How Much Does Auto Insurance Cost for a 16-Year-Old in New York State?

Last Updated on September 30, 2020

Nothing is more exciting for a 16-year-old than getting their driver’s license and beginning to feel more independent. Nothing is more stressful for a parent of 16-year-old than their child getting their driver’s license and having the additional cost of car insurance for that child.

National Average vs. New York Average

On average, the cost of insuring a 16-year-old in the USA is about $7,000 for full coverage on their own policy. In the state of New York, this cost is $5,089 for a female and $6,522 for a male. This coverage is their own policy that entails comprehensive and collision coverage with liability limits of 100/300/100.

For the state minimum coverage, a 16-year-old girl will cost $2,256 on average for their own policy, where a boy will cost $2,722 on average.

Males are more expensive for full coverage at about $920. This is because males tend to be more reckless and distracted when driving. Females tend to be more responsible and mature when driving. 43% of female drivers were involved in an auto accident in 2015, where 57% of teenage males were involved in an auto accident in 2015. This explains why males are more expensive to insure.

Expect the car insurance bill to rise by 118% when adding a teenage driver who is 16.

Why is Vehicle Insurance for a 16-Year-Old More Expensive?

Research shows teenage drivers are statistically more likely to get into car accidents. Teenage drivers receive a higher number of speeding tickets, and 2% of accidents with teenage drivers involved alcohol impairment. A teenage driver was present in 27% of all car accidents in New York in 2015. Vehicle accidents are the top killers of U.S. teens. Younger drivers are at high-risk of filing a claim. It is understandable why insurance companies would have higher rates for 16-year-old drivers.

Habitual Errors for 16-year-old Drivers

There are many errors that young drivers make. As mentioned earlier, teenage drivers may drive while intoxicated. Their attention is quickly taken by cell phones, people, the radio, and many other distractions.

Another habitual error for young drivers is tunnel vision. When a driver has tunnel vision, they focus on the road in front of them but not on the things around them like cars pulling out into the street or road signs. These drivers take time to develop their scanning ability. This ability will help them become a defensive driver.

Finally, speeding is often a chronic error that causes many accidents. Fast cars and slow reflexes are not a good mix. Whether intentional or not, speeding is a lead cause of accidents among 16-year-old drivers.

Fewer Discounts

Another reason vehicle insurance is more expensive for a 16-year-old is fewer discounts available to them. Typical discounts added to policies include multiple drivers, multiple vehicles, accident forgiveness, and safe driver discounts. When a 16-year-old begins a new policy, they won’t be eligible for these discounts

How to Save on Car Insurance for 16-year-olds

There are three ways to save money on car insurance for a 16-year-old in New York. First, they can be added to a parent’s policy. Second, they can share a car, and finally, they can qualify for discounts offered through the insurance company.

Add Your 16-year-old to Parent Policy

Instead of 16-year-olds having their own insurance policy, it is less expensive to add them to an existing policy. Many parents find it is easier and cheaper to add their teenage drivers to an already existing policy for several reasons.

Insurance companies determine rates based on experience and driving records. A 16-year-old won’t have either of these, but parents will making it cheaper to add a teenage driver instead of getting their own policy.

When a 16-year-old is added to a preexisting parent policy, it will cost an average of $4,107/year for full coverage in the state of New York. For state minimum coverage, it will cost, on average, $1,594 for a parent policy with a female teen added. A parent policy with a 16-year-old male added will cost $1,767.

As you can see, it is far cheaper to add your 16-year-old to your policy than it is for them to have their own.

Sharing a Car

Many teenagers look forward to having their own car when they turn 16; however, it would be cheaper to share with their parents or with another sibling. Fewer cars to insure means a less expensive policy. The 16-year-old can be added as a second driver on a vehicle instead of the primary driver, lowering insurance rates.

Use Common Teen Driver Discounts

When looking to save money on car insurance for a 16-year-old, look for available discounts. Many insurance companies offer discounts that include multi-vehicle, loyalty, and multi-policy. Some companies even provide other discounts for young drivers, including driver education discount, good student, and a parent-teen driving contract discount.

Driver’s Education

Driver’s education is required in the state of New York for new drivers. This course must be at least five hours. Some insurance companies will give you a percentage discount if you complete this course.

Good Student

A good student discount is given by several insurance companies when a student sustains a “B” average in school. This discount could be as high as 15% and is suitable for students through college.

Parent-Teen Driving Contract

Parents and teens can create a contract that lists the rules the teen must follow to drive independently. These rules may consist of a number of hours allowed to drive, number of miles, and passengers. Once both parents and teens sign the contract, it can be shared with the insurance company for a discount. Be sure to ask the insurance company what they would like included in the contract.

Final Word on Auto Insurance for 16-Year-Olds in NY

Insuring a 16-year-old for car insurance will increase your insurance bill; however, there are ways to save money. The best way to do this is merely adding your child as a secondary driver on an already existing policy instead of creating a new one. Expect your insurance bill to increase by 110% when adding this new driver. It is an exciting and stressful time adding a new driver. Let us help you today! Get a free insurance quote by scrolling to the top of the page and entering your zip code.

Article Sources:

https://www.carinsurance.com/Articles/car-insurance-16-year-old.aspx

https://www.thebalance.com/car-insurance-facts-for-16-year-olds-4107068