How Much Is Car Insurance For An Underage 16 Year Old?

By Mike Anderson Posted in Car Insurance News

National Average Car Insurance Premium

The national average car insurance yearly premium for a sixteen-year-old driver is between $2,500 and $3,000 or about $250 a month. Teens, by far, pay the highest car insurance premiums of any age group. This can be attributed to the risk level of teen drivers. On average sixteen-year-old drivers are involved in three times as many crashes as 25 to 65 year olds.

This is a huge risk to assume on the insurance companies’ behalf, so they increase the premiums to reflect that added risk. According to the Insurance Institute for Highway Safety, for every million miles driven sixteen year olds were in an average of 35 accidents compared to only 8 accidents per million miles for 20 to 24 year olds.

High Risk Auto Insurance Premium

This higher risk translates into higher insurance premiums for parents of teen drivers if they are adding them to their policy, regardless of the parents’ driving record. There are several ways to reduce the overall cost of the policy when adding a teen driver. One way is to have a multiple-car policy. The more cars insured under the same policy the cheaper the premiums would be for each additional car.

Insuring recreational vehicles and even watercraft with a participating insurance company will reduce the cost. Many insurance companies offer a discount if you purchase your homeowner’s and life insurance policies through them. Not all companies offer a broad range of insurance policies but those that do will typically offer a discount with each additional policy purchased.

Some companies will offer a “good student” discount for students who maintain an “A” average. While this initial discount will not be available the first time the student signs on with the insurance company, once the student has proven their grade status they will be eligible for the discount. Maintaining a good driving record will also help reduce the cost of insuring a teen driver. Some companies will even apply a discount to the insurance policy if the teen driver attends driving classes and seminars offered through the insurance company and driving school. These classes usually specialize in increasing driving skills and awareness.

Related posts:

  1. Why Is Car Insurance So High For Teenagers?
  2. What’s A Good Price For Student Car Insurance?
  3. How Does A Good Student Discount Work For Auto Insurance?
  4. Who Offers A Good Student Driver Discount?
  5. What Is The Cheapest Kind Of Car Insurance?

Leave a Reply