So if you’re looking for a car insurance cover that best suits your child, then I recommend you read this post to the very end as everything you need to know about this insurance policy has been clearly outlined in this post.
Additionally, we’ve included some important links which will also be of help to you in the later part of this post.
There are a number of factors that determine your rate. It’s interesting to note that there are a number of factors that determine your rate. These factors that will determine your particular rate are where you live, the type of car you drive, how much coverage you get and lots of other.
Cheap car insurance for a 17-year-old
Worthy of note here is the fact that each state has minimum car insurance requirements that you must have to drive legally. This level of coverage is typically the cheapest, but it also provides limited protection. In most states, buying just the required coverage means your insurance will pay for others’ injuries and car damage, but not for your own injuries or car repairs.
Most of the insurance companies provided online how much minimum coverage costs, on average, per year in each state, for a teen buying his or her own policy. Mind you, if you want to get an insurance for your car, do well to do that with a registered company.
Can a 17-year-old own and insure a car?
Someone sometimes ago asked the above question in one of our posts on car insurance. My answer to the question is yes. Interestingly, most states allow a 17-year-old boy or girl to own and insure a car, but there’s an important qualifier: a parent or legal guardian must co-sign for both the vehicle’s title and the insurance policy.
For those that want to know, let me quickly say here that even if you’re under the age of 18, in most states, you can buy and insure a car. However, in general, minors cannot enter into a contract so they cannot sign for auto insurance by themselves.
Depending on state laws, a teen may not be able to buy a car either, since that is a sales contract, without an adult signing on as well.
Adding a teen to parents’ policy is usually more affordable
Parents frequently take the easier and less costly approach to putting a teen on their existing policy. It’s usually cheaper because the cost of a policy takes into account the experience and driving record of the policyholder. A 17-year-old won’t have a proven track record on the highway, which could mean higher rates when an insurer crunches the numbers.
According to carinsurance.com, a 17-year-old won’t get the same coverage cuts the parent may pull in, including multi-vehicle, multi-policy (where a car and home policies are bundled) and loyalty discounts. But even with those discounts, adding a 17-year-old driver to a policy still means a big hike in rates.
Another benefit of sharing a policy is that the teen is covered if he borrows your car on occasion, and the parents are covered if they drive the teen’s car. Despite the high cost to insure a teen, comparing car insurance quotes will save you money. Each insurer uses its own method for calculating what you pay, so prices for the same policy can vary significantly.
When it makes sense for a teen to have a separate policy
Aside from adding a teen to a parents’ policy, there are times it makes a lot of sense for a teen to have a separate policy. The reason is that according to research, teens who have been in accidents or who have moving violations may be better off on their own, as sharing a policy with their parents would raise rates on the family coverage.
In view of this, if you’re 17 and have a poor driving record, consider buying an older car they’re cheaper to insure and buying a separate policy with only high liability protection. And don’t forget to shop around. The teen’s policy premium could be lower from one insurer to another.
You can take a little financial solace in knowing that the high cost of insuring a young driver fades over time. According to carinsurance.com, average car insurance rates by age show that premiums begin to significantly decrease when drivers turn 26.
Do you need insurance to drive with a learner’s permit?
Recently, a friend of mine asked me if one needs insurance to drive with a learner’s permit. Well, a teen just learning how to drive does need insurance, but not under his or her own policy. The policy of the vehicle’s owner (which is usually the parent or guardian who accompanies the novice driver) should be adequate.
But don’t hesitate to add the teen to the family policy once he is licensed; do it immediately to avoid problems. Most insurers will wait until the teen is licensed to make you add him but do check beforehand because some will make you add the child at that point (when he has a permit) and start paying for him as a driver.
Do you need insurance to get a license?
Most states require that you have at least minimum liability insurance to drive. This also applies to a 17-year-old, who must show that the vehicle he’ll be driving is currently covered by its owner’s policy.
What’s the best insurance for teenage drivers?
Liability protection which pays for damages a teen may cause to people or property in an accident — is the first step when you insure a 17-year-old. And Gusner says it may be a mistake to think the state-mandated minimum coverage is enough.
Medical bills and costs tied to property damage can start high and quickly go higher, depending on the injuries to those involved. You don’t want to be liable for out-of-pocket payments so make sure your basic liability coverage protects your assets.
Besides raising your liability amount, carinsurance.com suggests purchasing an umbrella policy, which raises liability protection after those basic limits are reached. An umbrella with $1 million or more of protection may be reasonable. If the vehicle is being financed, then comprehensive insurance and collision coverage are required.
If you own your car outright, you can opt out if you want, but that means you’re not covered for theft, damage to your car from an accident or from hail, fire, floods and vandalism.
The cost for comprehensive and collision insurance, on average, per year is $436, according to the Insurance Information Institute. The average yearly rate for comprehensive is $139, and collision costs $297.
If you opt for comprehensive and collision, consider higher deductibles to lower your rate. Of course, you’d then have to pay for minor repairs following an accident.
Car insurance discounts for 17-year-olds
More expensive policies come with teenager drivers but there are ways to reduce the bill. Car insurance discounts for teens vary from state to state, but here are some of the more common ones:
– Driver’s Ed: You may be able to get a 5 percent discount if your teenager completes a driver education course. Taking the class may be required, under state law, as a step toward getting a license.
– Good student: A discount up to 15 percent may be available for drivers who maintain a 3.0 or “B” average in the classroom.
– A driving contract between parents and teen: A discount up to 5 percent may be given to teens who sign a contract with their parents specifying driving rules, such as limiting hours on the road and the numbers of passengers.
What are the best cars for a 17-year-old?
Safety, of course, is the top priority. Besides protecting your teen, your insurance company may show its appreciation for buying a safer car by trimming your rate. The Insurance Institute for Highway Safety (IIHS) offers some basics when looking for a vehicle:
– Big horsepower is not a good idea. “Vehicles with more powerful engines can tempt (young drivers) to test the limits,” says the IIHS.
– Try to get Electronic Stability Control (ESC). The IIHS says this feature, which helps maintain control on curves and slippery roads, is about as good at reducing risks as safety belts.
– Always consider cars with top safety reviews from the IIHS and National Highway Traffic Safety Administration.
Hazardous highways for 17-year-olds
When a 17-year-old gets behind the wheel, accidents often happen. Here are a few facts underscoring the importance of safety and preparation:
– 17-year-olds have the second highest crash rate of drivers of any age; only 16-year-olds have a higher rate, according to a study by the Children’s Hospital of Wisconsin.
– Various reports show that the summer is the worst time for a 17-year-old driver, with more fatalities in June and July than any other month
– The risk of a 17-year-old driver dying in a crash increases with each additional teenage passenger in the vehicle. The risk jumps 44 percent with one passenger, doubles with two and quadruples with three or more, according to a study by the AAA Foundation for Traffic Safety.
WARNING: Belmadeng has no any affiliation with carinsurance.com.