INTRODUCTION TO AUTO-INSURANCE
- 1 INTRODUCTION TO AUTO-INSURANCE
- 2 PREPARING TEENS FOR DRIVING
- 3 RULES OF THE ROAD
- 3.1 New driver laws:
- 3.2 What to do if a police officer pulls over your teen driver:
- 3.3 What to do in case of an accident:
- 3.3.1 Pull of the roadway, turn on hazard lights:
- 3.3.2 Call 911:
- 3.3.3 Exchange information:
- 3.3.4 Don’t make any admissions of fault:
- 3.3.5 Take pictures of everything at the scene of the accident:
- 3.3.6 Get statements from witnesses:
- 3.3.7 After everything has calmed down and everyone has gone home, decide whether to file a claim and whether to call your insurer:
- 3.4 Underage drinking and driving:
- 4 GETTING STARTED: AN EASY PRIMER
- 5 ADDING A TEENAGER TO YOUR AUTO-INSURANCE POLICY
- 6 TEEN BUYING THEIR OWN POLICY
- 7 AUTO-INSURANCE FOR COLLEGE STUDENTS
- 8 LEARNER’S PERMIT INSURANCE
- 9 INSURING MY TEEN DRIVER: FAQs
- 9.1 Will a teen driver pay more for auto-insurance than an adult?
- 9.2 Will my premium increase because I added a teen driver?
- 9.3 What can teens do to reduce their rates?
- 9.4 If my teen goes away to school, do I still list them on my policy?
- 9.5 Is my teen eligible for a student discount?
- 9.6 Does driving a safer vehicle help teens get more affordable auto-insurance?
- 9.7 Is it better to add a teen to my policy or get them a new policy?
- 9.8 When does a teen need auto-insurance coverage?
- 9.9 Do I have other options if adding my teen to my policy is too expensive?
- 9.10 Does my teen need the same auto-insurance coverage I do?
The unpredictability of running into dangers by a teen driver is considerably high when compared to an experienced and meticulous driver. Furthermore, the gravity of the situation increases when the parents and the teen drivers are unaware of those risks and its causes. At that point of time, however, the issue of High auto-insurance premiums become least of the concerns of the parents when their children are involved in a serious accident. The statistics from here would be efficient to keep teens and parents observant about safe driving, though, each year the trend continues.
According to the reports of CDC ( Center for Disease Control), teen drivers are three times more likely to be involved in an accident than the drivers attaining an age of twenty or above. Therefore, the scale of auto-insurance premiums for teenagers have gone notably high. Fortunately, the CDC and other agencies like US have developed productive and affordable strategies to keep the teens safe on the road.
PREPARING TEENS FOR DRIVING
Driver’s education courses and programs:
The driving habits have already been embodied in the minds of adult drivers. Therefore, the parents might not be potent enough in teaching the driving skills to their children as compared to the professional driving instructor.
Tip for parents: The department of motor vehicles might offer educational courses and materials to help. Also, private lessons are easily available across the country. It is wise to learn from a well-established driving instructor, as anonymous instructors might impart only few long-lasting skills.
Learner’s permit and driving with parental supervision:
Many new drivers are required to obtain a learner’s permit before they can apply for their license as per the guidelines laid by most of the states. Also, majority of the states demand a certain number of parent-supervised driving hours logged and recorded by the parent.
Tip for parents: Be calm and composed while teaching driving skills to maintain a good environment. Likewise, it is imperative to discuss the errors and successes for better driving.
Websites, mobile apps and car accessories for safe driving:
There are some apps which monitor the safe driving by the teens. However, these apps operate on a simple premise: lock down the basic functions of the phone such as browsing, calling and texting until the car is at a standstill. Additionally, there are websites which offer entertaining yet fruitful videos and games to enrapture the attention of the teens and also to educate them about safe driving.
