The Best Teen Driver Insurance Plans For Small Families
No parent wants to think about their teen driver getting into a car crash, but it’s important for parents to seriously consider this possibility. Teens are at a high risk of getting into car crashes caused by distracted driving, poor weather conditions, and inexperience. Every parent with a teen driver should prepare for the inevitable by obtaining auto insurance coverage–regardless of whether or not it is required by law.
There are countless insurance companies and even more options when it comes to different types of coverage. Because of this, it can be hard for parents to determine which insurance policy will offer the most protection at the best price. Don’t spend hours searching for the perfect policy–take our advice instead.
Here’s a look at some of the best teen driver insurance plans for small families:
Liability Insurance Coverage
If your teen causes a crash with another driver, your teen is responsible for paying for the other driver’s damages. Fortunately, teen drivers that are covered by liability insurance will not have to pay out of their own pockets. Liability insurance coverage typically consists of both property damage insurance and bodily injury insurance. Liability insurance covers the cost of the other driver’s damages, but it does not cover the cost of your teen’s damages. For example, property damage liability insurance will pay to repair the other driver’s car after an crash, but it will not pay to repair your teen’s car.
Most states require drivers of all ages to have liability coverage, however the minimum requirements vary from state-to-state. Even if your state does not require liability insurance, it’s best to get this type of coverage anyways.
Collision Coverage Insurance
Many parents consider adding collision coverage to their teen’s insurance policy. Collision coverage covers the costs of repairing or replacing your teen’s vehicle in the event of an crash. For instance, let’s say your teen collides with another vehicle or even a guardrail. If your teen’s car is damaged, this insurance will cover the cost of repairs.
Collision coverage is typically not required unless your teen is leasing or financing a vehicle. But, many parents choose to add it anyways to ensure their teen’s vehicle is covered in the event of an crash. However, it’s important to note that adding this coverage to your teen’s insurance policy will raise the monthly rate.
There is also comprehensive coverage, which offers even more protection to teen drivers. This type of insurance will pay for damages caused by natural disasters such as fires or floods. It will also cover damages related to theft, vandalism, or collisions with animals. Similar to collision coverage, comprehensive coverage is usually only required when the car is leased or financed. But, parents still have the option of adding it on to their policy if they are willing to pay higher rates for the additional coverage.
Personal Injury Protection (PIP) Coverage
Personal injury protection (PIP) insurance is only available in “no-fault” states such as Florida, Michigan, and New Jersey. This insurance will cover the costs of your teen’s damages after an crash regardless of who was at fault. For example, if your teen is in an crash and another driver is to blame, PIP insurance will cover your teen’s medical expenses, property damage, and more. This makes it possible for your teen to recover the compensation he deserves without having to file a lawsuit against the other driver. But again, this coverage is not necessary unless you live in no-fault state.
Discounts on Insurance
Insuring a teen driver is expensive. For this reason, it’s important for parents to talk to the insurance company to find out if they offer discounts to teen drivers. For instance, a number of insurance companies offer discounts to teen drivers who make good grades. There are also discounts available to teen drivers who are willing to complete a driver education program. Discounts like these can significantly lower the overall cost of insurance, so encourage your teen to take advantage of them. Just make sure that the driver education program qualifies, as not all programs will earn you the discount with your insurance company.
Should Teens Buy Their Own Insurance?
Many parents wonder whether it is cheaper to add their teen onto their insurance policy or have their teen sign an insurance policy on their own. Every situation is unique, but in general, it is cheaper to add your teen onto your insurance policy than it is to obtain a policy in your teen’s name. Of course, you can always ask for quotes from different insurance companies to see the difference in cost.
As you can see, there are many different types of coverage that offer protection to teen drivers. Ask your insurance provider for a quote on these different types of coverage today so you have the information you need to choose the best policy for your teen.