Auto Insurance for Your Teen

Nothing gives more peace of mind than knowing you have done everything you can to keep your child safe and prepared for life’s challenges. For this reason, it’s critical that you know what precautions your teen driver should take before driving on their own. This article will cover everything from the vehicle your child uses to the insurance they require, as well as other safety suggestions.

Full Coverage Auto Insurance for Teens

If your child is old enough to drive on their own, it is critical that they have the proper auto insurance. If you have a new driver, it is wise to purchase full coverage which always includes collision coverage. The main reason for this is statistically teens have a higher chance to cause an accident than a more experienced driver. 

By not including collision coverage, you will be 100% responsible for any damages to the car they are driving if they cause an accident. Comprehensive insurance is low cost to have on a car and will also provide important protections.

Average Costs

According to CheapFullCoverageAutoInsurance.com, it is estimated that the annual cost of full coverage auto insurance in the U.S. is $1,190. Teens, however, are an entirely different story. An average full coverage insurance policy for a teenager ranges between $1,700 and $3000. To fully understand why it’s more costly, it’s critical to grasp the dangers associated with teen drivers.

Associated High-Risks 

According to CDC.gov, in 2019, over 258,000 teens were treated in ERs for car accident injuries. To avoid your child being a part of this statistic, make sure you and your teen are aware of the top reasons for teen car accidents and fatalities:

1. Inexperienced driving
2. Driving with other teens
3. Driving at night
4. Not wearing a seat belt
5. Distracted driving
6. Driving while tired
7. Driving recklessly
8. Driving while impaired

Since teen drivers are considered high-risk for these reasons, they are automatically going to have higher rates. The good news? There are still ways to ensure your child’s safety and protection without breaking the bank.

Choose the Car They Drive Wisely

Your new driver may have their heart set on a nice new car, but keep in mind that brand new and/or luxury cars cost more to insure. The good news is that the Insurance Institute for Highway Safety has tracked down ten cars that not only sell for under $11.000, but also include important safety features to help protect your loved ones. A low purchase price will not only make the purchase much easier, but sill also keep your full coverage insurance bill from ballooning.

Source

Increase Your Liability Limits

Your teen’s liability coverage is critical to their safety in the event of an accident in which they are at fault. However, the minimum liability insurance required by your state may not be enough to avoid a lawsuit. If your child is found at fault in an accident and the costs exceed your policy limits, you could be sued for the uncovered amount. Consider getting more liability coverage than is required. Generally, drivers should have 100/300/100 liability coverage, which is $100,000 in personal injury liability, $300,000 per accident in bodily injury liability, and $100,000 in property damage liability per accident.

Raise Your Deductible

You can drastically reduce your monthly premium by increasing your deductible. However, if your teen has an accident, the deductible must be paid out of pocket. Raising your liability insurance may be a better option if the automobile is older or has a lot of wear and tear.

Choose a Multi-Car Policy

Adding your teenager to your auto insurance policy can save you money in most circumstances. Your overall insurance costs will go up, but your coverage and deductibles will be extended to your teen as well.

If your teen has a luxury car, the premiums will be higher than other cars on your policy. Here, it may be cheaper for them to have their own policy. Also, if either parent has a DUI or other driving offenses, it may be cheaper for them to buy their own coverage rather than add a minor driver to the existing policy.

Encourage Good Grades

According to statistics, higher-achieving students are more responsible and safer drivers. If your adolescent maintains a B average or above in school, you may be qualified for a student discount from your auto insurance provider.

Have Your Teen Take a Driving Course

Teenagers’ lack of driving experience and risk-taking behavior increases their crash risk. For inexperienced drivers, GDL (Graduated Driver Licensing) systems allow for additional practice time, lower high-risk driving, and involve parents more. For example, drivers gain driving privileges as they go through the GDL stages, such as driving at night or with other young passengers. This “graduation” system has shown to reduce injury crashes by 19% and fatal crashes by 21% for 16-year-olds.

The Bottom Line on Auto Coverage for Teens

With our children, it’s easy to get caught up in the hypothetical scenarios. When your teen first drives, you may ease some of this anxiety by ensuring sure you have adequate insurance coverage for him or her. It’s better to be prepared for the worst-case scenario and hope it never happens than to lack the coverage needed in the event of an accident.

Just keep in mind that if you opt to include your child on your insurance plan, your assets may be in danger if they are found to be at fault in an accident. Consider speaking with your insurance agent about expanding your liability coverage, as well as about full coverage and umbrella protection alternatives for your teen. In the event of a claim, the value of having these additional benefits far outweighs the expense of paying higher premiums. As always, check around with multiple insurance companies to ensure that you are getting the best coverage at the lowest price possible, especially if you are adding a new driver to your policy.