There’s a really exhilarating feeling that comes along with getting a driver’s license and starting your career as a driver. However, there is something that doesn’t sound like as much fun as driving, and that’s car insurance. Sure, it might not seem to be the most thrilling thing, but it’s something that you as a teen driver need to know about. So, what is the real deal about auto insurance? What do you need to know? Here are seven things that teens should know about car insurance.
What should teens know about car insurance?
1. Car insurance rates can be high for teen drivers.
The reality is that teen auto insurance rates can be quite high. New drivers haven’t had much experience behind the wheel, and the crash rate for the younger age group is high. That means that the car insurance rates for teens are often pretty pricey. We’ll get to how you can keep your rates down by driving safe. But it’s generally a good idea to be prepared for high insurance rates so you’re not taken aback when you get your rate.
2. The car you drive affects your rates.
The dream might be to drive a super cool, fancy car that will go super fast. Admittedly, that would be pretty neat. But your insurance rates will probably thank you if you drive a safe, practical vehicle that’s technically the “family car”. It’s perhaps not quite what you wanted to hear, but it’ll get you where you need to go. Think about all the places you’ll get to go, regardless of whether you’re driving your dream car or a family SUV. So yeah, you might bemoan that your parents are making you drive the family car, but they’re probably onto something.
3. You can save money on your insurance by getting good grades.
As a high school or college student, you’re probably looking at some pretty expensive insurance rates, like we mentioned earlier. But there’s a simple way you can lower those rates. If you have good grades, you could get a discount on your insurance. It’s called the Good Student discount. If you’re a student who makes good grades, that can definitely work in your favor. See about getting that discount – but be prepared, you’re probably going to have to show some proof of those good marks, like a transcript.
4. Drivers ed can also help you save money.
If you take a driver’s ed class, that can also help you save money on your insurance. We know – that doesn’t sound riveting. But it’s important for teens to learn to be a safe driver, and those classes can teach you a lot of useful things. Putting in a few hours for a driver’s ed course can both help your insurance rates and help you learn a lot of really important driving fundamentals. So, don’t overlook taking those classes.
5. Driving safe pays off.
It probably seems pretty obvious and you’ve probably heard it a million times – drive safe. But it’s really important not only to help you avoid accidents, but to help your insurance rates. The thing is that your driver record can affect your rates. So, stay safe behind the wheel to protect yourself and other drivers on the road. And to help your insurance rates. Being a responsible driver means paying attention to traffic laws, not driving distracted, and all in all making good choices.
6. The states set minimum limits of car insurance.
Another important thing to know about insurance is that the states require drivers to carry it. They set a minimum limit of coverage that drivers need to have. (For example in Georgia, drivers need to carry $25,000 of bodily injury liability per person, $50,000 of bodily injury liability insurance per occurrence, and $25,000 of property damage liability.) The truth, though, is that you might want to carry higher limits of insurance than the state minimums, though. The minimums are actually quite low and might not be enough to truly cover the consequences of a serious accident.
7. You should probably be on your parents’ policy.
The next thing you need to be aware of is what policy you should be on. When you’re talking about teen car insurance with your parents, know that you should probably be on your parents’ policy rather than your own. If they have good driving records, this is probably going to be the best route for your family’s insurance. The technical side of things might not be something you want to dig too deep into, but it’s something you’ll probably end up talking about.
8. Different coverages do different things.
Another piece of the insurance puzzle is understanding that different coverages do different things and protect you from different risks. Here are some of the most common coverages that you and other teens should know about:
Bodily injury liability: can cover the other driver’s medical bills if you hurt them in an accident. It can also cover your legal expenses if you get sued.
Property damage liability: can cover the repairs of the other driver’s car if you’re at-fault in an accident. (Or other property you happen to damage.)
Collision coverage: can help you repair your car if it’s damaged in an accident.
Comprehensive coverage: can help you repair your car if it’s damaged by something other than an accident (for example, vandalism, fire, falling objects, animal strike.) It can also cover theft.
Uninsured/Underinsured motorist coverage: can help you if you’re hit by a driver who doesn’t have insurance or who doesn’t have enough insurance to cover the full cost of the accident.
Rental reimbursement: this coverage can help cover the cost of a rental car if your car is damaged in an accident and has to spend some time in the shop.
So, these are a few coverages and what they do. Having the right coverage is really important.
Get car insurance quotes.
If your parents are looking to get some car insurance quotes, we would be more than happy to help. Our team can help your family to get insurance. We like to make insurance easy and help people save money on their car insurance. Get in touch with our team by filling out our online form, giving us a call, or messaging us on LiveChat.