Tip for parents: Be sure to ask your insurer about GPS units, dashboard cameras and other gadgets that can track your teen’s driving. These devises are easily available online which not only inform the parents through text or email, when the teen driver strays a certain distance from home but also, notifies about the excess speed limit or erratic driving or a happening of an accident.
Safe driving pledges and contracts:
Create a safe driving contract with your teen driver as it ensures their acknowledgment towards road safety. Setting down specific guidelines and agreements will keep them aware of right and wrong and will further set specific consequences in case of contract-breach. In order to view a sample contract, contact US
RULES OF THE ROAD
It is important for teen drivers to be acquainted to both the rules and regulations around operating a motor vehicle as well as the unwritten rules of the road for safe driving habits.
New driver laws:
Most of the states impose curfews on teen drivers with an age 18 or below, at weeknights or weekends.
Seat-belts are necessary while driving and therefore, it is required by the drivers and passengers to wear them at all points. To ensure more safety and awareness, certain states issue tickets to both unbuckled passenger and driver. Therefore, in order to avoid a hike in auto-insurance premiums after such a violation, make sure your teen and his friends are buckled up.
What to do if a police officer pulls over your teen driver:
Rehearse the procedure in advance:
Walk through the following steps with your teen to prepare them for getting stopped by an officer.
Keep all current registration and insurance cards in an easy to find place:
A brightly colored envelope or pouch in the glove box works well.
Keep hands on the wheel and stay clam:
In a situation where your teen gets pulled over, certain actions done by your teen can lead him into the suspect list of the police such as moving around or shuffling in his seat or fidgeting inside the car. The officers are trained to suspect the worse such as weapons or drugs or illegal materials inside the car. To avoid circumstances as such, make sure your teen calmly waits for the officer to approach the car and when the officer asks for license, auto-insurance, and registration, tell the officer “I’m going to open the glove-box for the documents” before doing so.
Be polite, give brief answers and only speak when spoken to:
Most teens have difficulty acknowledging their mistakes, and arguing with a police officer over an “unfair” ticket is not the best way to get off with a verbal warning.
Apologize and say “please” and “thank-you”:
In most cases, an officer has the discretion to give a driver a ticket, written warning, or verbal warning. A simple apology and common courtesies can go a long way towards keeping your teen driver’s record clean.
What to do in case of an accident:
Pull of the roadway, turn on hazard lights:
Park at a safe spot on the side of the road or in a parking lot before exiting the car. Make sure to never stop in the middle of the road or intersection.
Call 911 or the local police department, even in the case of minor accident. A police report is highly invaluable to document the case later on.
All the information such as the name, address, phone number, driver’s license number, license plate, vehicle year/make/model for all drivers involved in the accident and any witnesses or passengers. For the other driver, also get their insurance company, policy number, and claims phone number, which can be found on their auto-insurance card.
Don’t make any admissions of fault:
Always leave it up to the police, witnesses, and insurers to say who had the right of way and who was at fault.
Take pictures of everything at the scene of the accident:
All involved vehicles, license plates, the whole road or intersection, a wide angle shot showing the whole scene, as well as close-ups of the damage to vehicles.
Get statements from witnesses:
Do make sure to write down, to record on video or audio and to keep track of the witnesses’names and phone numbers as they can be later called for official statements if needed for a legal dispute.
After everything has calmed down and everyone has gone home, decide whether to file a claim and whether to call your insurer:
Determine whether you can work with the other involved drivers to handle it off auto-insurance to keep your teen driver’s rates low. Also, report all damage, repairs, and expenses in case you need to open up a claim should the cost of repairs skyrocket.
Underage drinking and driving:
A serious risk:
According to the reports of CDC which states that“Teens are less likely than adults to underestimate dangerous situations or not be able to recognize hazardous situations”.
Guilt by association:
In certain states, if a teen driver is transporting an underage passenger who has been drinking, both the passenger and driver can be ticketed for underage drinking, even if the driver is completely sober.
Have a serious talk with your teen:
Build a healthy and supportive relationship with your children so that they can trust you and call you to get a ride if their friends have been drinking. Make sure your teen never gets on a ride with an intoxicated friend or instead drive while drunk.
