Getting your driver’s license for the first time is an important moment in every teenager’s life. With a car comes the responsibility of purchasing insurance, which can be expensive for new drivers. This article will help you to understand how to buy affordable young drivers car insurance and what type of insurance policy a teen driver needs.
What Type of Vehicle Insurance Coverage Do I Need
When buying car insurance for a teenager or any new driver, it is important to understand what types of coverage are available and recommended. At a minimum, automobile liability insurance is required by law for all drivers. Other policies to consider are “comprehensive and collision insurance”, as well as “uninsured/underinsured motorist coverage”.
Auto liability insurance for teen drivers is the most important type of policy for a young driver and their parents. This is because these types of policies help to protect the other drivers on the road and limit the liability of the person who is deemed responsible for the accident. Since minors cannot be sued directly for the expenses created in an auto accident, their parents are liable for repair fees and hospital bills. Aside from the basic requirement of this type of insurance by law in each state, it is essential for parents to protect their liability so that their child’s accident does not financially damage the entire family.
The standard liability coverage limits that are recommended by Consumer Reports are as follows:
1. Per person bodily injury liability of $100,000
2. Total per accident coverage of $300,000
3. Property damages limits of $100,000
The need for comprehensive and collision insurance for a young driver will depend on your family’s personal situation. This type of coverage protects the vehicle of the driver whether it is stolen, damaged by weather such as hail, or totaled in an accident that is caused by the driver.
Many young drivers start out with older cars that can be replaced or repaired relatively inexpensively. In this situation, it can make more sense to not have a comprehensive and collision policy because it will help keep the premiums lower. On the other hand, newer or more expensive cars should have this type of insurance so that a repair or replacement of the vehicle will be covered in the case of an accident.
Finally, all drivers, young and old, should seriously consider having uninsured and underinsured motorist coverage. In an effort to save money, many drivers will not buy insurance or purchase the minimum policy that is allowed by law. In the situation where they cause an auto accident, they do not have the coverage that will pay for your damages and possible hospital bills. While they are liable for your costs and you can sue them for the money they owe you, drivers who cannot afford the minimum car insurance often have no assets that can be used to pay the bills they have incurred. This means that you are stuck with the expenses.
Fortunately, uninsured driver coverage is very inexpensive. This is because most vehicle operators on the road are properly insured. It is recommended to match your per person coverage for bodily injury liability, which should be around $100k, as stated above.
How to Buy Discount Vehicle Insurance for a Teenager
Unfortunately, teenage drivers can be very expensive to insure. This is because new and young drivers have yet to develop a good driving history and are statistically more likely to get into an accident. For this reason, cheap teenage car insurance is difficult to find, but everyone can take some steps to lower their premiums with young driver insurance discounts.
One of the simplest ways to lower your teenage driver’s insurance premiums is to make sure that they are working hard to get good grades. Many insurance companies see good grades as an indicator that the young driver is able to be responsible, which can translate to their driving on the road. Every company will have their different grade requirements, so you will need to ask around to find out what GPA is needed for the good grades auto insurance discount.
A family discount on auto insurance is possible due to the purchase of multiple insurance policies. You can save a good deal of money by consolidating all of your policies under one insurance company, instead of spread out. Aside from making it easier to track overall, insurance providers want your business. This means that keeping your vehicle, home, and life insurance policies together will give you a reduction on all of your insurance.
You should shop around for insurance every 6 to 12 months. Once you go through the process of finding the lowest cost auto insurance for teenagers and consolidating all of your policies under one company, you should take that experience and make quick calls to companies for updated pricing once or twice a year. This is particularly helpful with teen drivers because even 6 months of good driving history can help show they are a safer driver, which means that an insurance company might give you lower rates. In addition, the possibility of having you switch all of your insurance policies to a new company will help you to receive aggressively priced premiums, so that they can earn your business.
With the knowledge that you have read here, you should be ready to buy young driver’s car insurance at an affordable premium. In addition, the insurance buying tips can be used to reduce your whole family’s cost for insurance coverage.
Tags: auto liability insurance, automobile liability insurance, buying car insurance, collision insurance, vehicle insurance, young drivers car insurance
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