Buying auto insurance for teenagers is far more complex than it appears to be. There are websites which specifically help you apply for quotes for teenage auto insurance, and such sites can be a boon in your hunt for affordable insurance.
Deciding factors for the premium
Insurance companies will consider the teenager’s age, sex, driving record, location, and of course the car they drive. The older your teenager the lower the premium will get, males attract a higher premium as compared to females who tend to be more careful on the road. The teenagers driving record till date (if any) will also be considered; a less than perfect record will result in higher premiums. If the teen is living in a high crime neighborhood, the premium will shoot up as the car will be more susceptible to vandalism, theft and even damage. Certain cars are considered high risk, as they feature high on the cars most likely to be stolen, or simply because they are modified and/or high performance vehicles that are more likely to end up in a crash.
Know your Discounts
Discounts can be obtained for students who keep good grades. Many insurers also sport a discount for students living away from home.
Don’t only compare prices when considering insurance quotes, also consider the cover and its extent being provided. A lower insurance could mean much more expense in terms of medical and repair bills in the vent of an accident. Evaluate the teens driving conditions and usage pattern to determine what cover should be signed up for.
Collision insurance: pays for repair shop bills for your teen’s car. As teens are normally learning to drive, collision cover is highly recommended.
Liability cover: pays for medical bills, and applicable wages if any.
Comprehensive cover: pays to repair damage due to acts of vandalism, natural disasters, and other such non collision related damage. Coverage is extended to cover collisions with stationary objects. A must have if the teen drives to college where the car is likely to be a target for vandalism.
Un-insured/Under-insured cover: pays for damages if the third party has insufficient of no insurance.
Extent of cover
Extent of cover is the maximum amount you will be paid for in the event of the said damage occurring. Every state has a pre described “state minimum” and insurance should always be taken in excess of this figure. In the case of teen insurance, it is very highly recommended to take a higher cover since they are more likely to be involved in an accident. If the cover is too low, and the amount the insurance company pays out is insufficient, you’re considered as being under insured for that particular accident, and will need to pay the remainder out of your pocket which can be a huge financial strain as it will need to be paid in a lump sum.
Do you need a new policy?
If you have a teen in the house that doesn’t hold a driver’s license, you don’t need to don’t need to do anything. If your teen holds a drivers license you will need add him or her onto the insurance policy for your car (which translates into a higher premium for you). If the teen has their own car, you will need a separate insurance policy as any mistakes they make will affect your premium.