GETTING STARTED: AN EASY PRIMER
Know your timing:
Your existing auto-insurance company will contact you through the information you have registered when you first signed up your policy. In any case, if they don’t contact, it’s your duty to alert your carrier once your teen attains a learner’s permit to talk through the options and to give yourself time to compare every auto-insurance company. In general, permitted drivers are automatically covered as a part of the parent or guardian’s policy with no action needed on your part, but when they do have a true driver’s license, even provisional, they will need to be on your policy or get their own.
Get ready to compare quotes:
Insurance companies all across the U.S. except Hawaii, use age and experience as a rating factor. In that way, adding a teen raises the cost anywhere from 100% to more than 200%. For more information, contact US
Understand available discounts:
When you add a teenager to your auto-insurance policy or they get their own, auto-insurance companies don’t actively communicate what discounts are available to you. You should know how to use the discount guide. Talk to US to know more.
ADDING A TEENAGER TO YOUR AUTO-INSURANCE POLICY
Including a teen to your policy is the best yet cheapest way to get your teen insured. Though, it is costly, but you can certainly save if you choose the best auto-insurance companies for teens.
How much will adding a teen to my auto-insurance cost me?
The circumstance would be different every time, but to get a solid number let’s compare rates in 10 zip codes in each state. The family profile owned a 2014 Honda Accord driven by a 40-year old man buying full coverage. Then add a 16-year old teen to the policy. Here’s what happened:
- The average household’s car insurance bill rose 152%.
- A teenage boy was more expensive. The average bill rose 176%, compared with 129% for teenage girls.
- New York rates rose the most, more than 200%.
The reason behind the hikes: Teens crash at a much higher rate than older drivers – the risk is four times as much. According to the federal Centers for Disease Control and Prevention, the worst age for accidents is 16. They have a crash rate twice as high as drivers that are older.
Costs also vary widely by insurance company, which is why it’s better to shop for auto-insurance.
How to add a teen to your policy?
If you are choosing a new auto-insurance company after shopping, it would be best if you had already added the teen to the policy when first signing up. However, if you hadn’t or/and want to add a teen to your current or new policy, then follow the required procedure:
- Call your auto-insurance company if they haven’t contacted you.
- Know and talk about every possible changes to your policy in detail that includes minimum and maximum coverage and also, insist on hearing the ins and outs of each and every discount as these can add up to considerable savings. If you are also adding an additional car, be sure to ask about a multi-car discount.
- Make sure to ask information about your teen’s driver’s license and on new vehicles.
- Decide carefully and calmly. Do make sure that your teen isn’t driving on a full license without being formally added to your policy or their own.
If my teen gets a ticket, will it raise my rates?
The answer is positive. Once together on the same policy, all driving records, including your teen’s, affect premiums, for better or worse. You share in the discounts, and you shall also share in the risk.
TEEN BUYING THEIR OWN POLICY
Companies can sell directly to teens, but according to state laws, when it comes to a teen’s ability to sign for insurance, a parent may have to co-sign and it’s hardly cheaper. In fact, your teen will likely have a higher premium compared to adding a teen to a parent or guardian policy.
Howbeit, there are cases where it might make sense for a teen to have their own policy. Progressive cites two:
- You have a luxury sports car. On a single plan, all drivers, including the teen, are insured against all cars.
- The teen is eager to be financially independent.
Auto-insurance is different for a first-time auto-insurance buyer, but it’s a great time to start a relationship with an insurance provider. For more information, talk to or request a quote here
AUTO-INSURANCE FOR COLLEGE STUDENTS
The procedure could be the same for the college students as it is for the teens. However, there is the possibility to save. If the student plans to leave their car at home and the college is more than 100 miles away, they could qualify for a “resident student” discount or a student “away” discount. These discounts can reach as high as 30%.
