Question of the Day: What's the average annual car insurance rates for a 16 year-old driver added to an existing policy?
What do you get when you add a 16 year-old driver to your car insurance policy? A higher premium and a whole lot of gray hair! [Courtesy of Chat GPT]
Answer: $4,105
Questions:
- Why do you think that 16 year olds have such high car insurance premiums?
- What other factors, other than age, do you think that car insurance companies take into account when setting premiums?
- If you currently drive and have your own insurance or are on your parent's/guardian's policy, do you know what the cost is?
Behind the numbers (PolicyGenius):
We found that car insurance for 16-year-olds costs an average of $342 per month ($4,105 per year) if you add a 16-year-old to an existing full-coverage policy, or $565 per month ($6,779 per year) for standalone coverage.
Car insurance costs 16-year-olds much more than most older drivers, and costs male drivers who join an existing policy $49 per month more than female drivers. But 16-year-olds of any gender (and their parents) can find cheaper car insurance by shopping around and getting quotes from multiple companies.
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Looking for more bellringers...there's nearly 700 in the NGPF Question of the Day library!
About the Author
Tim Ranzetta
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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