How Much is Car Insurance for a 16 Year Old?
How Much is Car Insurance for a 16 Year Old?
How much is car insurance for a 16 year old? Exist any tips you need to use to lower car insurance rates? Today, we're explaining everything you need to learn about the cost of auto insurance for teenagers.
Auto Insurance is Expensive for Teenagers Because They Have No Driving Experience
Auto insurance rates are higher for teenagers simply because they lack driving experience.Insurance companies always depend on statistics to set insurance rates. Statistics reveal that teenagers are much more likely to get into an accident than someone with 5, 10, or 20 years of driving experience.
Needless to say, that doesn't mean you can't get car insurance as a 16 year old. Actually, insurance rates might not be as high as you think.
Sure, you'll pay a fortune for insurance if you're trying to insure a brand new SUV.However, many teenagers drive older cars. On an older car, you may be able to significantly lower insurance costs by dropping comprehensive and collision insurance.
16 year old drivers can also conserve money by insuring a car under their parents'policy.
Overall, car insurance for a 16 year old is more costly than a great many other kinds of car insurance – but it's still a manageable expense. So long as spent time shopping to discover the best deal, you should have no trouble getting a car insurance policy that fits your unique needs.
Why is Car Insurance Higher for Teenagers?
In most cases, teenagers are worse drivers than older, more capable people. Yes, it is a stereotype – but the whole auto insurance industry is made on stereotypes.
Insurance companies look at national accident statistics that show a clear correlation between teenage drivers and accidents. In the United States, more than two thirds of all car accidents on highways are brought on by teenage drivers every year. This statistic remains surprisingly consistent within the years.
Ultimately, a 16 year old just doesn't have exactly the same number of experience being an older driver. Some 16 year old drivers will go their entire lives without being within an accident. Others may cause 5 serious accidents before they turn 20. Like all insurance plans, insurance companies set rates based on current statistics.
Statistics also show that teenage males cause more accidents than teenage females.
The Average Annual Insurance Cost for a 16 Year Old is $180
The typical 16 year old driver in the United States will probably pay about $180 each year in insurance, assuming they meet the following qualifications:
16 years of age
No accidents or violations
Driving the parents'vehicle
On the parents'insurance coverage
16 year old females can pay less than 16 year old males. Typically, a female will pay about $160 annually while a man will pay $200 per year, averaging out to around $180.
Obviously, this number comes up significantly if you begin driving your own personal car on your own insurance policy. The amount will also immediately rise if you have an incident or violation.
In order to get the very best insurance rates for a 16 year old, it is additionally vital to stay in your parents'policy as long as possible. Most states allow this until age 21, however some states enhance the limit until 26. Some states also have limits linked to college, letting you stick to a policy at 26 provided you're still in college.
Do Rates Drop with Age?
Broadly speaking, insurance rates drop with age.
However, this isn't necessarily true when you're 16. Typically, insurance rates will rise when you turn 18 because you're more likely to do more driving. This is actually the age when many kids move out from the house.
Furthermore, you'll eventually move off your parents'policy – like when you leave the home or graduate from college. When this occurs, and you need to get your own policy, then you can expect rates to significantly rise.
Conclusion: How Much Should You Buy Car Insurance at 16 Years Old?
Simply how much is car insurance for a 16 year old? Rates vary round the world. Generally speaking, 16 year old drivers can pay higher car insurance rates than older, more capable drivers. However, many drivers discover the rates to be manageable – especially once they take some time to compare auto insurance quotes from multiple providers.
Furthermore, it's always cheaper to stay on your parents'policy and drive your parents'vehicle. You're allowed to achieve this generally in most states until age 21, while some states extend the limit to age 26. If you're on your parents'policy, you may pay just $150 to $250 per year in added insurance expenses (beyond the normal insurance plan).
In the event that you absolutely must have your own insurance policy, then consider driving an older car and dropping collision and comprehensive coverage. By maintaining liability coverage, you are able to legally drive on the highway while avoiding high insurance costs.
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