Driving a car is like a dream come true when you’re at your legal driving age. Driving isn’t an easy task, but you learn as you make mistakes. And ensuring the safety of your vehicle is equally important as driving safely. There are car insurance companies.
Car insurance companies charge you a huge amount, especially for a 16-year-old male or female to pay that much amount. But there are still car insurers that can be a good fit for your pockets.
So, many times, this question always arises; how much does car insurance cost a 16-year-old male/female per month?
There is no definitive answer to this question since rates vary depending on several factors, including gender, age, and the policyholder’s driving record. Also, the manufacturing model of the vehicle can affect insurance prices.
Generally speaking, car insurance for a 16-year-old male/female will be more expensive than for an older driver. It is important to compare rates from different insurers to find the best deal.
Average Cost Of Car Insurance For A Teenage Driver Per Month
On average, car insurance for a 16-year-old boy or a girl costs around $278 per month and $3,343 per annum. A 16-year-old driver is considered high risk, so they must pay more than the older drivers. They’re fresh learners and most likely to file a claim.
Because the cost of insurance for 16-year-olds is so high, it’s critical to get many quotations before purchasing a policy.
USAA, Travelers, and Progressive are some of the top vehicle insurance providers for a 16-year-old boy or girl. When calculating the average cost, comparing quotations is more significant in certain states than others.
A 16-year-old buying their insurance plan, when added to their parent’s existing insurance policy, can effectively vary in their favor. When a 16-year-old is added to the existing policy, it will raise the rate from 140% to 160%. But the premium will still be cost-effective for a teenager rather than having their policy plan.
Cheapest Car Insurance For A 16-Year-Old Driver
Geico and State Farm are the cheapest safety insurance providers as far as feasible. For a 16-year-old, the following insurance agencies are the most affordable.
|Insurance Company||Avg. Six-Month Premium||Avg. Monthly Rate|
The above is the cheapest car insurance firm for 16-year-old teenagers. Nationwide comes out as the most affordable among the companies mentioned above, whereas State farm is the second cheapest.
It’s always wise to compare prices and then for the best deal.
How Does Gender Influence Insurance Premiums For 16-Year-Olds?
Car insurers make a variation in gender for insuring teenage drivers. Most likely, a 16-year-old male is charged more for insurance than an adolescent female of the same age.
This exception is because of the higher accidental rate among 16-year-old male drivers, and more accidents mean more insurance policy claims and more risk to insurance firms.
According to surveys, a 16-year-old male is charged a 13% higher premium than female drivers per annum. Moreover, it has decreased from 18% to 13% in the past years.
Avg. Annual Car Insurance Rates FOR Males And Females
|16-YEAR-OLD FEMALE (AVG. ANNUAL PREMIUM)||16-YEAR-OLD MALE (AVG. ANNUAL PREMIUM)|
Why Is Car Insurance So Expensive For A 16-Year-Old?
Vehicle insurance is significantly more expensive for 16-year-old drivers since they are more likely to be involved in accidents than more experienced drivers.
According to the Centers for Disease Control and Prevention (CDC), 16-year-old drivers are several times more likely than other drivers to be involved in a fatal accident.
Prices for 16-year-olds are also higher because insurance firms don’t have any existing data to base their policy plans on. Car insurance is dependent on your previous driving record. But you being a fresh driver, companies don’t have any history to evaluate a rate.
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This results in more significant expenditures for every teenage driver, regardless of how cautious they are.
How Can A 16-Year-Old Teen Save Money On Car Insurance?
Although vehicle insurance premiums for 16-year-old drivers are pretty high, there are ways to reduce your monthly price. Adding one of these young drivers to a family plan is an excellent option to explore. It may save you approximately $500 per year on average, irrespective of whether you choose the least priced option or another type of approach.
Shop Around At Multiple Insurance Companies
Each insurance company has different rates, and it is especially significant for teenage boys or girls. It is known that choosing one guarantor over another might save a considerable amount for a whole year.
Meanwhile, the cheapest insurance policies for 16-year-old drivers will vary depending on where you live. Gather documents from a few insurers to ensure you’re paying as little as possible.