Also, do well in school because that could lead to a good student discount. Both discounts will require you to contact your insurance provider so they can begin to apply the discounts.
LEARNER’S PERMIT INSURANCE
You can get insurance with a permit, but most auto-insurance companies include the permitted teen on the parents’ policy without any action. However, the teen should be added to the parents’ policy or get their own policy when they receive their driver’s license. Talk in the chat for more information.
INSURING MY TEEN DRIVER: FAQs
If you are a new teen driver, or the parent of a new teen driver, the process of obtaining the right auto-insurance for teens can be a work of dilemma. This page will thus, thoroughly guide you through some of the most commonly asked questions about auto insurance for teens.
Will a teen driver pay more for auto-insurance than an adult?
According to statistics of the Center For Disease Control and Prevention (CDC), teen drivers of 16-19 years of age are three times more likely to crash than older drivers. They exhibit risky behavior which increases their odds of meeting an accident. But as they grow in age, the rates begin to level out because the accident risk decreases.
Will my premium increase because I added a teen driver?
Your rates will definitely increase by adding a teen driver, however, in most cases auto-insurance rates are typically cheap for teens when they are added to an existing auto-insurance policy rather than when they purchase their own policy.
What can teens do to reduce their rates?
The key factor in calculating insurance rates is responsibility. Teens, categorically can improve their chances of finding auto-insurance rates through one of these mediums:
- Maintain good grades: Good student discounts are often given to students who maintain at least a B average.
- Clean driving record: Maintaining a clean driving record free of accidents and violations. Parents can also promote safe driving by establishing some ground rules such as for cell phones, passengers and car use.
- Driver’s education course: Complete an approved driver’s education course.
When getting auto-insurance for teens, you can also get quotes from different insurance providers, as rates will vary from company to company. Or you can easily compare auto-insurance rates online.
If my teen goes away to school, do I still list them on my policy?
Policy details and requirements will vary among auto-insurance companies and states.
If your teen comes home for the summer, you must list them on your policy. Also, if your child is heading to a school that is a certain number of miles away from home, they may qualify for a resident student discount, which can significantly lessen your rates.
Even if your child comes home for short periods of time or vacations, it may not be necessary to list them on your policy. This will depend on your carrier and your state’s laws.
Is my teen eligible for a student discount?
Many auto-insurance companies offer good student discounts to reward teens that do well in school. Statistically, good grades equal responsible driving and lower risk. The exact amount of the discount depends on the insurance provider.
In order to qualify for a discount, must remember that the teen:
- Is under 25 years old.
- Is enrolled in school full-time.
- Has a grade point average of at least 3.0.
Does driving a safer vehicle help teens get more affordable auto-insurance?
Age qualifies the type of car you must drive. But, one must avoid sports car designed for speed as well as trucks and SUVs. To achieve best auto-insurance rates, you must follow:
- Enhanced safety measures.
- Crash protection.
- Larger body.
Is it better to add a teen to my policy or get them a new policy?
The auto-insurance is cheaper for teens when they’re added to their parents’ policies. However, it is smart to get quotes for both, as many factors can come into play. For example, if your teen has a very low-value vehicle, it might be cheaper for him to get his own policy and skip certain optional coverage, such as collision and comprehensive.
When does a teen need auto-insurance coverage?
You should ask this question to your insurance agent when your teen starts learning to drive. The laws are different from state to state. The majority of car insurance companies require that anyone with a driver’s license in your household be insured. Teens with learner’s permits often don’t need to have their own insurance; however, your state’s laws may differ.
Do I have other options if adding my teen to my policy is too expensive?
All drivers need auto-insurance. That is the law. Your only other option is to put the teen on a separate policy; however, this may be more expensive because certain discounts that apply on your policy may not apply to his (e.g., multi-car, occupational discounts, etc.).
Does my teen need the same auto-insurance coverage I do?
Teens are legally required to carry the minimum level of insurance required by your state. Other types such as comprehensive or collision insurance are optional, but may be required to get a car loan.