New Driver? You Need This Coverage
Just like anyone attempting to master a new skill, teenage drivers tend to make mistakes and take risks that more experienced drivers likely wouldn’t. When it comes to insurance, increased risk translates into increased rates.
While there are some things you and your teen driver can do to lower your insurance costs (more on that in a bit), there are certain insurance coverages most new drivers should have and recommendations to get the most out of your insurance coverage:
Increase Your Liability Limit
This section of an auto insurance policy pays for the medical expenses of people you or your family members may injure in a crash. Drivers often have a “100/300” limit, which pays a maximum of $100,000 for a single person’s injuries and up to $300,000 total for the injuries of everyone in the car you hit.
Wondering how much liability coverage you really need? We recommend $500,000/$500,000 limits at a minimum to protect your assets and future earnings from a claim or lawsuit resulting from an accident.
Note: Doubling or tripling your liability limit does NOT mean it will double or triple your insurance cost.
Increase Your Property Damage Limit
This portion of a car insurance policy pays for damage you cause to other people’s property or vehicles. We recommend $500,000 limits for property damage. If you think that sounds high, just imagine what it could cost if your new driver caused an accident with multiple cars – or involving a semi-truck. Insurance would help cover the rig and even what’s inside.
Consider Roadside Assistance or Towing and Labor Coverage
This optional coverage goes a long way in providing peace of mind if your new driver is in an accident or has car problems.
Get an Umbrella Policy
This type of coverage is an extra layer of liability protection that picks up where other insurance policies leave off and covers situations other policies may not. An umbrella policy is a totally separate policy, not coverage added to an existing policy. Sold in increments of $1 million, umbrella policies are usually fairly inexpensive, with prices starting around $125 per year.
(Learn more about umbrella policies and how they protect you here.)
Consider Accident Forgiveness
Some auto insurers offer something called accident forgiveness. It’s sort of like a “get out of jail free card” for an at-fault accident. You pay the deductible to get the car fixed but don’t pay an increase in premium at renewal. Penalties for an accident involving a young driver can increase your premium by hundreds of dollars a year.
Each situation is different, so we always recommend talking to an agent. By asking a lot of questions, your agent can make sure you have the best coverage at the best price for your situation.
Do You Have the Right Coverage? Could You Save Money?
Get an Auto Insurance Checkup
When you work with Bell Insurance, you can relax knowing that when the worst-case scenario happens, we’ll take care of you. As experienced agents, we’ll help you protect what matters with coverage options in your best interest, competitive pricing, stress-free claims, and the high-quality service you expect from Bell.
To find out if you have the right coverage – or if you could save money on the coverage you have – get a free, no-obligation insurance checkup from a company you can trust.
Bell Insurance Services, LLC is a wholly owned subsidiary of Bell Bank. Products and services offered through Bell Insurance are: Not FDIC Insured | No Bank Guarantee | May Lose Value | Not A Deposit | Not Insured by Any Federal Government Agency
How to Save Money When Insuring a Teen Driver
No doubt – insuring a new driver can be costly. New drivers, particularly young drivers, need years to learn to avoid simple mistakes on the road. In fact, statistics show teenage drivers have more accidents than any other age groups. And unfortunately, those accidents tend to be more severe and involve more injuries. Because of this, it costs more to insure teen drivers – especially boys, who statistically have more car accidents than girls.
Check out these 7 tips for lowering your teen’s car insurance costs: