Cheap Car Insurance for Teenagers


Cheap Car Insurance for Teenagers

Finding cheap car insurance for teenagers is not easy but if you understand the risk factors insurers take into account, know a little bit about which auto insurance coverage types teenagers need and which they can forgo and are knowledgeable about premium discounts insurers offer you will be able to find affordable car insurance for teenagers.

Risk Factors that affect cheap car insurance for teenagers

Younger, inexperienced drivers are statistically at a high risk of being in an accident. Higher risk means higher premiums. Young male drivers are considered the highest risk drivers of any age group and all other risk factors being equal will pay the highest auto insurance premiums.

Other factors will also figure into teenage drivers insurance costs including where they live. If drivers live in an area where there is a high likelihood of accidents, vandalism or theft their auto insurance costs will be higher.

The make and model of vehicle being driven by the teenage driver will also impact the insurance rate. If the insured vehicle has a high safety rating, is less expensive to repair and is not built to go fast the insurance rates will be lower than if the insured vehicle is considered to be less safe in an accident, more expensive to replace and is considered a high performance vehicle. Insurers also consider if the vehicle is attractive to thieves. Any factor which increases the insurers risk of an accident or other damage to the vehicle or which increases the insurers costs if a claim is filed will increase insurance rates.

You can lower auto insurance premiums if the insured vehicle has extra safety devices and anti-theft features. Parking in a garage at night also lowers risk of storm damage, vandalism and theft and therefore lowers premiums.

Especially helpful to young drivers are good student premium discounts. Full time students with a B or better grade point average are considered a better risk than students with lower grades.  Students who can document their good grades will pay less for their auto insurance.

Often young drivers will have also completed a safe driver-training course. If the insurer approves the organization that offed the course the teenage driver may be eligible for a safe driver-training premium discount on their auto insurance premium.

Teenage drivers may qualify for a low mileage discount since many teenage motorists drive fewer miles than the average motorist. Driving less means you are less likely of being in an accident and therefore are a lower risk driver. Lower risk results in lower auto insurance costs.

Most young drivers will not have a driving record with citations or accidents which is a positive factor when seeking cheap auto insurance however teenagers will generally not have an insurance claim history or a credit history which generally means these factors will not work in favor of the young drivers in their search for cheap car insurance for teenagers.

If the teenager is driving a family car it will usually be less expensive to add the teenager as an additional driver on their parents policy than to obtain their own auto insurance policy. Obtaining a separate policy will however allow the teenager to begin developing his or her own auto insurance history which may, if the history is accident and claims free help in obtaining affordable insurance in the future. Check out the cost of both adding a teenage driver to a family auto insurance policy and the cost of purchasing a separate auto insurance policy for the teenage driver to determine which is the best deal in your unique situation.

Coverage impacts auto insurance costs

The types of auto insurance coverage, the limits of the coverage and the deductible established all affect auto insurance costs. Teenage drivers like all drivers want to have sufficient auto insurance coverage but do not want to pay for more insurance coverage than necessary.

All motorists need to be aware of insurance coverage required by their state. Check your state’s website to find the insurance coverage required by your state and the minimum limits for each type of coverage required by your state.

Driving without the minimum required insurance is not an option. If a driver is stopped for a traffic violation or is in an accident and does not have proof that they have the minimum required insurance coverage they risk losing their drivers’ license, fines and penalties.

Most states require minimum amounts of liability insurance. There are two types of liability insurance – bodily injury liability and property liability insurance. Bodily injury liability insurance pays for the medical and related expenses of others injured in an accident the insured is determined to have caused. The minimum bodily injury insurance required is usually quite low and often motorists determine it is in their best interests to carry in excess of the required minimum.

If you cause a serious accident and the medical and related expenses for others exceed the limits of your insurance policy you will be personally liable to the costs in excess of the insurance policy. Personal liability for substantial medical expenses can create a financial hardship for years. Bodily injury liability insurance is not a type of insurance drivers want to skimp on just to save a little on their auto insurance premium.

Property liability insurance pays for the repair or replacement of others vehicles involved in an accident you cause. The state required minimums for property liability insurance are generally quite low. Most drivers decide to purchase more than the required minimum to avoid personal liability for damages that exceed their property liability insurance limits.

Uninsured and underinsured motorist insurance covers costs you or your car may incur if you are in an accident where the driver at fault has no insurance or the driver’s insurance is insufficient to cover the full costs. A minimal amount of uninsured motorist insurance is required by some states. Even if not required uninsured and underinsured motorist insurance is probably a good investment if you do not have a health insurance policy that will cover your medical costs if you are in an accident.

Medical and personal injury insurance cover costs associated with injuries you may sustain in an accident. A few states require drivers to carry a minimum amount of medical insurance. Many teenage drivers’ health insurance needs are covered on their parents’ health insurance policy. Teenage drivers who already have health insurance coverage may decide that adding more than the required minimum of medical insurance to their auto insurance package will only duplicate their existing health care coverage benefits and will not provide additional benefits. If after reviewing their existing health care policy if teenage drivers are comfortable not adding additional medical coverage to their auto policy they will be able to lower their auto insurance costs.

Cheap Car InsuranceCollision and comprehensive insurance are optional types of auto insurance coverage in all states. Collision and comprehensive insurance pays for damage to the insured vehicle. It is you decision whether to purchase or forgo collision and comprehensive insurance.

Before you decide to forgo collision and comprehensive make sure you are comfortable you are able to cover damage to the insured vehicle or replacement of the insured vehicle from your own funds. Many teenagers are driving less expensive used vehicles and may find that the cost of collision and comprehensive insurance for a year exceeds the value of the vehicle. If this is the case it makes financial sense not to purchase collision and comprehensive insurance.

If, however, the vehicle the teenage driver is insuring is financed through a loan maintaining a collision and comprehensive auto insurance policy may be a requirement of the loan agreement.

If teenage drivers decide to add collision and comprehensive insurance to their auto insurance package they can lower the cost by selecting a higher deductible. A deductible is the amount the insured pays from their own funds if they file a claim before the collision and comprehensive insurance pays the remainder to the cost up to the limits of the policy.

Collision insurance covers the costs of repairing your vehicle if it is damaged in an accident with another vehicle. Comprehensive insurance covers the costs from damage caused by other than a collision with another vehicle. Comprehensive insurance is not comprehensive. The damage is only covered if is occurs from risks enumerated in the comprehensive policy. Read comprehensive polies carefully to determine if the policy will cover the risks you are most concerned about.

Roadside assistance, towing and car rental insurance coverage are often types of auto insurance coverage drivers will decide they can do without if it lowers their auto insurance costs.

Shop around for cheap car insurance for teenagers

The first step everyone should take when looking for the best deal for car insurance is to shop around among various insurers and determine which insurer is offering the least expensive policy for the insurance coverage and limits you have determined meet your unique needs. Shopping around for cheap car insurance for teenagers is always a good way to lower auto insurance costs.

Today it is easier than ever before to see what the many insurance companies selling auto insurance will offer to meet your insurance needs and budget. There are free online auto insurance quote sites where consumers can submit a single request form asking for price quotes for the types of auto insurance coverage for which they are looking. This website offers free online auto insurance quotes from various insurers.

After submitting your free auto insurance quote request to the site we will share your request with multiple insurers including the larger nationally know companies as well as smaller regional and specialized companies. The responses will be sent to you for your review and determination which of the insurers offers the best auto insurance deal in your unique situation.

Once you have submitted your request and received your quotes review them to determine which insurance company offers best meet your insurance needs and your budget.

Select two or three quotes that are the most affordable and check with those insurers to see if you qualify for any premium discounts to further lower your costs.

Ask the insurers on you list about good student discounts and safe driver training discounts. Ask what documentation you need to provide to the insurer to receive the discount. Ask if the insurers will consider you as a low mileage driver and further lower your auto insurance premium.

Do not forget to ask about affiliate discounts the insurers may offer. Affiliate discounts can be very beneficial in reducing the cost of auto insurance. Affiliate discounts are available to members of fraternal, social, professional or other organizations. If you do not ask about affiliate discounts you may miss out on premium savings.

Check to make sure the insurers you are considering have a good reputation for customer and claims service

The best cheap car insurance for teenagers is not a good deal if the insurer offering the insurance is not interested in their customer’s best interests. You need to check out the customer service reputation of the insurers on your shortlist.

Start by asking family and friends if they have had auto insurance with an insurance company you are considering. If they have had a policy with the company ask about their experience with the company. Were the company representative helpful. Did they have to file an insurance claim? If they filed a claim was the claim processed efficiently and were the repairs to their satisfaction.

It is also often useful to check with the owners or employees of local auto body repair shops. Most auto body repair shops will have done claims repairs for multiple insurers. Often local auto body repair shops will be willing to share their opinion of which insurers are easy to work with and provide their customers with quality service and claims repairs.

J D Powers and Associates conduct an annual survey of insurance customers. The survey asks the consumers to rate their insurers. The survey asks about the customers’ level of satisfaction with the types of insurance the insurer offers, the cost of the insurance, the claims processing service and customer service provided by the insurers’ representatives. Often highly rated insurers publish the J D Powers ratings on their webpage. Consumers can find all J D Powers ratings on the J D Powers website.

Most state agencies responsible for licensing insurers to sell auto insurance in have web pages with information about licensed insurers including consumer complaints filed with the state against the insurers. If an insurance company you are considering purchasing insurance from has a high number of consumer complaints filed against them compared to the number of policies they are issuing in your state proceed with caution. A relatively large number of complaints are a good indication the company has problems with its customer and claims processing service.

While most insurance companies licensed to sell auto insurance are going to be financially stable it is easy to check the financial strength of insurance companies from which you are considering purchasing insurance. Standard and Poor’s and AM Best both rate insurers’ financial wellbeing. You can find their ratings on their websites. You do not want to purchase insurance from an insurance company with less than a “good” financial rating and preferably want to purchase your auto insurance from a company with an “excellent” financial rating.