Teenagers and Auto Insurance



Young Drivers Insurance

The thought of young drivers insurance makes some people cringe. Many factors impact the availability and premiums of young drivers insurance. The young drivers activities and history on the road impacts the potential fluctuations and changes of the young drivers insurance policy, making the young drivers insurance policy even more unpredictable. Still, young adults can effectively manage their young drivers insurance experience by understanding their policies and, of course, by driving safely on the road. 

Factors 

The lack of experience is one of the biggest components of the young drivers insurance policy. Many young drivers have fewer than five years’ driving experience which means they have less experience dealing with the “un-expectancies” of driving. As a result, many young drivers insurance policies include a minor driver surcharge which often has substantial impacts on young drivers insurance premiums. 

Other common factors that impact the young drivers insurance policy options and premiums include: 

  • Accidents & Violations – Accident and violations almost always impact the young drivers insurance premium. Although the young drivers insurance policy may not experience an immediate increase in premium, it is likely the young drivers insurance policy premium will increase upon renewal.
  • Vehicle Type – Young drivers insurance policyholders should choose their vehicles carefully, if they want greater control of the young drivers insurance premium. Higher-risk vehicles, such as sports cars and SUVs can result in higher young drivers insurance premiums than more moderate vehicles, such as sedans.
  • Coverage Selections – Young drivers insurance policies always include the minimum coverages required by the state. However, young drivers are not required to carry state minimum coverages. Young drivers insurance policyholders can elect higher liability and medical benefit coverages, as well as physical damage coverages to protect their vehicle.
  • Discounts – Young drivers insurance policies are often eligible for certain discounts which help to reduce the young drivers insurance policy premiums. Young drivers insurance policy discounts vary by carrier and driver. Common young drivers insurance policy discounts include:
    • Good Student
    • Multi-Vehicle
    • Safe Driver
    • Accident Prevention
    • Many carriers do not provide discounts for completing the required drivers’ education courses but may provide young drivers insurance discounts for completing additional driver training courses.


    Carrier Cancels

    Young drivers insurance policies are subject to the same regulations and guidelines as other auto insurance policies. As a result, young drivers insurance carriers reserve the right to cancel and non-renew policies for nonpayment, unacceptable driving history, unacceptable risks and fraudulent activity. Young drivers insurance carriers notify drivers in writing and in advance of these cancellations, according to the law. Depending on the reason for cancellation, the young drivers insurance carrier provides from 7 to 60 days’ notice.

    Switching Carriers

    Like all policyholders, young drivers insurance policyholders have a right to obtain competitive rates from other young drivers insurance carriers. Young drivers insurance policyholders can cancel their policies at any time to start a new young drivers insurance policy with a new carrier. If you choose to change young drivers insurance carriers, be sure not to create a lapse in coverage.

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