The terms “cheap auto insurance” and “teenage drivers” rarely go hand-in-hand. That’s because teen drivers tend to be the most accident prone on the road, according to nationwide statistics. The higher risk they pose to auto insurance companies naturally translates into higher premiums, but that doesn’t mean you have to settle for the first thing that comes along. With a little knowledge of how auto insurance for teen drivers works you’ll be equipped to find the best policy at the best price.
Auto Insurance for Teenage Drivers
When we talk about teen drivers and their insurance needs we are talking about four different groups of kids:
- those under the age of 18 still driving with their learners permit
- those under age 18 with a junior license
- those over the age of 18, living at home or at college with full driving privileges
- those over the age of 18 living on their own with full driving privileges
Under 18 with a Learners Permit
For parents whose teen children are still operating on a learners permit, the standard insurance policies they currently have will cover those teenagers without having to change them in any way. As long as your child possesses a learner’s permit, and is under the age of 18, you don’t even need to inform your insurance company in most cases.
The one thing you have to be careful of with a learners permit drivers is to make sure that they do not violate the terms of their permit. Doing so could result in your insurance company denying a claim if your teenager is involved accident. At that point it doesn’t matter whether you have cheap auto insurance or more expensive insurance, you’ll be left paying the bill out of your own pocket. You also risk having your insurance company drop you if they feel you can’t be trusted with your teen driver.
Under 18 with a Junior License
The rules regarding junior licenses vary throughout the states. But generally speaking, a teen driver under the age of 18 who passes his or her road test will be granted a junior license which will be valid until the child’s 18th birthday. At that point the junior license is converted to a senior license with full driving privileges. Both types of licenses have very specific implications when it comes to your auto insurance.
A teenager with a junior license will still be covered under his parent’s insurance unless some special circumstance exists. However, it is the legal responsibility of the parents to inform their insurance company that their child has earned a junior license. If a parent fails to do so the insurance company does have the legal right to refuse any claim brought on behalf of the teenager. Such refusals are not the norm, but they are possible.
Over 18 and Still Living at Home
If your 18 or 19-year-old has a senior license but still qualifies as “living at home” you won’t need to send him looking for cheap auto insurance quotes right away. He’ll be able to remain on your policy until age 26 (in most states) as long as he meets the requirements of living at home. To be considered a living at home, your child must be physically residing in your house or living in a dormitory setting at an out-of-town school. If he is attending an out-of-town school, your home address must be is official address of residence in order to qualify.
If your child is going to school out of town but resides in off-campus housing not officially tied to the college or university, he may be subject to that state’s residency requirements after being there for so many years. You’ll have to check with the state where your child is attending college, but in most cases you probably won’t have anything to worry about as long as he remains in school.
Over 18 and Living on His Own
Teen drivers over the age of 18 living on their own are also responsible for purchasing and maintaining their own auto insurance. For them, getting cheap auto insurance is a high priority due to the fact that they pay among the highest rates in the country. Single males between the ages of 18 and 25 are hit especially hard. They won’t see a significant reduction in what they pay until they get married or turn 26.
If you’re curious as to why this is you need only look at crash statistics compiled by any number of federal agencies. Over the course of the last 30 years statistics consistently show that young male drivers are responsible for the largest share of car crashes. Furthermore, they are also responsible for the largest percentage of deaths relating to such accidents. Teenage girls between the ages of 18 and 25 come in second, followed by senior citizens over the age of 65.
Keeping Your Auto insurance as Cheap as Possible
If you have a teenage driver with full driving privileges living in your household, there are two key things you can do to ensure your rates stay as low as possible. The first is to keep an eye on your teen’s the driving practices and insist that he always dry safely and legally. Nothing drives up insurance rates more quickly than accidents and violations. The second thing you can do is more practical than behavioral; it involves which drivers operate which vehicles.
In other words, when you have multiple drivers in the same household your insurance company assigns each one to a family car. You can keep your rates lower by making sure your teen driver is assigned to the least expensive car. The same can be said about mom and dad if one of them has a poor driving record. By matching the safest drivers with most expensive cars and the risky drivers with the less expensive ones, you’ll keep your rates down.
At the end of the day, cheap auto insurance is all about information. The more you know the better equipped you are to search for the best policies.
