Mar 14, 2023

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


  • 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? 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

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.


The NGPF Semester course has the most comprehensive and relevant set of insurance lessons available on the market today. Includes lessons on auto, health and renters/homeowners and more! 


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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