Find Discounts For 16-Year-Old Drivers.
To balance the high cost of protection for 16-year-olds, many insurance companies offer a variety of limits tailored specifically for young drivers. Here are a few examples of standard derivations to be aware of.
- Good Grades
You can experience a fall in rates if you’re a full-time high school or undergrad with a specified GPA (often a “B”/3.0 or greater).
- Driving Tracker
Many insurance companies will provide you with a telematics driving tracker, which will lower your premiums once you’ve demonstrated that you drive safely. It might, for example, illustrate that you don’t start or stop suddenly or that you steer out and around.
These may be plugged into your vehicle’s auxiliary port or used with a flexible application to track your habits.
- Driving Class
16-year-old drivers are likely to have just completed their driver’s education. Still, many jurisdictions enable you to complete a driver’s education course to significantly lower your vehicle insurance premiums – the reduction in New York state is 10%.
- Students Away From Home
This discount is more common among understudies than among 16-year-old high schoolers. Still, if you’re travelling more than 100 miles from home for school (such as life experience school) and don’t have a car, you’ll most likely qualify for a reduction in your protection rates.
Most insurers will discount your vehicle insurance if you pay for it all at once rather than in monthly installments.
Monitor Your Teen Driver To Ensure A Clean Driving Record
Maintaining a clean driving record for your young driver, like with all drivers, is a fantastic method to keep vehicle insurance prices low. On the other hand, accidents and fines will significantly raise your 16-year-vehicle insurance premiums.
It’s crucial to keep an eye on your young driver while they’re between 16 and 17 when crashes are statistically more common.
Drop Comprehensive And Collision Coverage
The easiest option for children to reduce their insurance costs is to reduce the amount of coverage they pay for. Whole and damage coverage, which pays for your own car’s upkeep, are the most commonly overlooked aspects of vehicle protection.
If your car is damaged in a collision and no other party is to blame, insurance will cover you. Extensive inclusion compensates for damage caused by a different impact, such as vandalism or robbery.
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Except if you have a car advance or rent, the two features are optional. When your car is older and less valuable, it is often better to reduce far-reaching and effective inclusion.
This is because the most extreme possible inclusion payment – the cost of replacing your car is typically not the same as the cost of inclusion. However, if you can fix or replace your vehicle without these extras, you should probably skip them.
Car Choices Matter When Insuring A 16-Year-Old Driver.
Car insurance prices are influenced by the sort of vehicle a teenager drives. For example, A teenager with an off-road truck is more likely to have higher insurance prices than a modest, affordable sedan.
It’s a general rule that a car or vehicle with a higher MSRP (e.g. luxury cars or sports cars) will have a higher insurance amount. If the vehicle is totaled, companies will have to pay a more significant amount.
So if you’re searching for a vehicle for your teenager, you should go for a sedan or a used car to minimize the insurance rate.
Add Your Teenager To An Existing Car Insurance Policy.
When your 16-year-old boy or a girl gets her driver’s license, you are often required to add them to your auto insurance. It’s required by law in a few regions, and many insurance companies also need it. Regardless of the requirement, ensuring that your automobile insurance protects everyone is a wise strategy.
Once a teenager has their driver’s license, you usually need to add them to a family plan. If the 16-year-old boy or girl hasn’t finished their permit exam yet, they won’t need to be registered on your project.
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A 16-year-old can reduce his premium expense by up to 45% by getting added to an existing premium insurance plan. It is better to save your precious savings than an individual car insurance plan.
Once your adolescent receives their driver’s license, they’ll require insurance to drive any car you own or decide to buy for them.
Prices for 16-year-old drivers can be rather costly, but there are methods to control the high expenses by searching for the cheapest deals and looking for any discounts (excellent student, for example).
If your teenage driver is a 16-year-old guy, you can expect to spend 17 percent more on insurance than if he is a 16-year-old girl.
Another approach to save money is to include your teen on your family’s vehicle insurance policy rather than independently insuring them. This can save you up to 50% on your prices.
Are you prepared to get insurance coverage for a 16-year-old driver? Compare vehicle insurance rates for a 16-year-old immediately to find the best vehicle insurance for a 16-year-old.