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The Coverage that Makes the Best Teen Auto Insurance

Things to Remember...

  • Teen auto insurance will be expensive so you should ensure that you do not purchase more than they will need
  • With so many providers to choose from, it’s difficult to determine which is the best company for teens
  • The Center for Disease Control reported that teen drivers between the ages of 16 and 19 have a greater chance of getting into car accidents
  • Comprehensive coverage protects against non-moving objects such as deer
  • Collision coverage is when the auto insurance provider compensates you if your teen is involved in an accident

The coverage that makes the best  teen auto insurance is very simple but precise. Teen auto insurance will be expensive so you should ensure that you do not purchase more than they will need.

Teen car insurance rates are easy to find if you add your ZIP code into the FREE quote tool above!

This can be quite challenging since most parents want their teens to have adequate protection. However, if you are not careful with your options you may wind up spending your money unnecessarily.

Now is the best time to start educating your teen driver on the costs surrounding car insurance. They should know that they play a role in how their rates are assessed. Try to stress the importance of keeping a clean driving record.

Help them see how serious things can be and how important it is to remain safe. This can help them choose the right options. Teens do have an impact on their auto insurance premiums.

Only irresponsible and reckless drivers pay the highest car insurance rates. Teach your teen driver that they can make a difference in their safety and their finances.

Split Limit Liability

To find out what type of car insurance your teen requires, start with the basics and build your policy from the bottom up.

Begin with the minimum state requirements. This is general liability bodily protection including property damage. You may feel comfortable with this level of coverage.

Increased limits are a good way to keep the rates low and ensure extra peace of mind. For example, some states like California have tremendously low mandatory limits. They begin writing auto insurance liability policies at 15/30/5.

This means your teen can be fully insured by obtaining $15,000 per person if they are injured during an accident.

They will receive $30,000 per accident if the injury is caused by the other driver. $5,000 is provided for damage to property, including the other driver’s vehicle. Most states are not this low.

Liability limits this low will not cover the cost of the driver’s car. This is something you should consider.

If you reside in California, it may be wise for you to think about increasing your limits. Try raising them to at least 25/50/25.

This way your teen will receive adequate compensation for medical bills. They may need to make reparations towards another vehicle owner.

Make sure they have enough to do so. Be forewarned, liability will not repair the at-fault vehicle.

Combined Single Limit Liability

Other ways teen auto insurance can protect them is if you elect combined single limit liability coverage. This type of coverage pays one lump sum amount, rather than splitting the portions.

You receive coverage for bodily injury in one payment along with property damage. Many are not as familiar with this type option. However, in many circumstances, it can be a real lifesaver.

For example, if you choose a limit of $250,000, the amounts are specific to everyone who is injured. This means one single limit will apply to all of the injuries incurred during the accident.

All of the medical bills and damage costs are covered by this amount. This is a great way to keep premiums low. Because of the single selection, the rates can remain simple. The policy is also easier to understand.

This can be the best option if your teen is involved in a major collision. They will need sufficient coverage to pay for medical expenses.

If court costs apply, the amount is also deducted. When reviewing the choices, be sure to inquire. You may notice a significant difference in overall costs.

There are however, cons to purchasing the minimum state required level of liability. The most critical being the issue of uninsured and underinsured motorists.

According to the Insurance Research Council, approximately 13.8 percent of Americans are currently without car insurance or are severely underinsured.

This equals about one out of every seven drivers. Many blame the economy for the increase in the number of uninsured drivers.

Regardless of the reasons, the facts remain the same. This puts everyone in a vulnerable position.

These statistics would make anyone pause and reconsider. This is something you should think about as you purchase insurance for your teen driver. Your main goal is to keep your young, teen driver safe.


This kind of coverage for teens may be a better option since there may be times when liability simply will not be enough. If your teen is found guilty of causing the accident, their liability coverage does not apply in certain areas.

They will need to find means to repair the car themselves. This is when collision comes in handy.

Collision coverage is when the auto insurance provider pays. When your teen is involved in an accident, they receive compensation.

