Teenagers have more problems buying insurance than established drivers. Insurance companies typically charge higher rates for teen drivers because they see teens as having a higher risk of accidents. Teenagers don’t have much driving history, so they can’t prove to an insurance company that they are safe drivers.
Read on to learn about the four types of auto insurance for new drivers and which one is right for your teen. Our guide will help you choose the best type of car insurance to keep your teens safe without breaking your budget.
Find affordable insurance for new drivers
Teenagers need affordable car insurance for new drivers because they don’t have a positive reputation on the road yet. Insurance companies can take advantage of this and overcharge your teen for car insurance. This may be distressing for your teen as they are at the age where they want to save money to move or go to college.
To find affordable car insurance for your teen, you need to learn about the different types insurance coverage. Otherwise, you run the risk of purchasing an insurance plan that is well over your budget.
Best types of car insurance for teens
Teenagers need additional insurance because they are more likely to be in an accident than established drivers. The following are the best types of car insurance policies that you can buy for your teen.
1. Comprehensive Coverage: This insurance covers damage to a vehicle caused by non-collision accidents not caused by your teen. Examples of this coverage include vandalism, theft, or someone breaking into your teen’s windshield.
2. Uninsured and Underinsured Motorist Coverage: This insurance coverage protects your teen if he gets into an accident with someone who has no car insurance. Unfortunately, while auto insurance is mandatory for drivers, many people choose to go without.
3. Liability Coverage: Liability coverage is the minimum amount of insurance you need if you live in the United States. This coverage protects your teen from lawsuits or claims against them if they get into an accident and damage another vehicle.
4. Collision Coverage: Collision Coverage protects your teen if he accidentally hits an object and needs car repair.
Provide your teen with as much insurance coverage as possible to protect him. Accidents happen, and teens are especially prone to car accidents.
Ways to lower your teen’s car insurance
Whichever insurance company you go to for your teen, you will get higher rates than you want. Fortunately, many insurance companies offer ways to do this lower car insurance for your teen. The following are methods you can follow to get the lowest rate possible.
• Buy your teen a safe vehicle with a variety of anti-theft and safety features.
• Increase your insurance deductible if you know you can afford it if an accident occurs.
• Have your teenager co-insured on your car insurance policy.
• Ask your insurance company if they offer safe driver discounts and teen programs.
Some insurance companies give your teen a monitoring device that can help lower their insurance rates if they drive safely.
Purchasing insurance for your teen can be tricky because insurance companies charge more for young drivers. However, you can minimize these costs by finding an affordable insurance company, asking about safe driver programs, and adding your new teen to your coverage.
You should give your teen comprehensive uninsured/underinsured motorist, liability and collision coverage to keep them safe on the road.