What to Consider When Getting Auto Insurance Quotes For Young Drivers
Whether you are the parent of a teenage driver, or you are a young driver yourself, you have no doubt already realized that the cost of auto insurance will be a big part of the expense of driving. Drivers under the age of 25 pay the highest auto insurance premiums by far, of any age group of drivers. The higher rates of accidents among this group drives the higher premiums but there are strategies you can use to minimize the cost of your insurance premiums.
Let’s discuss the types of insurance coverage you need to consider and ways that you may be able to save money for your young driver.
Full Coverage Auto Insurance – Full coverage insurance is the most comprehensive type of car insurance available. It not only protects the property of anyone that the young driver may get into an accident with, it also provides insurance coverage for your vehicle as well. This means your insurance will cover the cost of repairing the other driver’s car as well as your own (within the limits of your policy’s coverage).
Full coverage policies are generally fairly expensive for teenage drivers but the cost can be minimized by adding the driver onto a parent’s policy. This allows the new driver to take advantage of the older driver’s solid driving record.
The cost of the parent’s premiums will definitely increase but the added cost is usually substantially less than what the young driver would pay for their own policy.
Liability Only Insurance – Liability insurance is usually cheaper than full coverage insurance, but it comes with a trade-off. Unlike full coverage insurance, liability coverage insurance only provides for the repair of the other driver’s vehicle. If you have liability insurance and get in an accident, you need to realize that you will be responsible for the cost of fixing your own car.
Another consideration is that if you have a loan on your car, your lender usually requires that you carry full coverage insurance. Since your car is collateral for the car loan, full coverage insurance means the lender’s interests are protected should you get into an accident.
For this reason, many teenage drivers and their parents, purchase a cheap car that they can buy with cash. This means they won’t have to get a loan for the car which allows them to cover the car with only liability insurance and not have to carry full coverage.
While this strategy allows them to save substantial money on premiums they do need to remember that they will be liable for any damage that happens to their own vehicle, should they get into an accident.
Finally, new drivers and their parents need to get as many quotes as possible as they are shopping for auto insurance. With the advent of the internet, it is now possible to get several quotes. Most people are surprised at the wide range of premium prices that they may find as they shop for insurance.
It is definitely worth the time to shop around for the best rates.
Sandy Baker is a journalist and author covering a variety of industries, including finance and insurance.
You can read more of her work at http://autoinsurancequotesforyoungdrivers.com/.
Article Source: http://EzineArticles.com/?expert=Sandy_M._Baker
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