How Much Is Car Insurance For A 16 Year Old?

The price of car insurance varies between states and insurance carriers. Parents often wonder "how much is car insurance for a 16 year old"? Insurance prices, that this point, vary even more drastically. Insurance companies, even if you have been with them for years, completely disregard your history when it comes to a teen policy.

Insurance companies look strictly at the teen in question when it comes to their rates. There are a few things they take into consideration. One of which is not their credit, like they do with adults. After all, most young teenagers do not yet have credit established.

There are; however, three main concerns when it comes to teenage insurance policies: driving record, gender, and type of car. Right off the bat your 16 year old will not have a driving record, but they will as soon as they start driving. Insurance premiums will be dropped, over 6-month and 1-year periods if the teen continues to drive with any blemishes on their driving record. The safer they drive, the less they will pay as they get older.

Gender is another important factor. Unfortunately, for the parents of teenage boys, you can expect to pay more for insurance than you would for a teenage girl. There are numerous reasons for this, but the main reason being that statistics say that teenage boys are a greater risk and cause of vehicular damage than teenage girls.

Finally, insurance companies look at what type of car your teenager will be driving; just as they do with adults. Take, for example, a sports car versus a sedan. Which do you think would be cheaper; the sedan, of course, because it is a more practical car. Take this into consideration when purchasing a car for your teenager.

Some insurance companies offer different reward programs like good grade discounts. This will vary based on insurance company, but here is a good example. Insurance company A is offering a 10% discount for students with a 3.8 GPA or higher; whereas insurance company B is offering a 7.5% discount for students with a 3.0 GPA or higher. It is, obviously, up to you as to which is better for your budget.

All insurance companies vary, just a bit, in what they offer and the quotes they give you. Each has different resources available to them, which makes researching and spending time with them all worth it to you, in the long run. Like the grade discount, not all companies offer this; however, if your student has a high GPA, it is worth your time to find one that does.