There are many different factors that affect How much is car insurance for a 16 year old costs, but age and gender are two of the most influential determinants. While your car’s features also play a role in determining your premiums, the biggest factor in how much you pay will be your age and gender when you first buy car insurance. If you’re looking to get an idea of how much car insurance will cost you, here’s what you need to know about how each can impact the cost of your coverage.
General Considerations
Car insurance costs are calculated based on risk factors, such as driving experience, age, number of speeding violations and at-fault accidents. Coverage amounts also factor into the cost. Many states allow teens to enroll in limited or restricted learner’s permits or provisional licenses that require an adult driver over the age of 25 to be in the front passenger seat at all times.
Minimum Age of Car Insurance Policies
In order to answer this question, we need to know what the driver’s age is and whether or not they have a good driving record. Under New York State law, drivers of any age are only eligible for minimum coverage in their first twelve months of having their license unless there are specific circumstances requiring more. If you’re 16 years old and have had your license less than 12 months then your minimum coverage will be liability.
Types of Coverage
There are five types of coverage that car owners should consider when purchasing auto insurance: liability, property damage, uninsured/underinsured motorist, collision and comprehensive. You can choose your own amount for each of these types or rely on the state’s suggested minimums.
Free Quotes from Insurers
When it comes to new drivers, most parents want their teen driver to have the lowest rates possible. The best way to do this is by raising their limits. All of the providers on our site offer discounts and even more than one discount for teens that are good students, live with their parents, take a driver education course and install state-of-the-art safety features like anti-lock brakes and airbags.
Factors Affecting Rates
One of the most important factors that affect car insurance rates is your age. Young drivers pay significantly more because they have less experience driving and statistically, more accidents occur with younger drivers on the road. For example, if you are in between 16-20 years old and it’s your first time buying coverage, you could see rates between $3,000-$4,000 per year. Rates can fluctuate even further depending on how many speeding tickets or accidents you have had in the past few years.
Discounts Available
Discounts vary depending on your state and insurer, but good student discounts and other various age-related discounts are often available. Discounts range from 10% to 20%.
Tips to Reduce Your Premium Cost
With car insurance premiums on the rise, now more than ever it’s important to make sure you’re getting the best possible rate. Here are some ways you can do that:
- Research competitive quotes from at least three insurers to see what coverage options and prices they offer. Check out their websites and chat with representatives by phone.
- Compare deductibles – higher deductibles mean lower premiums, but they also mean higher out-of-pocket costs if there’s an accident.