subject: How Much Is Insurance For A 16 Year Old? [print this page] Exactly how much is insurance for a 16 year old? Well, let's put it this way: You're probably going to pay more now for insurance than you'll be paying ten years from now, but far less than you will be paying twenty years from now.
If this sounds ambiguous, it breaks down sort of like this: When you're sixteen, you get penalized on insurance based on your age alone. When you're twenty six, you're typically not penalized at all, assuming you're a safe driver, and that means that you can look forward to lower and lower rates each year. In twenty years, when you're thirty six and you're tired of clunkers and you buy your first NEW car, you'll probably be required to buy full coverage, which can cost several times what you'll be paying as a sixteen year old.
Luckily, when you're sixteen and just now getting insured, being sixteen is the only penalty you have to worry about. If you look on the bright side: You can't possibly have a bad driving record at this point.
Furthermore, your first car is probably a clunker that will, for one, be incredibly cheap to insure, regardless, and which won't require full coverage.
Okay, but enough of this positive thinking stuff, what about the facts? How much EXTRA does a sixteen year old need to pay for the same insurance as a thirty year old with a clean driving record?
This depends on a two key factors...
State Law
State law, you'll soon learn, goes a long way towards determining the price of insurance. Depending on where you live, you might be paying very little, or quite a bit extra.
The Insurance Provider
It's usually up to the insurance provider. Since it's them putting their money at risk to insure you, it's going to be them who decide how much extra you'll be paying beyond the state law minimum.
You should expect to pay anywhere from five to twenty percent, on average. But, in some states and with some providers, a lot of factors will weigh in. A GPA of 3.0 or higher might lower your premium by ten percent. A clean criminal record might drop it. A higher need, such as being a primary driver for the family, might even drop the premium. Pretend you're applying for a college and give them all the good news about yourself and see what that gets you.
by: Lance Thorington
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