How to Buy the Right Insurance for Your First Time Driver

Monday, January 14, 2013, 6:00 AM | 1 Comment

There are many life changing events when kids become teenagers but possibly the biggest event is when they are able to get their drivers’ license. This is a license for their freedom, an opportunity for them to become independent and free. It is also, however, an opportunity for parents to double their insurance rates.

There are countless aspects of the teenage driver that causes severe anxiety for the parents but with the right insurance coverages, the process can create less stress, both on the psyche and the budget.

  • Driver’s Education/Defensive Driving Courses

    About half of the states require that teenagers participate in a drivers’ education course before they are able to get their driver’s license. This is a course that educates teenagers to be safe and defensive drivers.

    Throughout the course, the teenager learns about all types of laws, how to obey them and what happens when they are broken. While only half of the states require this course for teenagers, most insurance companies offer discounts for teenage drivers who have successfully completed a certified drivers’ education program. Other insurance companies that offer discounts if the teenager participates in a course the company itself offers.

    In any case, parents can save a pretty penny on their auto insurance if the teenager goes through some form of education program.

  • Good Grades

    The best way for teenagers to save on auto insurance is to get good grades. The good grades discount offers the best chance for teenagers to get rates that their parents can afford.

    This does mean however; that once the discount is offered the student needs to keep the grades up because if they fall, they may lose that discount. The typical GPA for the good grades discount is 3.0, or on low honor roll.

  • Liability vs. Full Coverage

    Liability insurance is the minimum insurance that states require to be on all motor vehicles driven on a roadway. This type of insurance covers other people involved should you be in a motor vehicle accident. It basically says that if you are in an accident that is your fault, the damages will be paid for.

    Full coverage insurance is also called comprehensive and collision. This is the type of coverage that pays for your own losses should you be in an auto accident. While liability is required in all states, the only time that full coverage insurance is required is when the vehicle is financed.

    Should parents want to save money on their auto insurance when their teenager starts to drive, they should get them a vehicle that does not need full coverage insurance since this can cut their insurance premium in half.

    Parents are required by law to add any licensed driver in the home to their current auto insurance policy although there are ways that parents can save money on their premiums.

From good grades to participating in driving classes, there are ways to cut the insurance costs down. When the time comes, you should also compare all of your options. When you go to comparison sites, you can get AutoInsurance.US quotes that will give you the best possible options when it comes to insuring your new teenage driver.

Author’s BIO

Richard Ackerman has experience working within the auto insurance industry. In his spare time he enjoys blogging on the subject, offering tips and advice to drivers via motoring blogs.

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  1. One Response to “How to Buy the Right Insurance for Your First Time Driver”

  2. By piter on Jan 29, 2013, 6:42 am | Reply

    Great post about Auto insurance. Should parents desire to save cash on their auto insurance when their teenager begins to propel, they should get them a vehicle that does not need full coverage insurance since this can cut their protection premium in half.

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