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Parents of newly minted drivers have much to fret about, with research showing that concerns about teen driving top all other parental worries. In addition to lost sleep, count on significant additional expenses, too. Parents can expect their auto premiums to nearly double when adding a teen driver, because 16-year-olds are nearly 10 times more likely to get into accidents than other drivers, according to the Insurance Institute for Highway Safety.

Controlling Auto Insurance Costs for Your Teenager

You can impact these expenditures and still maintain good coverage with these ten effective ways to control teen auto insurance costs:

• Add your teen to your policy rather than buying separate coverage. The premium rates will typically reflect a combined history of all drivers on the policy.
• Unless your teen drives an insured vehicle more than anyone else, you will save additional money by designating her an “occasional driver” rather than a principal driver.
• Insurance costs will be far higher on new and sporty cars, and higher on two-door cars than four-door cars.
• If the car is more than six or seven years old, consider buying liability insurance but not collision or comprehensive insurance, or at a minimum get a high collision deductible.
• Get plenty of liability coverage, at least 100/300/50.
• If you don’t already have one, get an umbrella policy which adds at least $1 million to your auto or homeowner’s liability protection. It’s comparatively cheap insurance, and it’s frighteningly easy to run up seven-figure medical and legal costs with catastrophic crashes.
• Recheck your rates frequently. Many rates for teens drop every six months to a year.
• Some insurers will give a discount if your child has a “B” average. Ask.
• Have your teen be responsible for paying an affordable portion of her insurance costs. Determine from your agent exactly what the increased amount would be if she gets a traffic violation, and let her know that she will be responsible for the entire amount of any such increase.
• Some insurers offer discounts if teens answer surveys about their driving attitudes and fill out a log sheet recording details of a specified number of driving episodes shortly after they are licensed. You may also be able to obtain a discount by following the Crashproof Plan or signing a Crashproof Contract with your teen.

Teen Safe Driving Practices

Avoiding crashes can save a fortune in repair and medical costs, too. Five key ways to help your teen avoid crashes:

Auto Insurance protects you against financial loss if you have an accident. It is a contract between you and the Insurance Company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto Insurance provides property, liability and medical coverage:

• Property coverage pays for damage to or theft of your car.
• Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
• Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

How is your Auto Insurance Policy price determined?

Auto (Car) Insurance is a type of Insurance coverage for damage to and resulting from an auto. Insurance of this type can cover a variety of things depending on the kind of Auto Insurance that has been purchased.

All Auto Insurance Policies involve a premium, which is the payment a customer makes to have Auto Insurance. Premiums for Auto Insurance can be extremely divergent and are determined by a number of factors. Gender is the major determinant for Auto Insurance premiums. Statistically, men are 80% more likely to be involved in an accident, and therefore have a greater need for Insurance. Auto Insurance premiums for men are higher than Auto Insurance premiums for women. Similarly, teenagers are considered high risk and will have to pay higher Auto Insurance premiums. The Auto Insurance premium can be reduced if the teenager takes a defensive driving course. Many states require teenagers to take defensive driving courses in order to obtain a driving permit and Auto Insurance.

It is customary for Auto Insurance plans to have a deductible that the customer is responsible for before the Auto Insurance provider offers coverage of expenses. Deductibles can have an effect on the coverage available under an Auto Insurance plan.

There are many scary things in the world. Here are some tips for the first time auto insurance buyers. Hopefully this article will remove the fear before buying auto insurance policies.

You should always research the definition of the types of coverage on your policy. Educated decision is always a good decision. If you are having problems in comprehending the definitions from the manual, consult your family members or friends if they are in the insurance industry. They will help you explain the terms and the definitions in the right way.

Plan enough time before buying the right kind of insurance policy. Find the right company with the right coverage at the right price. If you purchase insurance policies in panic, you will not be able to purchase the types of coverage you desire.

Introduction

The following simple steps will help you determine how much car insurance you need to carry. And it will also help you get the best coverage at the lowest price. If you are confused about any of the terms we use, be sure to review the glossary in “Little-Known but Important Insurance Issues.”

Step 1: Starting Out

When it comes to auto insurance, you want to be adequately covered if you get in an accident but you don’t want to pay any more than you have to. So how can you navigate your way through this murky subject?

Keep telling yourself there is money to be saved. How much? Hundreds, even thousands, per year. For example, one of our editors typed all of his insurance information into a comparative insurance service. The quotes (for very basic coverage on two old cars) ranged from $1,006 to $1,807 — a difference of $801 a year. If you’re currently dumping thousands into your insurance company’s coffers because of a couple of tickets, an accident or a questionable credit rating, shopping your policy against others may be well worth the effort.