5 Car Insurance Mistakes Parents Make and How to Avoid Them
The whole point of getting car insurance is to protect yourself and your family from getting involved in accidents. If your teenager is ready to start driving or obtaining their license, you must plan to get them insured. To make matters easier, here are 5 insurance mistakes you should avoid.
1. Not taking Advantage of Available Discounts
Even though getting your teenager insured might be expensive, you can cut the total cost by availing of discounts. Asking your insurer the right questions will save you a ton of money. The three most popular discounts that teen drivers include:
- Defensive driver safety course. Some insurance companies offer discounts if your child takes an approved driving course.
- Living away from home. If your kid is away for college over 100 miles away without a car, giving this information to the insurance company may open the door for certain discounts.
- Good grades. If your teenager has an overall grade of B or above, they may be eligible for discounts. Ask your insurance agent if they offer discounts on good grades so you can save on monthly premiums.
2. Not Assigning Drivers to Certain Cars
Some insurance companies allow you to assign cars to certain drivers. It helps prevent teenagers from driving cars that are more expensive to insure. For example, if you have an Audi while your teen has a Ford Fiesta, insurance companies may assume that your child is driving your Audi, which is expensive to insure. Knowing teenagers are riskier to insure than advanced drivers with good records will result in a huge spike in premiums.
3. Not Knowing Which Insurance Coverage You Need
Each state has minimum insurance coverage requirements, but that shouldn’t be the only deciding factor you consider. There are several other things to consider, such as:
- The type and model of the vehicle
- Price of the vehicle
- How often will your child drive
- Living and driving conditions of your residential and commuting area
Everyone likes to have full coverage, but it can be very expensive. You should look for the right balance between coverage and cost. If you are not sure which type of coverage you should get for your child – whether that’s collision, comprehensive, or personal injury protection – discuss it with your agent before finalizing your decision.
4. Not Researching and Comparing Different Insurance Companies
People typically compare the cost of retail products. You should apply the same concept when getting car insurance to increase your chances of striking gold.
Before finalizing the deal, aim to get multiple quotations from various insurance companies. If your teen has a record of speeding or accidents, you may have to spend some extra time shopping for the best option available.
5. Only Buying Minimum Coverage
Buying only the minimum coverage insurance may be tempting, but it is not smart. In the majority of car accident cases, the minimum coverage is simply not sufficient enough. Limited liability coverage is generally required, which doesn’t protect your teen but the other person they collide with. Plus, liability limits are low, leaving room for the other party to sue you for much more than what was covered in the policy.
Discuss with your insurance which option is best, and also explore insurance add-ons and ask how they can help. Accidents can still happen even if you and your family are fully insured. It is best to get in touch with a personal injury lawyer immediately after getting involved in an accident and keep a record of all the evidence to strengthen your case. Having the right legal representation will help you receive the compensation you deserve.