3 Important Car Insurance Facts For Teens
Posted on: 19 October 2015
You've studied the DMV manual, you've completed a driver's ed class, you've spent long hours in the driver's seat next to a nervous parent, and you've finally passed your test and been awarded a license. Does that mean you can feel free to hop behind the wheel of the nearest car and hit the road alone? Not so fast. Before you can take off on your own, you need to be insured. Even if you're going to be driving your parents' already insured car, if you're not listed on their policy as a driver, then you're not legal to drive. Take a look at what you need to know to get behind the wheel legally.
Getting Your Own Policy Should Be A Last Resort
The most common route to getting insurance as a teenager is to simply be added to your parents' policy. This makes it legal for you to drive any car on the policy, whether it's the family car or a car purchased specifically for you. However, in the event that your parents don't drive or prefer not to add you to their policy, you can get your own insurance.
Getting your own insurance as a teenager is no picnic. Insurance for teenagers is more expensive than insurance for older adults. This is because teenagers are much more likely to get into accidents. Sixteen-year-olds have more crashes than any other group of drivers – one in five of them has an accident during their first year of driving. As a teen, you're a bigger risk for the insurance company, so they are going to charge more to insure you, no matter whose policy your on. But with your parents also on the policy, their years of driving experience balance out your inexperience, and you're likely to get a better rate. You'll pay much more for your own policy.
What's more, not all insurance companies are willing to insure a teen driver on their own policy, so you'll have to shop around. You and your parents should also both be aware that as long as you're a minor, they may be held liable for damage you cause even if you have your own insurance policy. For many families, this defeats the purpose of having a teen get their own policy. You can still do it if you need to – for example, if your parents simply don't drive and don't have their own insurance – but it should be a last resort.
You Can Get Discounts
Whether you're on your own or you're going to be on your parents' policy, you can reduce the cost of your auto insurance by looking for discounts that apply to you. Don't be fooled into thinking that you can get cheap insurance – insurance for teens is always going to be pricey compared to adult policies. But any money you can save is worthwhile.
One of the most popular ways for teens to get a discount is by taking drivers' ed. If you haven't taken a driver's ed program, you should sign up for one, even if you already passed your licensing test. Public schools often offer drivers' education for free or for a nominal fee, so signing up for a class at your school is probably the best way to get an insurance discount. Many insurance companies also offer discounts for good grades. Study hard and stay on the honor roll, and bring your report card with you when you sign up for insurance. Having a job and owning a vehicle in your own name are also factors that can bring insurance rates down for teens.
Insurance Follows The Car, Not The Driver
If you live in a multi-car household and you go the more common route of having yourself added to your parents' insurance policy, you should know that the insurance follows the car, not the driver. For this reason, it's important to designate drivers to specific cars on the insurance policy.
For example, if you have your own car, your parents would designate you as a driver on your car only, but not on theirs. If you don't have your own car, your parents should designate you as a driver on whichever car is safer and less expensive to insure. So, if mom owns a sedan and dad owns a sports car, most of the time it's preferable to insure you on the sedan. This will keep costs down, because the sedan costs less money to insure no matter who's driving it. If you're going to be picking out your own car, choose one that has high safety ratings and security features like an alarm system. This will help you get the best rates.
It's important that you participate in discussion with your parents about the best way to insure you now that you can drive. Your parents may want you to pay part or all of your insurance costs yourself, or they may choose to pay it all themselves. Either way, understanding how insurance works and how to get the best deal is an important thing to learn now, so that you're ready to handle it on your own in a few years.
Talk to a professional insurance agency, like those found at http://www.unitedsecurityagency.com, for more information on rates for teenagers and the possibility of getting your own insurance.
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