates can be higher due to the lack of driving history. Separate teen policies are generally more expensive than including them on a family plan.

3. Coverage Level

Full coverage (liability + comprehensive/collision) costs significantly more than minimum liability coverage. Teens often need full coverage if they are driving a financed or valuable vehicle. For instance, a 16-year-old in some states may pay approximately $375 per month for full coverage versus $174 per month for liability-only insurance. Dropping collision coverage or increasing deductibles can reduce premiums, but most families maintain full coverage to protect their investment.

4. Vehicle Choice

The type of car a teen drives also affects premiums. Higher-powered or expensive vehicles cost more to insure. Teen drivers often drive older or smaller cars to keep insurance affordable. Choosing a safe, lower-powered, and affordable car is one of the most effective ways to reduce costs.

5. Location (State and Region)

Insurance costs vary significantly depending on state and region. Factors include state insurance laws, minimum coverage requirements, accident frequency, and regional traffic patterns. For example, some states are unusually inexpensive for teens, while others rank among the highest. Urban vs. rural locations, traffic density, and local driving conditions can also influence premiums.

6. Gender

Male teens typically pay more than females. Our research shows that insurers view male drivers as higher risk due to more frequent speeding, riskier driving behaviors, and higher accident rates. At age 16, males can pay $40–$50 more per month than females, translating to roughly $500 more per year. This gender gap narrows as teens get older.

7. Discounts and Grades

Many insurers provide discounts for academic performance or completion of safe driver programs. Teens with strong grades or driver education courses can save hundreds annually. Taking advantage of these discounts is critical for reducing otherwise steep premiums.

Cost by Age: 17- and 18-Year-Old Drivers

Insurance costs decrease as teens gain experience:

• 17 years old: Full coverage averages $4,500–$7,000 per year (~$380/month), liability-only roughly $2,100–$2,700/year (~$175–$225/month).
• 18 years old: Full coverage $3,950–$6,500/year (~$330–$540/month), liability-only $1,500–$2,800/year (~$125–$230/month).
• 19 years old: Full coverage $2,750–$5,700/year (~$230–$475/month), liability-only $1,400–$2,500/year (~$115–$210/month).

These are national averages, and actual rates vary based on vehicle, state, gender, and driving history. Young drivers pay dramatically more than older, experienced drivers.

16-Year-Olds: Boys vs. Girls

Male teens consistently pay more than female teens at age 16. This difference can exceed $500 annually. By 19, the gap largely disappears. Academic performance and clean driving records can help mitigate the gender-based cost difference.

Cheapest Insurance Options and Discounts

While no single insurer is the cheapest for every teen

• Military families often receive lower rates for teen drivers.
• Among general carriers, certain large insurance companies frequently offer competitive teen rates.
• Regional insurers in specific states can sometimes offer lower premiums than national carriers.

Ways to Reduce Premiums:

• Good Student Discounts: Up to 15–20% off for B-average or higher.
• Driver Education/Defensive Driving Courses: Completion can reduce costs.
• Safe Vehicle Discounts: Insuring a teen on a safe, older car lowers premiums.
• Multi-Policy Discounts: Bundling home and auto insurance can reduce rates.
• Higher Deductibles: Raising deductibles reduces premiums if families can handle higher out-of-pocket expenses.

Always compare quotes from multiple insurers, as rates vary based on driving history, location, vehicle, and discounts applied. Our data shows that adding a teen to an existing family policy is generally cheaper than establishing a separate teen-only policy.

State Differences (CA, NC, OH, PA, FL, etc.)

Location plays a critical role in teen insurance costs:

• California: Teens cannot be rated solely by age, so rates are closer to adult drivers in the same area. Full coverage may cost around $375/month, liability-only about $174/month.
• North Carolina: Among the cheapest states, full coverage may be $308/month for a 16-year-old.
• Florida: One of the most expensive states; 16-year-olds may pay over $10,000/year for full coverage.
• Ohio: Slightly above national average; premiums around $6,400/year.
• Pennsylvania: Higher rates; roughly $9,000/year for full coverage.

A teen in Florida or Pennsylvania may pay twice as much as one in North Carolina. Other expensive states include Louisiana and New Hampshire, while California, Massachusetts, and Hawaii tend to have lower teen rates.

Can a 17-Year-Old Insure a Car on Their Own?

Minors cannot legally enter an insurance contract. A 17-year-old must have a parent or guardian as the named policyholder or co-signer. Even if the teen buys a car independently, a parent usually must co-sign both the auto loan and the insurance policy. Separate teen policies provide limited benefits and are generally more expensive than adding the teen to a family policy.

Keeping the teen on a family plan:

• Takes advantage of multi-driver discounts
• Ensures continuous coverage
• Provides claims transparency
• Reduces overall cost

Tips to Lower Teen Insurance Costs

1. Stay on Family Policy: Cheapest option overall.
2. Maintain Good Grades: Many insurers offer “good student” discounts.
3. Driver’s Education: Completion of a state-approved course can reduce premiums.
4. Choose a Safe Vehicle: Older, lower-powered cars with strong safety ratings cost less.
5. Higher Deductibles: If affordable, raising deductibles lowers monthly premiums.
6. Shop Around: Compare at least 3–5 insurers to find the best rates.
7. Use Available Discounts: Good student, safe driving, driver training, and bundling discounts can save hundreds.
8. Keep a Clean Record: Minor violations can spike premiums significantly.

Combining these strategies can substantially reduce costs, but parents should still budget several thousand dollars annually for a 16-year-old driver.

Summary

In the United States, car insurance for a 16-year-old is very expensive, averaging $3,000 to $7,000+ per year or roughly $250–$600 per month, depending on coverage and location. Boys typically pay more than girls. Full coverage costs significantly more than minimum liability, and rates vary widely by state – from under $4,000/year in North Carolina to over $10,000/year in Florida.

A 17-year-old’s premium is slightly lower (≈$380/month), and by ages 18–19 it continues to decrease. Minors cannot hold policies on their own, so teens are usually added to parental policies, often doubling family premiums. Parents can reduce costs through discounts, vehicle choice, driver education, multi-policy bundling, and competitive shopping. Even with these strategies, teen drivers will pay hundreds of dollars more per month than older drivers.