Benefits of Getting Auto Insurance for Your Young Driver
September 8, 2022
In almost all of the 50 states, teenage drivers are required to be insured to drive a car. Insuring your teenage driver gives you peace of mind, and it gives them the protection he or she needs in the event of an accident.
Benefits of Insuring Young Drivers
There are several helpful coverages that you receive being insured by an auto policy. These coverages are:
- Liability Insurance. Liability insurance can help cover some expenses when you’re the cause of the accident. Getting covered by this will handle the costs of repairing properties damaged by the accident, and to handling medical bills for injuries that have resulted from the crash.
- Personal Injury Protection. This coverage is essential, and most states even require this coverage in your car insurance. Costs associated with car accidents can quickly add up, especially if there are a lot of damaged properties and pedestrians involved. Therefore, you should consider getting this coverage to pay for you and your passenger’s medical bills.
- Comprehensive Coverage. This coverage is not essential, but it does have an excellent advantage for car owners. This type of coverage covers costs that aren’t related to accidents, like when your vehicle is stolen.
- Uninsured or Underinsured Motorist. This type of insurance coverage will cover you when you get in an accident, where the other involved motorist in the crash is either uninsured or underinsured.
- Collision Coverage. This form of car insurance pays for your car’s damages from the accident, and if you owe money on your car, you’ll be likely asked by the bank to invest in collision insurance.
Add-ons can help enhance your car insurance policy by providing extra protection that basic coverage doesn’t provide, such as:
- Roadside assistance. Roadside assistance can help if you need to tow your car, if you run out of gas, need to change a flat tire, or lock yourself out of the car.
- Gap insurance. If a covered event totals your vehicle, the insurance company will write you a check for the car’s value at the time of the accident. If you owe more on your auto loan or lease than the vehicle is worth, you’re responsible for paying the difference – unless you have gap insurance. Gap coverage can help pay the difference between your outstanding loan or lease balance and the value of your vehicle. Many plans also pay your comprehensive or collision deductible.
- New vehicle replacement. New cars begin to lose value as soon as you drive them off the lot. If your car is totaled, the insurance company will write you a check for the actual cash value of your vehicle at the time of the incident. Even if your vehicle’s only a few months old, it’s unlikely you’ll receive a check for the total amount you paid to purchase the car due to car depreciation. New vehicle replacement coverage helps protect against depreciation. If the insurance company declares your car a total loss, it will reimburse you for the amount it would cost to buy a new version of the car you own – not the depreciated value.
- Custom parts and equipment coverage. Most standard auto insurance policies cover custom equipment up to a certain dollar amount. But if you have a custom paint job or state-of-the-art sound system, the limit on your policy won’t be enough to pay for your repairs. Custom parts and equipment coverage adds protection for the upgrades that you add to your vehicle after it rolls off the lot.
- Rental car reimbursement. If you’re in an accident, you’ll most likely need a rental car, at least for a little while afterwards. Rental car reimbursement helps cover the cost to rent a car while your car is in the shop.
- Windshield repair. Full glass windshield coverage waives your deductible when you need to get your windshield, or any of the cameras or technology associated with your windshield, such as forward-collision sensors and automatic braking sensors, replaced.
Purchasing a Policy
There are two options for insuring teenage drivers: putting them on their own policy, or adding them to yours. Let’s break down the benefits of adding your teenager to your auto insurance policy, as well as the average cost of having separate policies versus sharing one policy.
Here are some of the benefits of having your young driver on your insurance policy:
- Control. Since you already own the policy, you can easily add and update coverages to make sure your teen driver has the right protection.
- Flexibility. If your household has multiple vehicles, your teenager will be insured to drive all of them.
- Convenience. You’ll only have to manage one policy.
A common question that many parents ask is, “Is having my child on my policy cheaper than having them on their own? Having your teen on a separate policy is rarely the cheaper option, however in the rare case that you have an expensive car that you don’t want them driving, having their own policy with just the car that you want them driving may be the best option for you and your family. There’s lots of variables to consider when quoting your teenager for an auto insurance policy, so premiums will often vary. Let’s break down the range of the cost of adding your young driver to your policy versus having their own policy:
Adding to your policy
$1,500-$2,500 per year
$4,500+ per year
Here are some ways to lower your premium for teenage drivers
Be a defensive driver.
Teenage drivers are eight times more likely to be involved in an accident three months after getting their license, compared to the previous three months having their permit. That’s why some insurance companies are hesitant on whether they should insure them or not. Taking defensive driving courses can help lower your insurance premium by up to 10%. As parents, it also might be a good idea to purchase a personal umbrella policy to protect all your assets in the event of an accident.
Add credits for security features on your car.
Make sure your agent or insurance company is applying discounts for all safety devices. Some examples include anti-theft devices like car alarms or safety features like airbags.
Look for student and good grade discounts.
Avoid texting and driving.
In Massachusetts, it’s against the law to text and drive. Refraining from texting and driving will not directly decrease your premium, but it will help you avoid accidents, which in turn will not raise your premium.
Most importantly, don’t get a cheaper price at the expense of good coverage.
In the event of an accident, go over a game plan with your teen as to how they should respond at the scene.
Check out our blog for some tips on how to respond to the scene of an accident.
At WebFirst Insurance, we want to provide your family with peace of mind before your new driver hits the open road. Consider contacting us to get a quote for your next insurance policy, and see how we can get you the best insurance for your needs.