Your teenager just aced their driving exam and you are getting ready to hand over the keys to a well taken care of, but used car. Before they roll out of the driveway, you need to know, without a doubt, that they are covered out on the road.
Of course, auto insurance for teenagers is not cheap; in fact, it can easily double your standard rates. Adding full coverage to your teen’s vehicle will only increase costs, so you may question whether it is necessary.
As a parent of a teenage driver, we understand you’d have questions about auto insurance coverage for your newly licensed driver. Continue reading as we break down the ins and outs of full coverage auto insurance to help you decide if it could be right for your teenager.
What is Full Coverage?
First of all, what IS full coverage? Actually, there is no such thing as full coverage! There isn’t a policy in the state of Minnesota that includes the words “full coverage.” However, that doesn’t mean that you can’t have an excellent auto insurance policy that will safeguard you and your teenager when the unexpected happens.
Full coverage is a label that insurers mistakenly use from time-to-time to describe two types of policies–collision and comprehensive. In Minnesota, they are purchased together in addition to liability, uninsured motorist, and personal injury protection to provide drivers with a broad range of coverage.
Generally, full coverage means that damages to your teenager’s car will be repaired, or you will be reimbursed for the value of the car if it is damaged, destroyed, or stolen. Since it can cost thousands to repair or replace a vehicle, full coverage could save a lot of money if your teen is in an accident or their car is damaged by forces outside of their control.
It is important to note that full coverage does not necessarily mean that your teen driver is covered against every possible loss. In fact, there are several things that may not be covered by a standard liability, collision, and comprehensive policy. Examples include:
- Rental car coverage
- Emergency roadside assistance
- Towing and labor
- Custom parts and equipment
Is Full Coverage Right for My Teen Driver?
Ultimately, it is up to you to decide if you want full coverage on your teenager’s vehicle. However, you may be able to make a more educated decision if you understand that your teen’s risks on the road are very different from your own.
Driver age and experience are directly linked to the likelihood of being in an accident. According to the Centers for Disease Control, teenagers are more likely than any other age group to speed, follow too closely, and drive without wearing a seatbelt. Furthermore, new drivers are more likely to make critical errors while driving.
The National Highway Traffic Safety Administration reports that the greatest lifetime risk of crash occurs in the first 6 months after licensure. It is also important to consider that lenders often require full coverage insurance for securities. If there is a lien against your teenager’s car, you may have no other choice but to carry full coverage auto insurance until the loan is paid in full.
Lowering the Cost of Your Teen’s Full Coverage Auto Insurance
If you decide that full coverage is right for your teen, remember that insurance does not have to cost a fortune. Keep in mind that the longer your teen is on the road, the lower rates tend to be. Premiums often drop with each passing birthday. You may also qualify for discounts if your teen goes away to college and leaves their car at home.
Here at Pentagon Insurance, we help Elk River (and the surrounding area’s) parents sift through the options for teen car insurance and compare rates from multiple leading carriers.
In addition to finding a competitive rate for the coverage you need, we can show you how to further lower the cost of your teen’s insurance by raising their deductibles and searching for rate cuts like good student discounts.
For more information or to request your free full coverage auto insurance quote, contact our office.
Peter Cole, insurance agent and partner at Pentagon Insurance Agency in Elk River, MN, began his career in the industry more than 30 years ago. He prides himself on backing up every sale by personally providing service to his clients and by providing the coverage they need at the best possible price.
Contact Peter to discuss your situation today!