Car Insurance For Teenagers

Do you have a teenage driver (or one on the way)?  Back to school time is a great opportunity to think about car insurance savings!  

Having a teenage driver can be stressful.  You worry, first and foremost, about their safety and then about the costs.  And there are a lot of costs!  Things like purchasing an additional vehicle, getting licensed, and paying a little more for insurance. 

Fortunately, you still have options.

First you want to think about the vehicle your teen will be driving.  Premiums are higher on vehicles with comprehensive and collision coverage, which pays to fix your vehicle after an accident.  When you have a car that has only liability insurance (which pays only for damage your driver does to someone else’s car), you pay a lot less.

If you are purchasing a car for your teen and need to watch your budget, consider buying an older reliable model for cash that will not require comprehensive and collision coverage.  We can help you weigh the cost and the risk to see if it is a good option for you.  

You also want to take advantage of all available discounts.  These vary by policy but typically include a discount for driver's education and one for having good grades.  With school about to start, it's a great time to setup an incentive plan with your teenager to make sure they keep those grades up and your premiums low!  

Still have questions?  Call us to review your current policy and look for ways to help you manage the cost of having a teenage driver.

High Limits for Young Drivers

When we recommend healthy liability limits to young drivers, we often hear comments like “I don’t own anything“, “I have no assets”, or “What can they take from me?” Aside from the moral issue of doing the right thing and having adequate insurance coverage should you injure someone, it is important to note that if you are involved in a serious accident, you could jeopardize your entire financial future. In the case of a court judgment, you could have your wages garnished for the rest of your life; future assets can also be attached. A judgment in Massachusetts can be enforced for up to 20 years – plus interest.

Let’s be real: I was young once and I know what you are up to and what can happen even to the best drivers. Do you want to jeopardize your future for the sake of a few hundred dollars a year? Remember, if insurance rates are high, it is only because claim exposure is high.

This is not something to take lightly; get good coverage. And the value of your car has nothing to do with the damage you can cause. You can injure someone severely with a new Mercedes or a ten-year-old Toyota.