May 1, 2012

How Insurance Covers Teen Drivers Who Are Learning To Drive

Automobile insurance is designed to cover drivers of a vehicle within the household. This includes teen and student drivers. Since teens are notoriously the most dangerous drivers on the road, statistically speaking, it's imperative that one looks at how insurance covers these young drivers. When shopping for insurance quotes, coverage is more important than ever before.

In most states, there is no requirement that teen drivers get more coverage than anyone else. However, in states like California and others, if a teen driver is going to be on a policy, higher levels of liability coverage are required for the first few years of obtaining a permit. This is done for everyone's protection in regards to finances.

Any accident, even with insurance, can be expensive. First, there's the deductible that needs to be met. Many people choose a high deductible to keep premiums low. However, if a deductible is too high, it may not be easy for a person to come up with the money in order to get the necessary vehicle repairs made. When teens are in the house, it may be better to choose a lower premium.

Second, liability limits need to be considered. Going above the state minimum can be smart. If a teen damages property to the extent of $40,000 and property liability coverage is only set to $25,000, the difference is the responsibility of the policyholder. The levels can always be reduced, but when a teen is learning to drive, automobile insurance should reflect that fact appropriately.

If a teen driver gets into an accident while they are still learning to drive, they will most likely be found at fault. This can have a significant impact on insurance premiums when it comes time for renewal. However, some insurance companies have riders that can be purchased that are a first accident forgiveness clause.

When a rider of this nature is purchased, it allows an insurance company to look the other way in regards to the accident. The accident will be covered up to the liability limits, however it won't cause the premium to go up. This is very important when there's a teen learning to drive because the possibility of an accident occurring is very high.

Various state laws and various insurance companies can handle teen drivers differently. Understanding state law and doing comparisons between insurance companies will result in the best and most affordable premium possible. Teens are going to make mistakes out on the road, but hopefully nothing that will cause an accident to another vehicle or to property. Should that happen, though, the policy needs to be strong enough to handle all expenses incurred.