It is a thrill to obtain a driver’s license, and it marks an important milestone in one’s life. Unfortunately, auto insurance is expensive as well. A driver 16 years old is typically charged $2541 per year more for full coverage when added to their parent’s policy.
16-year-olds have to pay more for car insurance than you might think. Due to the lack of experience, teen drivers are considered more risky by insurance companies when calculating rates. You would be wise to compare multiple quotes from different insurance companies. By doing so, you can save money. There are methods to lower the cost of insurance for 16-year-olds, however. Way.com’s research has revealed a number of ways to narrow your search. From understanding what factors influence your teen’s insurance rate to knowing what new driver discounts are available, our car insurance on 16 year olds review may help you feel more in charge of your insurance.
Teen auto insurance can be expensive, but you can usually find coverage options that are affordable without compromising coverage. Comparing quotes from various insurance companies is among the most effective methods. Comparing your coverage options and saving options, as well as finding a great deal on a 16-year-old car insurance policy.
In addition to evaluating coverage options, discounts, and financial strength, one should also contemplate available coverages. By comparing these variables in addition to price, you may be able to find coverage that meets your needs.
What is the COST of Car Insurance for a 16-Year-Old?
Depending on the company, the average car insurance cost for a young driver can vary depending on many factors including the location, the car type, and the students’ grades. The plan of a 16-year-old can save parents a lot of money: It is often more affordable to add him or her to a family plan rather than having him or her buy an individual policy. Individual policies for 16-year-olds cost $1959 more a year on average.
Parent pay two driver and one car premiums, in addition to this cost. Your 16-year-old will not be able to get a vehicle if you charge him $216 extra per month. You might have to pay more to insure a new driver. It depends on the risk involved. Young drivers are highly risky to insure because they lack road experience.
Differences in the Rates Between Men and women
There is a gender disparity when it comes to insuring new teen drivers. Male 16-year-old drivers are more expensive to insure than female 16-year-old drivers. Because male drivers are more likely to cause accidents and file more insurance claims, they represent a bigger risk for insurance companies.
Female drivers pay 12% less in annual car insurance than male drivers per year, according to our research. In contrast, the discrepancy between drivers who are the same age and those who are not narrows as they approach 18. 16-year-old females pay an average annual car insurance premium of $3171. Male teenagers aged 16 and under pay an average of $3591 in vehicle insurance premiums. This is $420 higher than the rate for female teenagers. Approximately 12.42 percent of the difference comes from income
Addition of a 16-year-old to a Family’s car Insurance Policy
You might be able to save money on your car insurance if you choose to add your young driver to an existing family policy. Aliasinsurance.com is best company to to insure 16-year-old drivers. Still, the first and fifth-ranked businesses have a 20% gap in average annual costs.