The law requires teens to have car insurance just like adults to protect third parties, the driver, and the vehicle in case of an accident. However, given the higher risk profile of teens, car insurance can be expensive, according to a Forbes report. Young drivers between the age of 16 and 24 are not only new to driving but also inclined to drive rashly. It can often be overwhelming to pay a lot extra for the newfound liberty of the kids for parents, not to speak of the shocking realization that their children are growing up. A few handy pointers to buying car insurance for teen drivers:
A Standalone Policy or Club with Your Existing Coverage
While you can always buy a separate car insurance policy for your teen, it is typically far less expensive to include him or her in your existing policy. You can always remove them later on in case the premium amount becomes too high if they meet with an accident or move out of the home to study or work out of state. Even though you do not need to buy insurance for your teens while they are learning to drive, it becomes mandatory when they get their driver’s license. For best insurances for cars, it is best to consult your insurance agent or your insurance company regarding what to do when your teen gets his license. You will know what options are open to you and the pros and cons of each.
How Much Insurance Is Enough?
It can be a good idea to reexamine the coverage of your current policy at the time of adding your teen. You may like to increase it because it is more likely that a teen will be involved in an accident that causes damage to property, own and other vehicles, injuries, and even fatalities. When evaluating your need for coverage, you should factor in the cost of vehicle repairs and medical expenses, as well as claims by other parties that can destroy your finances if you have to pay from your pocket.
If you don’t have adequate collision coverage, you should consider increasing it to ensure your vehicle can be repaired or replaced in case of an accident. With young and inexperienced drivers taking to the wheel, it is prudent to increase your insurance coverage to adequately protect your assets. However, if you have several cars, you can reduce your insurance cost by restricting your teen to driving only one of them. Additionally, if they drive occasionally, it is better to let them use your car rather than buying their own vehicle.
Even though car insurance for teens can be expensive, there are a few ways of cutting costs that you should consider instead of reducing your coverage. Bundling your policies and increasing your deductible are effective techniques as are good grades and courses in safe driving skills by your teen. The rate can also go down if your teen goes out of state to study or drives rarely. Over a longer period, not getting traffic tickets or being involved in accidents can further reduce the premium.