Low Cost Auto Insurance is all in the Fine Print
Insurance companies are businesses, plain and simple. They do what they do in an effort to make a profit and, like any business, have to position themselves in such a way that they can make money while still attracting customers. They have an obligation to provide certain cover in order to make legal requirements. However, from there they can add or remove certain benefits that either make policies too expensive for the general consumer or prove to no longer be profitable.
Low Cost Auto Insurance
In practical terms, low cost auto insurance is often cheaper than competing policies due to the cover offered. There are other factors, such as introductory offers, which should also be considered, but in general terms the driver should take care to familiarize themselves with the fine print on their policy.
Some things to look out for when considering a policy as a whole include:
• The quality of repairs. While most auto insurance covers the physical repair of a damaged vehicle, different companies offer varying levels of service. A cheap auto insurance policy may not guarantee the replacement of damaged parts with genuine auto parts from the manufacturer. While this is not a problem for some, others will have more confidence in their vehicle if it is repaired to the maker’s standards.
• The location of repairs. Many insurers keep their costs low by working with their own preferred repair shops. These shops give companies lower prices in return for repeat business. However, the shop is a business too, and drivers must ensure that low cost doesn’t mean low quality. Smaller insurers specify the shop in the fine print, while larger companies offer a selection. Find one you trust and see whether they are approved for use.
• The deductible. While most drivers will encounter the deductible before reaching the fine print, this amount covers a specific value and can vary based on certain conditions. These potential alterations are then specified lower down in the policy information. Every driver knows that a higher deductible means lower premiums, but keep an eye out for any special circumstances.
• Consider your situation. Some insurers break down the cost of cover in their small print, indicating why your policy costs what it does. This allows drivers that take the time to read it to understand what they may need to do to improve their quote in the future.
• Take note of exclusions. As alluded to previously, low cost auto insurance can often mean that certain aspects of cover are not included. This are listed in the fine print as exclusions and specify exactly what the insured party is not covered for. If something stands out as being problematic, it can be best to contact the insurer and request a quote that includes the missing cover, or move on to another quote completely.
The fine print makes a policy and directly affects the price. Companies sell the majority of their insurance with bold advertising, but the small text at the end is what really matters when deciding whether a certain type of low cost auto insurance is the right insurance.
The holiday season is coming up, and many people have already started gift shopping. But Christmas time means more than just buying for others – the holidays are a good time to pamper ourselves or get something we really need. If you don’t have car insurance, why not give yourself the gift of cheap auto insurance for Christmas?
Cheap Auto Insurance for Christmas
If you don’t have auto insurance, you can’t legally drive your car in any state. However, because of this law, many people end up going with the first insurance company that comes along because they’re in a hurry to drive. This is especially true of younger drivers who no longer quality to be on their parent’s auto insurance. Once they learn they must get their own insurance, they often just go with the same company their parents have. However, this isn’t always the cheapest option. In fact, these drivers may end up paying a lot more than they should.
So why not save yourself a little money this Christmas season and do some insurance shopping? One thing people don’t realize is that there is no penalty for changing insurances – it will not impact your insurance payments or your credit if you change insurances every year. The only downside is that some insurance companies do actually give discounts the longer you stay with them. Most start this discount after three years, so being loyal may reward you. However, if you can get a much better rate somewhere else, don’t be afraid to give up this discount.
There are other things to check into when you’re shopping for insurance. You can often get cheaper auto insurance if you get your auto, home, and life insurance from the same company. You usually only need two policies for a discount, but you might get an even bigger discount if you get three or more. Bundle your auto, home, boat, life, and any other policies you have to save a nice bit and make it easier on yourself by dealing with only one company.
While changing car insurances does not impact your credit score at all, your credit score certainly impacts your auto insurance costs. If you have bad credit, you may pay anywhere from 20% to 50% more than you would if you had good credit! If you want to gift yourself with cheap auto insurance, make sure your credit score is good. If it’s not, you may have to work on it first, then more on to your auto insurance.
There are a few other things you can do to make your auto insurance cheaper. For example, you can drop some coverage if you’ve paid off your car. You can also raise your deductible, although that can cause you some trouble if you later get into an accident.
Finally, before you make the commitment, you may want to ask around or even check online to make sure you’re going with a good insurance carrier. Some states even make a list of complaints available, so be sure to check their ratings before you sign.
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