How to Get Car Insurance for a 16-Year-Old Driver

What you need to know about insuring a teen driver

A 16-year-old can be added to a parent's car insurance policy, and in most cases that is the cheapest route. The teen does not need their own policy — they are covered under the family plan when they drive a household vehicle. You will need to call your insurance company and tell them the teen is now a licensed driver in your household, provide their driver's license number, and let them know which vehicle they will drive most often. The rate will go up, sometimes significantly, because teen drivers have higher accident rates than any other age group.

South Carolina requires all drivers to carry liability insurance — the minimum is $15,000 for injury to one person, $30,000 for injury to multiple people, and $5,000 for property damage. Your policy must meet or exceed these amounts. If the teen will drive a vehicle you own, that vehicle must be insured. If they will drive only occasionally or borrow a friend's car, your policy's permissive use clause covers them in most cases, but you should confirm this with your agent.

Key Takeaways

• Adding a teen to your existing policy is almost always cheaper than buying them a separate policy, even though your rate will increase.
• You must notify your insurance company as soon as the teen gets their license, or you may not be covered if they are in an accident.
• South Carolina's minimum liability coverage is $15,000 per person and $30,000 per accident for injury, plus $5,000 for property damage.
• Discounts for good grades, driver's education courses, and safe driving apps can reduce the rate increase by 10 to 15 percent.
• The teen's rate will drop significantly at age 25, but will remain higher than an adult's until then.

How much the rate will increase

Adding a 16-year-old to your policy typically raises your premium by 50 to 100 percent, depending on the insurer, your location, the vehicle, and your current coverage level. A parent paying $1,200 a year might see that jump to $1,800 or $2,200. The exact amount varies widely — some companies charge less for teens than others, and some offer bigger discounts for good grades or driver training.

The increase is not permanent. Once the teen turns 25, the rate drops substantially. Between 16 and 25, the rate will decline gradually as they build a clean driving record. If they cause an accident or get a ticket, the rate will spike again.

Discounts that lower the teen's cost

Most insurance companies offer a good student discount — usually 10 percent off — if the teen maintains a B average or higher. You will need to provide a report card or transcript to claim it. This discount typically applies until the teen turns 25 or graduates from college.

A defensive driving course or driver's education course taken before or shortly after getting the license can also reduce the rate by 5 to 10 percent. Some insurers offer discounts for completing an online course; others require a classroom course. Ask your agent which courses they recognize.

Safe driving apps that monitor the teen's speed, braking, and phone use while driving can earn discounts of 10 to 15 percent. These apps send reports to the parent and sometimes to the insurer. The teen can see their own driving score, which sometimes motivates safer habits.

What type of coverage to choose

South Carolina requires liability coverage, but you can choose how much. The state minimum is $15,000/$30,000/$5,000. Many insurance agents recommend higher limits — $50,000/$100,000/$25,000 or $100,000/$300,000/$100,000 — because a serious accident can result in medical bills and property damage far exceeding the minimum. If you are sued and the judgment exceeds your policy limit, you could be responsible for the difference.

Collision and comprehensive coverage are optional but worth considering if the vehicle is newer or financed. Collision covers damage from an accident; comprehensive covers theft, weather, and vandalism. If the vehicle is paid off and worth less than $5,000, the cost of these coverages may exceed the benefit. If it is worth more or still being paid off, they are usually worth the cost.

Uninsured and underinsured motorist coverage protects your teen if they are hit by a driver without insurance or with insufficient insurance. This is optional in South Carolina but recommended, especially for a new driver who may be more vulnerable to accidents.

When to tell your insurance company

Contact your insurer as soon as the teen passes their driving test and receives their license. Do not wait until they have driven the car several times. If they are in an accident before you have notified the company, the claim may be denied because the insurer did not know they were a licensed driver in the household.

Have the teen's driver's license number ready when you call. You will also need to tell the agent which vehicle the teen will drive most often, though they are typically covered on all household vehicles under your policy's permissive use clause.

Comparing rates from different companies

Insurance rates for teen drivers vary significantly between companies. Getting quotes from at least three insurers before adding the teen to your policy can save hundreds of dollars a year. When you call for a quote, provide the same information to each company: the teen's age, license number, the vehicle they will drive, your current coverage, and your driving record.

Some companies specialize in teen drivers and may offer better rates than your current insurer. Others have higher rates but offer better discounts for good grades or safe driving. The cheapest quote is not always the best choice if the company has poor customer service or a low rating for claims handling.

What happens if the teen causes an accident

If the teen is at fault in an accident, your liability coverage pays for the other person's medical bills and property damage up to your policy limit. Your collision coverage pays for damage to your own vehicle, minus the deductible you chose. Your rate will increase after an at-fault accident, usually by 20 to 40 percent, depending on the severity and your insurer's policy.

The rate increase typically lasts three to five years. Some companies offer accident forgiveness programs that waive the increase if it is the teen's first accident and they have been with the company for a certain length of time. Ask your agent whether your policy includes this.

Frequently Asked Questions

Can a 16-year-old get their own car insurance policy?

Technically yes, but it is almost never the right choice. A separate policy for a teen costs significantly more than adding them to a parent's policy. Most insurers require the teen to be at least 18 to purchase their own policy, and even then, the rate is higher than it would be as an additional driver on a parent's plan.

Does the teen's rate go down if they don't drive much?

Not automatically. The rate is based on their age and driving record, not on how many miles they drive. Some insurers offer low-mileage discounts if the teen drives fewer than a certain number of miles per year, but you have to ask about this and may need to provide odometer readings.

What if the teen drives a friend's car?

Your policy's permissive use clause typically covers them, meaning your liability coverage applies if they cause an accident in someone else's vehicle. However, the friend's insurance is primary, so their policy pays first. Confirm with your agent that your policy includes permissive use coverage before the teen borrows a car.

Does a learner's permit need to be insured?

Yes. A learner's permit holder is a licensed driver and must be covered by insurance. Add them to your policy as soon as they get the permit, not when they pass the driving test. The rate increase is the same whether they have a permit or a full license.

Will the rate ever go back down to what it was before?

Yes, but not until the teen is 25. At that age, insurance companies consider them a fully mature driver, and the rate drops substantially. Until then, it will decline gradually as they build a clean driving record, but will remain higher than an adult driver's rate.