Teen Guide to Auto Insurance
One of the first things that you’ll need to do when you start driving is become insured to drive. If you have your own car, you’ll need to get your own insurance policy; if you’re driving Mom or Dad’s car, you’ll need to become an insured driver under their policy. You might be confused as to what the difference is, or how to go about getting car insurance…which is why we’ve put together a Teen Guide to Car Insurance that will help you on your way!
Car Insurance Tips for Teens
The first thing you need to do is determine whether you’ll be getting an auto insurance policy on your own, or becoming insured upon your parents’ existing policy. What’s the difference, you ask? Well, if you’re lucky enough to begin driving in your very own car, that car will need its very own insurance! For the rest of us, we’ll need to borrow the family ride to get where we need to go; and in order to drive it, the state requires that we be insured against any damages in case we get into an accident with that vehicle. So your parent or guardian will need to add your name to his or her policy as a licensed, insured driver of that vehicle.
Why Does It Cost So Much?
Because you’re a new driver, the state is going to assume (however unfairly!) that you’re not a very good one yet. Therefore, it’s going to cost more to insure you, because you will be seen as a potential hazard until you’ve had some more experience on the roads. There are ways to try to keep those costs as low as you can, though:
- Be a good student! Many insurance providers will reward good grades with lower rates.
- Be a safe driver! The longer you go without any incidents (including citations and accidents), the more the state will recognize that you are a responsible driver.
- Pay a higher deductible. Although you’ll be responsible for more money in the event of a claim, your overall premium cost will be lower – and hopefully you’ll never have an event in which your deductible will be necessary!
- Get a modest car. Sports cars and brand new models will automatically require a higher insurance rate. Opt for a vehicle a bit older, without the bells and whistles, and you won’t have to pay the higher price.
More Car Insurance Tips for Parents
Even though the cost of having a teenage driver is a little more than you bargained for, you can still safeguard yourself from exorbitant fees by doing a little pre-planning. Ask your insurance company if they offer multi-car discounts; getting your teen onto your plan with their own car could save you all a little bit of cash. Also, be particular about the kind of coverage you purchase for your child. Optional coverage types, such as collision or comprehensive, may not always be the best decision if your teen drives an older car without financing. Finally, try to avoid listing your teen as a primary driver on your account. If possible, listing them as an occasional or pleasure-only driver will save you a lot of money in the long run.