It does not matter if the accident was his or her fault or caused by another driver. This can sometimes be the best level of coverage for very inexperienced drivers.

While your teen gains a level of comfort behind the wheel, they may cause damage. It may be mild, moderate, or severe. Unfortunately, this is how many learn to gauge distance and avoid obstacles in the road.

For example, if your teen is driving in a parking lot and crashes into a parked car they are responsible. The same is true if they back out without looking first and another vehicle is in their path.

Liability will repair the damages done to the other vehicle, but your teen’s car will also need repairs. Collision can pay for a fender bender quickly and get them back on the road.


Comprehensive coverage is another level that may be useful. This type of coverage protects against non-moving objects. Rural residents generally utilize this type of auto insurance.

Driving down country roads can sometimes result in animals crossing in your path. A deer can cause a lot of damage to a vehicle. Comprehensive coverage will pay for the repairs.

In addition, weather can cause major damage to windshields and rooftops. This is especially true for hail. If you live in an area where extreme weather is the norm, it may make good sense to protect your teen’s car.

Even floods can place a vehicle in a bad situation. Water damages electrical circuits and more. If your teen has comprehensive coverage, it will not be a total loss.

Finally, vandalism and theft are two issues that go together. If someone attempts to break into the vehicle without succeeding, there will still be considerable damage. Teens that drive to and from school are most susceptible to these types of crimes.

Teens that drive to and from school are most susceptible to these types of crimes.

Having an added level of protection will ensure they can have repairs done.

If the vehicle is stolen, the money from the claim can help pay for another car.

Guaranteed Automobile Protection

Guaranteed automobile protection is not extremely popular with teens today. That is of course unless their parents spring for brand new vehicles. Some are extremely lucky.

They have loving parents who can afford to pay for these extravagances. If your teen receives a brand new vehicle, you may want to consider this option very carefully.

Guaranteed automobile protection, also known as GAP insurance is very valuable. This type of car insurance protects against loss due to theft or collision.

If your teen is involved in an accident and the car is beyond repair, GAP insurance will pay. They will cover the expenses so your teen is no longer responsible. The car payments will end immediately.

The same is true if the vehicle is stolen and never retrieved. The car insurance company will take the loss and bear the burden. Once the claim is filed, the financial obligations end. You are free to purchase another vehicle as a replacement.

Once the claim is filed, the financial obligations end. You are free to purchase another vehicle as a replacement.

Custom Parts or Accessory Coverage

Many parents will not want to consider this level of car insurance, but it does exist for a reason. As your teen grows older, they may want to customize their vehicle.

This can mean something as simple as purchasing expensive wheels and tires.

They may want to have a new paint job with explosive colors. They could also increase their level of safety by adding anti-theft equipment, like alarms or avoidance technology.

The most popular type of upgrades these days, thanks to MTV are DVD players and gaming consoles. Some teens even install mini-television sets. All of these can be covered for just a few dollars more per month.

Of course, the amounts should be paid by your teen. You should not bear the burden of their choices. However, during this age teens want to express their individuality.

Having a little more coverage can really make a difference if something happens to their car.

They will want to make sure the money they spent on upgrades can be replaced.

If you are ready for the best car insurance rates for your teen, add your ZIP code into the FREE quote tool now!


  1. http://www.cdc.gov/MotorVehicleSafety/Teen_Drivers/
  2. https://wallethub.com/edu/collision-insurance/7292/
  3. http://www.cbsnews.com/news/how-to-save-on-your-teens-auto-insurance/
  4. http://fortune.com/2014/07/31/5-secrets-to-save-your-teen-on-car-insurance/
  5. http://www.360financialliteracy.org/Topics/Insurance/Cars-and-Auto-Insurance/State-by-State-Minimum-Coverage-Requirements
  6. http://www.insurance-research.org/research-publications/uninsured-motorists-2011-edition-march-2011
  7. https://wallethub.com/edu/comprehensive-vs-collision/10023/
  8. http://www.foxbusiness.com/features/2011/08/26/parents-guide-to-insuring-teen-driver-1129725537.html

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