Best Insurance Info on the Web

For teenagers, getting their license is one of life’s most exciting moments. However, with motor vehicle accidents being the second leading cause of death for U.S. teenagers, it’s also a big responsibility. As a parent, providing your teen with the appropriate resources and safety advice is crucial to ensure they stay safe on the road. So before handing off the keys to your newly-licensed driver, here are a few safety tips for teenage drivers that will promote safe driving.

1. Remove Distractions

Texting, posting to social media, and searching for the perfect song while driving are all forms of distractions that could lead to an accident. However, driving distractions can take many forms besides cell phone use. For example, having excess passengers, eating, or applying make-up are also potential distractions.

When driving, any distraction is a dangerous distraction. When your teen’s eyes aren’t on the road, they significantly reduce their ability to react to potential road hazards. As a parent, it’s necessary to teach your teen drivers that while replying to a text may only take 5 seconds, those 5 seconds could cost a life.

To prevent distractions, encourage your teenage drivers to put their phones on “do not disturb” when on the road. Should they need to make a phone call, it’s recommended that they safely pull over to the side of the road before picking up the phone. In addition, limit the number of passengers your teenage driver is allowed to have in their vehicle.

2. Get to Know Their Vehicle 

It’s no secret that every car handles differently. For example, cruising in a two-seater coupe is much different than cruising in a 4×4 pick-up truck. 

When they first obtain their license, teenage drivers may be eager to hop in any car, start the engine, and take off. But before doing so, it’s important that they sit with someone familiar with the car, or read through their vehicle’s manual to get to know the car they will be driving. Newer car models may come with advanced features that teenage drivers may be unfamiliar with.  

When possible, we recommend that your teen learns to drive in the car that will be their primary vehicle. This will help them feel comfortable operating the vehicle solo. It’s also a best practice to teach your teen basic car maintenance. Understanding how to check their tire pressure, change a flat tire, refill wiper fluid and check oil levels is beneficial for any driver, regardless of age.  

3. Discuss the Dangers of Drug and Alcohol Use 

No one should ever drive while under the influence of drugs or alcohol. As a parent, you must discuss the dangers of impaired driving with your teen. Not only is drunk driving illegal in every state, but it can also result in serious consequences, if not death. Additionally, remind your teen never to get into a vehicle with someone who has been drinking.  

Although drinking under the age of 21 is illegal, data from the CDC shows that in 2019, 24% of drivers aged 15-20 who were killed in a motor accident had been drinking. 

Despite your best efforts, it’s possible that your teenager may one day engage in activities that they shouldn’t. To combat this, build trust with your teen and tell them to call you, another trusted adult, or an Uber if they need a safe ride home.

4. Always Buckle Up 

A seat belt is one of the easiest and most effective ways to reduce the likelihood of severe injury or death in a car crash. Unfortunately, seat belt use is among the lowest for teen drivers. When teens begin driving, developing crucial safe driving practices is essential. Teach your teens to buckle up every time they enter a vehicle, regardless of who is driving.

As a parent, it’s key that you also set an example for your teenage driver. By being a role model and always wearing a seat belt yourself, you influence your children to do the same. If your teen has grown up routinely witnessing you drive with a seat belt on, they’ll likely do the same once they get to drive.

It can’t hurt to frequently remind your teenage driver to wear their seat belt. They must understand this isn’t a one-time event but an ongoing effort for as long as they operate a vehicle. It only takes a couple of seconds to buckle up, but doing so could save a life.

5. Follow the Speed Limit 

When they first obtain their license, your teen may have visions of themselves speeding down the highway. Not only is speeding illegal, but it’s also extremely dangerous.

Teach your teenage drivers to always follow the speed limit, no matter how clear the roads are. As your teen becomes more experienced, they may have a tendency to increase their speed. To prevent this, parents should take an active role in their teen’s driving. Be sure to monitor their driving habits whenever riding with them.

As previously mentioned, being a good role model can help discourage unfavorable driving habits. It’s essential that you be consistent with your messaging and your own driving behaviors. When driving with your teen, set a good example by following the speed limit and reminding them to do so as well.

6. Practice, Then Practice Some More 

Teenage drivers can never get enough practice, so it’s vital that they regularly gain more driving experience. Consider allowing your teen to do most of the driving for the family on the weekends. Going to the store? Running errands? In these situations, allow your teen to drive while you’re the passenger. That way, you can gauge how well your teen is driving, and they’ll feel more comfortable than driving alone.

Auto Insurance for Teenage Drivers 

Depending on your teen’s age, they may first obtain an instructional permit that allows them to begin learning to drive. During this stage, most insurance companies will cover them as a “permit driver” under the supervising driver’s insurance policy. However, once your teen receives their license, they’ll need to be added as a “listed driver” or purchase a separate policy.

Once they’re a listed driver, having a teen onto your policy will increase your rates—sometimes by a lot. Still, it’ll likely be cheaper than if your teen were to purchase their own separate policy. If you’re looking to add a teenage driver to your policy, the AIS team can run rate comparisons with different insurers to help you find the most affordable plan. Our insurance specialists will guide you through the process and answer any questions you may have. Contact us today at (888) 772-4247, or start a free quote online.  

The information in this article is obtained from various sources and is offered for educational purposes. Furthermore, it should not replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. No warranty or appropriateness for a specific purpose is expressed or implied.

