How Much is Car Insurance For a 16-Year-Old in California? (2024)

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How Much is Car Insurance For a 16-Year-Old in California? ›

Car insurance for a 16-year-old in California costs $2,534 per year, on average - or about $211 per month. Car insurance for teenagers is far more expensive than coverage for older, more experienced drivers due to teenagers' proclivity for risky driving and relative inexperience behind the wheel.

California parents adding a 16-year-old driver to their full coverage auto insurance policy can expect an average premium of $6,325 per year.

The average cost of full-coverage car insurance in California is $193 per month or $2,313 per year. It's about 15.2% more expensive than the national average of $2,008, according to our research, and the cost of California car insurance went up by 10.7% from 2022 to 2023 based on our rate data.

Young Drivers and Accident Rates

The primary reason automobile coverage for teenagers is so expensive is that young people get into more car accidents than older drivers. As drivers mature and get used to handling vehicles, they become far less likely to get into a wreck.

Here are the minimum liability insurance requirements (per California Insurance Code §11580.1b): $15,000 for injury/death to one person. $30,000 for injury/death to more than one person. $5,000 for damage to property.

Auto-Owners has the cheapest car insurance for 16-year-old drivers with their own separate policy, compared to competitors we evaluated. That's about $3,380 cheaper than the national average ($8,765). Geico has the second lowest car insurance cost for 16-year-old drivers: $2,875 cheaper than the national average.

*Free membership is for Teen(s) age 15-17 years old. Fee AAA Membership expires when teen(s) turns 18. All teen members must reside in the same household and will have the same membership type as the Primary Member.

The cheapest car insurance rate is $38 a month from Geico according to our research team's cost analysis of national average prices for minimum coverage. The top 10 cheapest car insurance companies are Nationwide, Geico, State Farm, Travelers, Progressive, AAA, Allstate, Chubb, Farmers and USAA.

Rise in Theft of Vehicles and Car Parts

One of the most shocking reasons that coverage costs have increased in recent years is the rising crime rate of automobiles and auto parts.

Geico, Progressive, USAA, State Farm and Allstate are the best car insurance companies in California based on cost, reputation and coverage options.

At what age is car insurance most expensive? ›

The Insurance Institute for Highway Safety reports that teen drivers are four times more likely to get into a car crash than drivers 20 and older. As a result, car insurance companies view young drivers as the most risky to insure. Drivers ages 16 to 24 tend to face the highest premiums compared to other age groups.

Age is one of the most important factors insurance companies consider when coming up with a car insurance quote because young people have less driving experience. Drivers under the age of 25 tend to pay the highest car insurance rates. Rates start to increase again after age 60.

Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have. Employer coverage is often the best option, but if that is unavailable, obtain quotes from several providers as many provide discounts if you purchase more than one type of coverage.

Car insurance for a 16-year-old in California costs $2,534 per year, on average - or about $211 per month. Car insurance for teenagers is far more expensive than coverage for older, more experienced drivers due to teenagers' proclivity for risky driving and relative inexperience behind the wheel.

You'll be covered by your parents' or instructor's insurance while practicing with your permit, so you won't need insurance of your own until you get your license. Ultimately, this can save you a good chunk of money as insurance premiums tend to be highest for teens.

Since California is not a no-fault state, injured victims must file car accident claims with the at-fault driver's insurance company. This means they must identify the driver who caused the accident and prove this driver's fault during the insurance process.

Insuring a 2022 Chevrolet Corvette costs $8,638 per year for a 16-year-old driver and $1,946 annually for a 40-year-old driver. Why Trust MoneyGeek? We collected thousands of car insurance quotes from Quadrant Information Services to analyze average rates for a Chevrolet Corvette. Learn more.

Insurers and California officials duked it out

Prior to this, the commissioner had prevented auto insurers from raising rates. The upside was lower rates for Californians. The downside: insurers have been threatening to pull out of California. The result is what we have today: huge rate hikes.

AAA insurance premiums tend to be more expensive than the national average because AAA doesn't write its own policies. Each regional club operates independently and sells insurance policies underwritten by different agencies.