How to Save Big on an Auto Policy that Includes a Teenager

Insurance price tags have become the talk of the town, and nothing is more vexing than that which is related to younger drivers.

It’s the absolute truth. Adding your teenage son or daughter to your auto insurance policy can be a mighty expensive endeavor. To be fair, there is good reason for insurance companies to demand more on a premium quote: it is simply because there is more of a liability risk with a car, van or truck teenage driver!

In order for the average Joe to understand precisely why that young driver amounts to a double headache – one for you and another one for your insurance carrier – I’ve brought some super underscoring facts. The ratio in regard to age-related collision statistics speaks for itself.

Did you know that teenage drivers between the ages of 16 and 19 years old have double the chance of causing a crash than 18 to 19 year old teens? Did you know that teenage drivers between the ages of 16 and 19 years old have been involved in auto collisions more than four times as much as senior citizen drivers?

The facts definitely get more sobering when exploring further statistics.

The median auto insurance rate rises across the country by one hundred, fifty two percent upon inclusion of a teen driver. There’s another issue as well: male teens are pricier than females Рwith the median cost for an added teenage boy rising one hundred, seventy six percent, and the average bill for a policy that includes a teenage girl rises one hundred twenty-nine percent. Moreover, the state of CA has the highest rise in premiums when adding a teenage driver Рmore than two hundred percent!

How do you save on a policy that includes a teen?

Now that households with teen drivers have been informed of the bad news, here’s a bit of a silver lining that will help swallow the bitter pill. There is a tremendous difference in insurance rates between companies and various states. Though sifting through the many sources for the layman can prove incomplete at the least and cumbersome and daunting at the best, thankfully, there is an alternate prevailing route.

By partnering with an experienced, independent insurance agency that has an abundance of company resources at its fingertips, you will be presented with tailored coverage at competitively lowest quotes that are buoyed by significant bundling savings as well as other great sources of discounts.

Of course, in order to locate the appropriate agency that delivers on its promise, it is wise to evaluate associated performance. The best way to do that is by getting good reports about a particular place – from those who are satisfied customers. After that, you’re free to enjoy the coverage benefits of an exceptional ride! Best of luck and bon voyage!

PRIME Insurance is that independent agency that more than 10,000 satisfied customers will refer you to. Presented with numerous industry awards for the excellence that it touts, PRIME has also been appointed to do direct business with over 40 of the leading insurance companies – such as ACE, AIG, AMERICAN MODERN, CNA, FOREMOST, GUARD, MIDDLE OAK, PROGRESSIVE, Safeco, USLI, ZURICH and more.

Fundamentals of Personal Auto Insurance

Personal auto insurance helps you drive peacefully and protects you from the financial loss in case of an accident. It is an agreement between the insurance company and the insurer who pays the premium for the future losses as per the policy. Personal auto insurance provides property, medical, and liability insurance.

Property coverage pays for the damage or theft of your car, medical covers the costs of treating injuries. While, liability coverage pays for the bodily injury or property damage. The main purpose of the insurance policy covering loss of an accident whether or not caused by you.

Why Do You Need Personal Auto Insurance?

Issuance of personal auto insurance is mandatory in almost every State. If drivers do not have this type of policy they are liable to pay fines. This policy saves you from getting bankrupt and minimizes the risk of losses.

Fundamental Coverage by Personal Auto Insurance

Personal auto insurance mainly covers six basic coverages areas.

1. Bodily Injury Liability

This type of coverage applies when you or the designated driver injures someone else. It is necessary to have enough liability coverage in this case because the severity of the accident may vary. You should consider more than the minimum requirement for this type of insurance.

2. Property Damage Liability

This liability grants coverage for the damage caused to someone else’s property by you or your designated driver. The property can include cars, lamp posts, fences, buildings, billboards, or any structures your car hits.

3. Personal Injury Protection

This type of coverage aids you with the treatment of injuries to the designated drivers or passengers. It covers the medical costs, lost wages and even funeral costs.

4. Collision

This coverage pays for the damages caused to your car with the collision of another car, or any other object. It could also include any potholes or anything on the road. This type of coverage is usually sold with a deductible under the range of $250 – $1000. The premium depends upon the deductible. The higher the deductible, the lower the premium.

5. Uninsured Coverage

This type of liability coverage will compensate you or your designated driver if they get hit by an uninsured or hit-and-run driver.

6. Comprehensive

This type of coverage reimburses you for losses because of theft, damage or anything that is other than collision with a car or object which may include, fire, earthquake, missiles, hail, flood, or animals on road. This is also sold with a deductible. You can keep your deductible high to lower your premium.