The rates for a 16 year old are determined in the same manner as anyone else’s rates are figured out. Information about the driver and their vehicle are evaluated with considerations about how often they will make future claims. If the driver is deemed insurable, a representative will extend an invitation by providing the premium price or estimate of how much a policy will cost for a given time period. The policy periods usually run 6 months or 12 months, depending on the company’s terms. Some specific factors are the driver’s name, age, gender, birth date, and address. The vehicle information needed would include the year, make, and model of the car, its annual mileage, and how the car is used (e.g. taken to work, driven to school). Have these things available before you apply for insurance for a faster submission process.

The final factor that will affect the rates is the amount of coverage purchased. Obviously, the rates will be cheapest when minimal coverage is bought, but that may not be the best choice for your teen. While it is mandatory that all drivers carry basic liability, full coverage will help prevent paying even more out of pocket expenses when there’s an accident. There may be a time when Comprehensive and Collision are not needed, for example when the car has little cash value and it would cost more to pay for that added coverage than it would be to replace the vehicle. Not every 16 year old drives a brand new, fancy vehicle so not every option is needed. Medical assistance through Personal Injury Protection or Medical Payment should be considered for the teen, especially if he/she does not have adequate health insurance.