It’s no secret that car insurance can get expensive — especially if you’re a teen driver. In fact, The Zebra recently reported that on average, a 16-year-old driver with their own policy would pay around $6,600 a year — more than three times the average for drivers between the ages of 23 and 85. 

Since new drivers don’t have much of a driving record for insurers to review, they consider a range of other factors instead. Here’s a look at a few of the things that can play a role in how much you’ll pay.

1. Where You Live

Some states have higher premiums than others. In 2024, drivers in Florida and Louisiana both paid an average of more than $2,700 per year, which is 47% higher than the national average. In contrast, Vermont and Idaho both had average annual premiums that were 35% below the national average.

What makes this happen? It could be due to anything from local laws and weather patterns to a specific area’s driving patterns and accident rates. For example, you may pay more if you live in a big city, an area that gets a lot of catastrophic storms, or even an area with a higher crime rate.

2. Your Gender

There was a time when men were considered a higher driving risk and paid more for car insurance. But today, the rates are generally about the same. However, for younger drivers, the story is different. According to The Zebra, men under age 20 pay about 14% more for their coverage than women of the same age. 

Of course, you can’t do anything about your gender, so if you're a younger guy, that's kind of a bummer. But the good news is that you can offset the price difference by building a good driving record over time. A defensive driving course can help you learn how to avoid accidents and tickets — and it just might get you a discount on your insurance.

3. Your Age

When it comes to teen drivers, there’s a good chance that a 16-year-old will pay a lot more for car insurance than a 19-year-old. At 16, the average cost for a full-coverage policy is $7,149. By the age of 19, this drops to an average of $4,126.

Why the big change? Well, new drivers are a big risk for insurance companies, mostly because there are so many unknowns. Once you gain more experience, the insurance company can start to weigh factors like your driving history, annual mileage, and prior insurance — often leading to lower rates.

4. Your Grades

Did you know you might be able to get an insurance discount for being a good student? It’s true. A Good Student Discount is available to high school and college students who earn good grades. Generally, to qualify, you must:

• Be under age 25

• Enrolled full-time in high school or college

• Maintain at least a “B” average or reach a certain level on tests like the SAT or ACT

Each insurance company may have different rules and discounts, but it’s worth the effort to reach out and find out if you can take advantage of this money-saving perk.

5. What You Drive

According to ValuePenguin, minivans, SUVs, and smaller pickup trucks are generally the least expensive type of vehicle to insure. As you get into vehicles with more powerful engines and extra features, insurance costs tend to go up.

Sports cars are often more expensive to insure because as a whole, they’re involved in more accidents than other types of vehicles. Electric vehicles also often come with higher premiums when compared to cars with traditional gas engines, mostly because they use advanced technology and are more expensive to repair.

Keep Auto Insurance Costs Down with Safe Driving Habits  

As you spend more time behind the wheel, your driving record will have a greater impact on your insurance rates. While it’s best to avoid getting tickets in the first place, if you slip up, online traffic school may help you avoid points on your license and insurance hikes.

In some states, you may even be able to get an insurance discount by completing traffic school. Plus, you’ll learn valuable skills that will help you become a safer, more confident driver. Explore DriversEd.com’s online courses now. 

Updated 11/05/2024