Tips for Teens Aquiring Insurance
| Q: | What are the different types of insurance and how do I pick the one that is right for me? |
| A: | For starters, you need to ask yourself if you want to stay on your mom and dad's policy or if you want one of your own. If you want to have a policy of your own, you need to know your options and what each consists of. Liability Insurance is required by law in most states. It protects you against claims made by others who have been injured or whose property has been damaged in an accident in which you are at fault. Collision Insurance pays for damage to your car for an accident in which the fault is unknown. For example, if a person were to scratch your car with his/her keys, and you did not know who the culprit was, then this insurance guaruntees that the damage will be fixed at no cost to you except the deductibile. Comprehensive Insurance pays for damage that is done to your car that is caused by something other than a collision, such as a theft or hail damage. These are the different types of insurance policies. To choose which one is right for you, you must consider the condition and the original cost of the car. It doesn't seem sensible to spend $2,000 on a car that isn't even worth that much. In these cases, maybe it would be better to get the cheapest possible required insurance. If you live in an area where theft or other crimes are a problem, then it will have to be yor decision on whether or not to get the more expensive insurance. Remember, if your car is stolen and all the insurance that you have is liability then there is no hope for financial help in replacing your car from your insrance company. That is a risk that many teenagers take. Obviously, if your car is worth quite a bit, you may seriously consider collision or comprehensive insurance. It may definetly be worth your money in the long run. |
| Q: | Why does my auto insurance cost so much and where does the money that I pay to my insurance company go? |
| A: | Teenagers pay more for auto insurance because as a group they are involved in more accidents and therefore have to pay more for their insurance. The money that you pay to your insurance company each term has several different purposes. Parts of your insurance money go to medical bills, car repairs, car thefts, fire, fraud, injuries, lawsuits, accidents caused by drunk drivers, accidents involving people without insurance, inflation, taxes, and company expenses. |
| Q: | Does how I drive affect my insurance? And by how much? |
| A: | Yes, definetly, and the reason is that those who tend to get caught driving wrecklessly are the ones that are going to be the greatest risks to the insurance company. How you drive is one of the greatest factors when it comes to insurance rates. The things that mostly contribute to insurance rates rising are speeding tickets and drunk driving and these are large contributors because they are the factors which cause the most accidents. Speeding tickets most of the time double insurance costs while a DUI conviction can cause prices to quadrouple!! |
| Q: | Are there any ways that I can save money on my insurance? |
| A: | Yes, many. The best way to get the cheapest insurance rate is to have a clean driving record. However, there are other ways in which you can reduce the cost of your insurance: 1. Ask for a higher deductible. This means that in an accident, you will have to pay more before the insurance company helps you out, but it will save you a lot on your insurance in the long run. 2. If your car is older, you may only want liability insurance (as I mentioned above). 3. Buy a car that will cost less to fix or one that they will see as less of a risk. For example, red convertible vs. mom and dad's old station wagon. 4. Some companies will offer you cheaper rates if you agree yo keep your mileage low. The way they see it is that the less you're on the road, the fewer the accidents. 5. See if your company will offer you a cheaper rate for safety features (such as air bags and anti-lock brakes). This prevents fewer deaths and therefore fewer lawsuits for the company. 6. Some companies offer students a discount for better grades, you may want to check into this. 7. You may also want to see if your company allows a discount for taking a drivers' ed class in school. You should definetly ask about this, especially since drivers' ed is usually a required course. 8. Sometimes your company will reduce your cost if you have some anti-theft features-especially if you live in a high-risk area. 9.Last, but not least, DO NOT get caught without your seatbelt on! This raises insurance in a lot of cases. Seatbelts have been proven to save lives; your insurance companies know this and so do police; don't take the risk!!! |
 Back to LHS' Accidents Page |