This is quite a common question posed by the many parents all over the world who want to give their teenage sons and daughters cars to educate them on the importance of responsible driving. With this endeavor, it becomes important to take out teen auto insurance as well – and this is something parents do find consensus in. However, not all parents take out teen auto insurance for the basic reason that such packages can be quite expensive. So, do parents really need to take out a bank loan just to insure their teenage drivers? To answer that question, you need to know first what the basic policy covers.
Bodily Injury Liability
This coverage takes care of the injuries that a teenage driver might inflict on others in the event of a car accident. If your son or daughter is listed in your own policy, then he or she would also be covered if they cause any car accident while driving another person’s car. This is provided that he or she was given permission to drive the car in the first place.
Without bodily injury liability, as a parent, you could be sued if your child causes a car accident and injures other people.
PIP or Personal Injury Protection
Medical payments are always present in car accidents. With PIP, you are covered to pay for the treatment of whatever injuries your teenage driver and his or her passengers have incurred.
Property Damage Liability
This covers any damages that your son or daughter has caused on the property or properties of other people involved in the accident. These would include the other car, fences, posts, and such fixtures.
Collision
This covers the damages to your teenager’s car during an accident involving another car or object, hitting potholes, or flipping over. This feature typically comes with a deductible that can range from $250 to $1,000. As soon as you can meet the deductible, your insurance company would then pay for the rest of the expenses.
Comprehensive
This feature takes care of damages to your car that aren’t caused by another car, but by other things. These causes could be falling objects, earthquakes, fire, hail, explosions, riots, animals, vandalism, and the like.
Uninsured/Underinsured Motorist
This is coverage for your teenager in the unfortunate case where a hit-and-run driver hits him or her. Another case where this coverage would be handy is if a driver without insurance or has insufficient insurance hits him or her. Your insurance company can then cover the entailed expenses.
