Any new driver must be aware of what auto insurance coverage is necessary before they can drive.
Young drivers that are new to driving and still living at home should be added to their parents policies and drive their car. The insurance companies provide discounts for those students who maintain good grades,complete an approved drivers education program, sign a driving contract with their parents,drive an unpopular car that has safety equipment and anti- theft alarm.
Older drivers that are new to the road may be given discounts for driving under 15 miles to and from work,home insurance policy combined with auto insurance policy,multiply auto policy ,drivers education and lessons,and more recently,their credit history.
In any case,both age groups should have the following:
Liability-This includes bodily injury protection in some states and is probably the most important part and it covers you when you are at fault in an accident. Most new drivers are advised to have the highest allowed. Property damage liability in some states calls for $100,000 coverage for each vehicle .
Uninsured Motorist-pays for accidents where the other driver that doesn’t have insurance. Since there are many drivers without insurance you really need this. It may cost $40.00 for $100,000 worth
Personal Injury Protection (PIP) is coverage for medical expenses and funeral costs if needed.
If you already have health,life and disability insurance you may not need it.
Collision and comprehensive make up the bulk of the premium -about 40% ,which are cash value. This is determined by Kelly Blue Book value. Your car could be “totaled” by the insurance company and not provide enough money to buy another car. A higher $1,000 deductible (your out of pocket expenses)will help to keep your premiums low. The older the car,the less it may be worth.
These five areas can be adjusted depending on the state you live in,year,make and model of the car,the assets you own such,and your driving record. The average costs for new drivers is $1200.00 a year.
For more information please read:
The National Highway Traffic Safety Administration -http://www.nhtsaic.dot.gov
Insurance Institute for Highway Safety -http://www.iihs.org