Why Cheap Car Insurance for Teen Drivers May Not Be Enough

Mar 18, 2021

Auto Ins

Why Cheap Car Insurance for Teen Drivers May Not Be Enough

If you have a first-time teen driver in your house, it's time to consider purchasing car insurance for young drivers in 2021. While adding the new driver to your insurance policy can raise your premium rates, you shouldn't give in to the temptation to purchase cheap insurance for your teen driver.

If you're seeking out affordable policy options, here is your guide to insuring a teen driver:  

Minimum Liability Limits are Inadequate in Some At-Fault Auto Accidents

When purchasing car insurance for teen drivers in 2021, you may want to go beyond your state's minimum liability limits. The lowest mandatory coverage may not be enough to cover third-party injury or property damage claims. The Insurance Information Institute (III) recommends increasing your liability coverage to cover your teen driver if they're at-fault for auto accident claims that exceed the minimum insurance limits. Without sufficient coverage, you may have to pay for any excess auto liability costs out of pocket.   

Don't Opt Out of Coverage

It may be tempting to opt out of coverage and save money; however, it can also leave you underinsured, forcing you to pay out of pocket for damage to your family car. Depending on the car you let your teen drive, you may be able to do without certain coverages on your family car insurance policy. For example, if you fully own the family car (i.e., you have no outstanding debt on it), collision coverage will most likely be optional.

However, you may end up in financial jeopardy if your teen driver damages your vehicle after crashing into another or a wall. Without a collision policy, you'd likely have to spend your own money to repair your vehicle.    

Think Twice Before Increasing Deductibles

Increasing deductibles means assuming a greater responsibility for any covered hazard. As a result, it may reduce your insurance premium. However, it also means that you'll pay out of pocket if your young driver is involved in an auto crash and you have to file a covered auto insurance claim.

For example, if you have a $1000 deductible, you'd pay that amount out of pocket if your teen driver was involved in an accident costing $5000. Your policy would only pay up to $4000 for the covered claim.

Alternative Ways to Save Money on Car Insurance for Teens Drivers in 2021

There are ways to cut costs on automobile insurance while also maximizing liability and collision coverage, among other risks. As such, you'll want to find the most affordable auto policy that doesn't leave you exposed to unnecessary repair and medical costs as a result of being inadequately covered. Here are some practical recommendations:

  1. You can add your young drivers to your existing insurance policy: According to the III, buying the teenage drivers a separate policy may be more expensive than simply including them in your existing family car coverage. 
  2. If the teen has a dedicated car, be sure it has plenty of safety features: Insurers consider multiple factors to work out your premiums, including your car's safety features. So, if you're buying your teen driver their own car, you may want it to have anti-lock brakes, anti-theft devices, side- and front-impact airbags, and other protections.
  3. Seek out positive behavior insurance discounts: Accomplishments such as good grades in school and attending a recognized driving school may qualify your teen driver for lower auto policy premiums.

These are some of the vital points to consider when purchasing car insurance for teens drivers in 2021. For all of your car coverage needs to keep all of your vehicles protected, contact C.V. Mason Insurance Agency in Bristol, Connecticut. We will work with you to ensure you have the right amount of auto insurance coverage, all at the right price to fit your budget.