If you’re a new teen driver, you know all too well how expensive driver’s insurance can be. Unfortunately, insurance coverage is more expensive for teenagers than it is for adults. This is due to a number of factors: teenagers have less experience, are at higher risk for accidents and traffic citations, and are generally considered less mature than adult drivers. But there are things that you can do to lessen your insurance rate.
If you’re shopping for car insurance and want a cheaper rate, or you are planning on getting your driver’s license soon and don’t know what kind of insurance you need, read on below. We’ve got the answers for you so you can stop worrying and start driving!
Types of Car Insurance
There are several different types of insurance coverage. What do you need and what coverage is optional? Of the optional coverage, should you opt for it anyway? This information can help you decide.
Minimum Liability Insurance Requirements – This type of coverage, or an equivalent proof of financial responsibility, is required in every state. This coverage is provided to pay for property damage and bodily injury in the event of an accident. The amount of coverage that is required will vary from state to state, but one thing that you should take into consideration is that minimum coverage may not cover your expenses in the event of an accident. In such cases, you will be responsible for any expenses not covered by your insurance. For this reason, you should consider getting the maximum coverage that is offered.
Collision and Comprehensive Insurance – In most cases, this type of insurance coverage is optional. Unlike liability coverage, which covers the cost of damage to other people’s property (or bodily injury), collision and comprehensive insurance covers the cost of damage, theft, vandalism, and other expenses to your vehicle. If your car is stolen or is struck in a hit-and-run accident, this insurance coverage will cover the cost of your losses.
Underinsured and Uninsured Motorist Coverage – This type of coverage acts like a safety net. If you are involved in an accident and the other motorist maintains only the bare minimum coverage required, or has no coverage, this insurance plan will cover any expenses not covered by the other driver’s insurance provider. You can’t rely on everyone being as attentive or responsible as you are – this coverage takes that into account.
Teen Insurance Discounts and Tips
So what can you do to lower your insurance premium? One of the best things that you can do is turn 25, but until then, if you make sure to do the following, you’ll help your wallet while maintaining solid insurance coverage.
Maintain a High Grade Point Average – Are you still in school? Whether you’re in college or high school, many insurance providers offer “good grade” discounts. Keep getting A’s and B’s, and you’re sure to lower your insurance premium.
Pass a Driver’s Education Class – Though not required in every state, many insurance providers offer discounts to individuals who have taken and successfully completed a driver’s education course. Pass your class and provide a certificate of completion, and you may see your rates go down.
Pay a Higher Deductible – Are you not terribly concerned about your car? Do you drive an old beater and don’t care whether or not it’s got dented fenders? If so, agree to pay a higher deductible. In the event of an accident, you will be required to pay more upfront (should it be necessary), but your monthly rates will go down.
Drive an Older Car – New cars are expensive, which means they are also expensive to insure. Older cars, by comparison, are much cheaper to insure, because property costs are typically minor in the event of an accident. If you get in an accident with an older car and the cost of repairs is greater than the value of the car, the insurance company will simply consider the car totaled, and cut a check. With new cars, this typically isn’t an option.
Shop Around! You Have Options When It Comes to Insurance!
What’s the simplest thing that you can do to lower your premium? Shop around! Don’t settle for the first insurance quote that you’re given. Get quotes from multiple providers and pick the coverage that is right for you.