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Teenage Car Insurance: Pros and Cons of Having a Separate Policy

Updated: October 11, 2018

Getting teenage car insurance is a rite of passage for anyone who reaches the legal age where you can drive in your state.

However, teenagers must be wary of the fact that insurance companies will often quote them higher prices.

The best way to save money on teenage auto insurance is to combine a teenager’s policy with their parents’ auto insurance.

This adds the teenager to their parents’ auto policy, which provides more coverage for the same price.

However, for teenagers who do not have this option for whatever reason, there are other ways to save money on auto insurance policies.

What is Teenage Car Insurance?

There is no specific difference between teenage auto insurance and a normal car insurance policy. It is simply a type of auto insurance policy given out by insurance companies to teenagers. Some teenagers will get on their parents’ policies, while others have no choice but to get their own.

Knowing your financial limits when it comes to insurance goes a long way towards deciding on the type of policy you can afford.

If you are a teenager who needs car insurance, there are many things to consider. The first and most important factor is your disposable income. Teenagers must look through their finances and come to a determination about how much they can afford to pay for insurance every year.

Knowing your financial limits when it comes to insurance goes a long way towards deciding on the type of policy you can afford.

For example, teenagers who have plenty of money can afford a more thorough policy, while those with limited disposable income will have to settle for the cheapest thing they can find.

Ultimately, teenagers must also understand that auto insurance is mandatory in almost every part of the United States. It is illegal to drive without insurance in most areas of the country.

How to Save Money on Teenage Car Insurance?

The best way you can go about saving money on car insurance for teenagers is to understand the different parts that make up an insurance policy. This knowledge will allow you to make better decisions when it comes to choosing the right policy for your situation.

Making them get their own auto insurance is unnecessary when the teenager does not even have his or her own vehicle yet.

Teenagers who really want to save money on auto insurance need to talk to their parents about joining the family’s auto policy. This option is most definitely available for teenagers who are in high school and college.

Parents can put their teenagers on the family’s auto policy and save a lot of money this way. Not only does the teenager get more coverage, but their parents have the power to handle any insurance claims related to the teenager’s vehicle.

Many individuals will get access to their parents’ cars when they turn 16 or 17.

In this case, it is financially prudent to put your teen on your auto policy, because it protects the whole family in case he or she gets into an accident. Making them get their own auto insurance is unnecessary when the teenager does not even have his or her own vehicle yet.

Different Facets of Teenage Car Insurance

Some teenagers are not in a position to get on their parents’ policy. Perhaps your parents do not have auto insurance, or you do not live with them anymore. Not all teens are on good terms with their parents.

A teenager should also understand what it means to get comprehensive or collision coverage.

In these situations, it is important for young people to learn about auto insurance and the different parts that make up a policy. Teens should know that liability insurance is mandatory in all fault insurance states, because it protects the other people on the road.

A teenager should also understand what it means to get comprehensive or collision coverage. Collision insurance protects your vehicle when it’s on the road, while comprehensive coverage kicks in when the vehicle is parked at home or at another location.

You should also familiarize yourself with the different types of add-ons you can get with auto insurance. For example, companies offer roadside assistance, underinsured motorists coverage, medical expense protection and much more.

Teenagers who get good grades in school are also eligible for discounts on their policies. If they also have a history of good driving on their record, their premium rates will be even lower.

How Much Teenage Car Insurance Do You Need?

When you are thinking about getting your first auto insurance policy, the first thing you must consider is how much insurance you can afford. When you have a number, you can look at the different policy quotes from companies in your area that are below this dollar amount.

A teenager must decide if they should pay the extra money to get comprehensive and/or collision coverage, along with any insurance add-ons offered by the company.

When you look at the different quotes and compare them, you will see that they all offer differing amounts of coverage. Some quotes are only for liability insurance, while others include comprehensive and collision coverage.

A teenager must decide if they should pay the extra money to get comprehensive and/or collision coverage, along with any insurance add-ons offered by the company.

The best way to decide this is through a combination of your financial situation and your car’s value. If you can afford more insurance and you have an expensive car, get the extra coverage.

If your car is beaten up and fairly old, and you do not have much disposable income, get the minimum level of coverage required in your state.

Companies to Trust for Teenage Car Insurance

The one mistake teenagers should never make is to trust an unreliable company to provide auto insurance coverage.

Going with a nationally recognized company makes financial sense, because you can trust them to provide you with proper service when you get into an accident.

It is tempting to get the absolute cheapest auto insurance for teenagers quote you can find. While these quotes are enticing, getting a ridiculously cheap policy from a terrible insurance company makes no sense. You might save money on premiums, but they will offer you very little coverage, a high deductible and poor customer service.

The sensible choice is to make a compromise between price and the company’s quality. Going with a nationally recognized company makes financial sense, because you can trust them to provide you with proper service when you get into an accident.

Companies such as Progressive, Geico and State Farm are known in all parts of the United States. They all have their pros and cons, but they are all reliable, long-standing insurance companies you can trust.

Going with a company who you know nothing about is a bad idea when it comes to auto insurance.