There is no exemption to the rule. Whether one is a responsible and good-mannered driver or reckless accident-prone individual, everyone must have car insurance.
Indeed it is a must. Thus for parents who are planning to buy one for their teen or college student son or daughter who will soon be driving, purchasing a car insurance is deemed necessary. But what kind of insurance coverage do parents need to have their teens insured of?
In answering this question one must understand that first and foremost insurance companies offer a wide variety of coverage. Let us first look at the basic insurance coverage.
First we have Liability. In cases where the accident is your fault this insurance level could help you. The Liability Coverage is said to be the most important part of a policy since it is covering property damages of the other car involved and the medical bills of personal injury to the other party. However, this insurance does not, in any case, cover your car. Most states are requiring all drivers to avail of at least this basic insurance of Liability.
Second we have the Collision. If the Liability insurance covers the damages inflicted on the other party involved, Collision takes care of your car’s damages, moreover a replacement if the damage is more than 75% of the car’s value.
Third among the basic insurance coverage is the Comprehensive coverage. This insurance level takes care of non-collision cost damages like those brought about by flood, fire, strong winds or any other weather –related natural calamities. Moreover Comprehensive Insurance can also protect you if your car was stolen or totally-destroyed.
Among other insurance coverage would include Medical, Uninsured Motorists, Towing and Labor, Rental Reimbursement and Gap Coverage.
Most people would get the least coverage since it is also coming with lower price. However, in deciding how much coverage to ensure your teen or college student son or daughter with, other consideration must first be given attention.
One factor that may dictate what kind of coverage must be availed for your teen is the state-law. Keep in mind also that state-laws vary across boundaries. We also must consider the banks and finance company’s coverage requirement if we are buying through lease or loans. Other than these two, one can decide any additional services he/she wants her teen to have.
It is also best to first consider your financial capabilities in deciding how much coverage to give your kid. Given that insurance rates for teens and college students are expensive, you as parents must be looking for something that wouldn’t cost too much. Indeed the more coverage one can avail, the better protection one can get. However that would also cost more. Lowering the insurance rate can be done by dropping the Collision and Comprehensive level of insurance. The risk is just that what they can take care of will all be left on your hands or should I say on your pocket.