Every year, and this year included, thousands of teenage drivers would hit the streets. After learning how to drive and most especially after obtaining their driver’s license, teenagers are most often careless and excited while driving. Because of this, they are considered as high risk auto insurance drivers.
Case at hand: In a study released by the Insurance Information Institute (III), a quarter of them use cell phones to send text messages and answer calls while driving. About the same percentage also eat and drink behind the wheel. Some attribute this for immaturity or lack of experience. However, the point is, this negligence adds to the risk of having vehicular accidents.
Because of this, columnist and auto insurance expert, Phil Mulkins, recommend that parents must educate teens not only in the hazards of reckless driving, but also of the long effect of paying for costs of insurance. The price of paying for cost of accidents is relatively higher when one is the initiator or cause of the accident.
Mulkins stressed that insurance companies usually have different programs that covers teenagers. He advised that it would be less costly if parents or guardians would enroll them on a policy of their own. More so, there are discounts for multiple car insurance that could be availed of by parents.
As of date, most states implement minimum liability insurance. Some experts believe that such may not be ample to assist those who are insured from any legal actions that may arise. Mulkins said that since accidental damage caused by young drivers may exceed the minimal mark, most civil laws require that parents or guardians be also held financially liable. It would be for the best to use the “25-50-25” policy limit set-forth by most states.
A “25-50-25” insurance policy refers to bodily injury and property damage coverage or BIPD. It simply means coverage of $25,000 per person to a maximum of $50,000 per occurrence for injury one may cause to person/s, and $25,000 coverage for property damage.
An umbrella policy on the other hand, he said, is also a good option. It is designed to give added liability protection way-above the normal limits of motor insurance policies. It could give an additional $1 million when liability on the current policy had been exhausted. It usually adds $150 to $300 yearly depending upon the insurer.
III is an organization founded to improve a better understanding of insurance for the public. One of its goals is to inform the public on the workings of the insurance industry and releases reports concerning consumers such as teenage drivers.