As a driver, you most likely understand that auto insurance is designed to protect you financially in the event of an accident. However, although it is a requirement in nearly every state, auto insurance can sometimes get a bit confusing—but it doesn’t have to be.

At AIS, we pride ourselves on being a helpful resource to guide you through your insurance needs. So, to help you understand the basics of auto insurance, we put together this guide to review some common insurance coverages and how an insurance policy works. 

What is Auto Insurance, and Do I Need It?  

Auto insurance covers damage to a vehicle and offers financial protection if you’re found liable for an individual’s injuries or property damage. Exactly what is covered depends on the details of the policy.

To provide you with this type of coverage, insurance companies charge a premium, often paid monthly, bi-annually, or annually depending on your provider. In addition, your auto policy may include uninsured or underinsured driver coverage, which will help pay for expenses if involved in an accident with an uninsured/underinsured driver. After a covered accident, your policy will provide financial assistance up to the limits you and your provider agreed upon.

Auto insurance is legally required in every state except New Hampshire. However, New Hampshire still mandates all drivers to meet their financial responsibilities if they cause an accident, so having auto insurance is highly recommended. 

Each state has its own requirements when it comes to auto insurance. When shopping for an auto policy, your insurance provider will ensure you meet your state’s minimum insurance requirements. For a quick rundown of each state, click here.

Suppose you’re caught driving without auto insurance. In that case, you could be forced to pay a fine, have your license suspended, or may even face jail time in certain situations.

What Does Auto Insurance Cover? 

Your auto policy is a combination of various coverage types. Some are required by law—others are optional. This allows you to customize your policy to meet your needs and, most importantly, your budget. Here are some common insurance coverage types you can expect to see on most auto insurance policies:

1. Liability Coverage 

Nearly every state requires liability coverage. Liability coverage covers the cost of repairing the damage done to another’s vehicle or property. It can also cover the medical expenses of injured drivers and their passengers. You’ll typically see this coverage type separated as “bodily injury liability” and “property damage liability” in an auto policy.

2. Collision Coverage 

As the name suggests, collision coverage covers damage caused to your vehicle in the event of a collision. How does this differ from property damage liability? Property damage liability covers the cost of damage to someone else’s property/vehicle. Collision coverage applies to your vehicle.

3. Comprehensive Coverage 

Comprehensive coverage provides protection against damage to your car from events outside your control, such as theft, windshield/glass damage, vandalism, weather accidents, and more.

4. Medical Payments Coverage 

Medical payments coverage can cover medical bills for you or your passengers after an accident, regardless of fault. 

5. Personal Injury Protection (PIP) 

Similar to medical payments coverage, personal injury protection (PIP) can also cover medical expenses for you or your passengers regardless of fault. However, PIP can also cover additional documented losses such as lost wages.

The following 12 states require PIP: Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, and Utah.

6. Uninsured/Underinsured Motorist Bodily Injury and Property Damage 

Unfortunately, not everyone drives with the required amount of auto insurance. To protect yourself in these situations, insurers offer uninsured or underinsured motorist coverage. This coverage pays for damages or injuries caused by an accident with an uninsured or underinsured driver.

7. Optional Coverages

Insurance providers may offer a wide range of optional coverage types, which can help customize your policy to your specific needs. Optional coverages include rental car reimbursement, gap coverage, roadside assistance, towing, and more.

What is an Auto Insurance Deductible? 

To cover an insurance claim after an accident, you may first be required to pay a deductible. In an auto policy, your deductible is an out-of-pocket expense you must pay before your insurance provider pays on a covered claim. Deductibles typically apply only to comprehensive and collision losses and not to liability claims.

For example, let’s say your auto policy comes with a $500 deductible, and you’re involved in an accident resulting in $2,500 worth of damage. To have your provider pay for the damage, you’ll need to pay $500 first, and then your insurer will pay the remaining $2,000.

Deductible amounts are set when signing up for a new policy. Generally, having higher deductibles may result in having lower premiums, and vice versa.

How is Auto Insurance Priced? 

Insurance providers consider various factors to set your auto insurance premium. Rating factors used varies state to state. Here are a few typical factors and how they’re used to set your rate:

• Driving history: A clean driving record results in the best rates. Multiple traffic violations and accidents could result in providers considering you “high-risk,” which could lead to higher premiums.

• Age: The older you are, the more driving experience you likely have—and insurers agree. Insurers will usually ask when you were first licensed to calculate your years of driving experience when rating. California uses years of driving experience as a rating factor in lieu of age.

• Zip code data: Where you live can also impact your insurance rate. For example, if you’re in a busy metropolitan area, there’s a higher chance that you’ll be involved in an accident or be the victim of theft, which could result in higher premiums.

• Vehicle make and model: Some cars are cheaper to insure than others due to their repair costs. For example, heavy-duty trucks tend to be more expensive to insure than smaller sedans.

Save on Auto Insurance by Comparing Rates with AIS 

Understanding how auto insurance policies and coverage types work will help you find a policy that performs best for you. However, when it comes to saving, you may be able to reduce your premium significantly by shopping and comparing different quotes. A good insurance agent can help you navigate insurance providers and will understand what questions to ask to help you find potential savings.

If you’re ready to learn more about your different insurance options, call one of our specialists today at (888) 772-4247, or start your quote online.

The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.