Posts Tagged ‘car insurance policy’

Do I Need to List my Stepchild on My Auto Insurance Policy?

Tuesday, March 27th, 2012

In a blended household, the question, “Do I need to list my stepchild on my auto insurance policy?,” is one which comes up often. Having a young person in the home who is old enough to drive is a major change for a family, and the insurance coverage which is in place needs to be updated when a teen obtains his or her license. The situation becomes more complicated when the teen is living with a parent and a step-parent.

The auto insurance provider will need to be informed when the number of licensed drivers in the household changes. The teen should be added to a parent and step-parent’s policy as an occasional driver. The insurance company assumes that all licensed drivers have access to the vehicles in the household. Even though adding a teen driver to a step-parent’s policy will mean paying higher premiums, it’s worth it if the young person is involved in an accident. Without this coverage in place, the vehicle owner would be responsible for paying for damages caused in the accident.

Auto Insurance for Teens with Divorced Parents

If a parent has full custody of his or her teen, the young person should be added to the auto insurance policy. In a situation where the parents share custody of the teen, he or she should be added to both parents’ auto insurance policies.

A parent who does not list a teen driver living in his or her household on the insurance policy may be penalized by the company for misrepresentation. Even if the teen only drives the car occasionally, he or she should be listed on the policy. Failing to do so may mean the insurance company will cancel or refuse to renew the parent’s policy.

Auto Insurance Rates for Teen Drivers

Auto insurance rates for teen drivers are higher than for people who have been licensed for several years,since they are in the high-risk category. According to the Centers for Disease Control and Prevention (CDC), the risk of being in a car crash is highest during the first 12 months that teens are eligible to drive. People in this age group also have the lowest rate of seat belt use, with over 10 percent of high school students admitting that they “rarely or never” using them when riding in a vehicle with another person.

Find the Best Rates for Auto Insurance for Teens

Parents and step-parents who are looking for the best rates on auto insurance for teen drivers should get quotes from several companies before choosing an auto insurance provider. It’s important to make sure that all the drivers in the household have the protection they need, without paying more than they have to.

The quickest way to compare rates from different providers is to go online. Most insurance companies have a website, and buyers can request a quote for coverage by filling out an online form.

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Posted in General Auto Insurance |

What Does Uninsured/Underinsured Auto Insurance Mean?

Friday, March 23rd, 2012

When drivers are looking for coverage, they need to understand what all their options are. The question, “What does uninsured/underinsured auto insurance mean?” is an important one. This type of coverage is not required in all states, but all drivers should consider adding it to their auto insurance coverage.

Uninsured/underinsured auto insurance is a type of coverage which protects the policyholder and his or her own passengers if an accident occurs. It pays for personal injury claims as well as the cost of repairs to the policyholder’s own vehicle in certain circumstances.

Tort States and Auto Insurance

In a tort state, the driver who was responsible for causing an accident is also responsible for compensating the occupants of the other vehicle for their injuries and damaged property. Under this type of system, the at-fault driver (through his or her insurance company) pays for the medical bills and lost wages incurred by the other driver and his or her passengers following the accident.

What happens if the at-fault driver doesn’t have insurance or left the scene of the accident before his or her identity could be ascertained? How can an injured person get the compensation here she is entitled to if the at fault driver doesn’t have enough insurance in place to fully pay for the damages? In these types of situations, the uninsured/underinsured auto insurance coverage would come into play.

Uninsured/Underinsured Auto Insurance Explained

Uninsured auto insurance coverage pays for injuries and damages sustained by the policyholder, his or her family members and passengers riding his or her vehicle when the driver responsible for causing the accident does not have auto insurance coverage. It is also used when the accident was a hit-and-run, and the at-fault driver cannot be identified.

Underinsured auto insurance is a little different. It is used when the driver responsible for causing the accident has some coverage but his or her policy limit is not high enough to pay for the damages caused. While most parts of the United States have a minimum level of coverage which must be kept in place, these limits are usually relatively low and may not be sufficient if the accident caused permanent injuries and a high level of economic loss. In this situation, the at-fault driver’s auto insurance coverage will pay out up to the policy limit which is in place and the underinsured auto insurance is used to make up the difference (up to its policy limit).

There is no set rule about how much uninsured/underinsured auto insurance coverage a driver needs, but it is a good idea to match the level of bodily injury and property damage liability insurance coverage which is on the policy. The uninsured/underinsured coverage can be added to an existing policy very easily, and is an excellent investment in case an accident occurs. When looking for new coverage, make sure that the quote includes uninsured/underinsured auto insurance.

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Posted in General Auto Insurance |

How Can I Find Cheap Auto Insurance for a Teen Driver

Saturday, March 17th, 2012

Many parents are wondering how they can find cheap auto insurance for a teen driver when the younger members of the household are old enough to get their license. Coverage for new drivers cannot readily be described as “cheap,” but there are ways to get insurance in place for all the drivers in the household without spending more than is necessary.

 

Auto Insurance for Teens

Teen drivers are considered to be a high risk for auto insurance coverage purposes. People in this age group lack the maturity and experience of someone who has been licensed for a number of years and are more likely to be involved in accidents. Insurance companies evaluate a young driver’s level of risk and charge more for premiums accordingly. (The good news for recently-licensed drivers is that by the time they reach their mid-twenties, their coverage costs should start to come down.)

Find Cheap Auto Insurance for a Teen Driver

If the goal is to keep coverage costs down, a parent should not be looking at buying a separate auto insurance policy for a teen driver. Adding a young person to an existing policy as an occasional driver is a much better way to go, since the cost of coverage will not be as high as if the teen was made the primary driver on his or her own policy. The teen can be added to an existing policy held by a parent, grandparent, guardian or older sibling.

Auto insurance is something which should be reviewed regularly so that the policyholder has the right type and level of protection in place. Ideally, all drivers will make a point of doing this at least once a year or when there is a change in circumstances (such as when a teen gets his or her learner’s permit or driver’s license).

The parent or the main policyholder will want to find out whether his or her existing auto insurance policy is able to provide the best prices for a policy which includes all the licensed drivers in the household by getting quotes for coverage from a number of auto insurance providers. Each one sets its own prices for coverage, and the cost can vary significantly between companies.

Consumers who go online to look for auto insurance coverage can learn about the different companies which write these types of policies to make sure that they are getting pricing information from ones which have been in business for some time and have the means to pay out on policyholders’ claims. Once a driver finds a company which looks as if it may be a good fit, he or she can get an online quote for coverage by filling out an online form.

It may take a bit of time to find cheap auto insurance for a teen driver, but the effort will be worthwhile if a parent is able to find affordable protection for all drivers in the household.

 

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Posted in Cheap Auto Insurance |

Can a Parent Exclude a Teen Driver from an Auto Insurance Policy

Thursday, March 15th, 2012

The cost of buying coverage for a young person is quite high, and some people are wondering whether a parent can exclude a teen driver from an auto insurance policy. This is one option available to parents, but everyone involved needs to understand the consequences of this decision.

Many auto insurance companies require policyholders to disclose the names of all licensed drivers in the household. Even if they are not named as primary drivers on the policy, the insurance company considers that they have access to the primary driver’s vehicle. Each person’s driving history and the length of time they have been licensed is factored into the cost of coverage for the vehicles covered under the auto insurance policy.

Auto Insurance Rates for Teen Drivers

Teens and young adults pay high rates for their auto insurance coverage. People in this age group are more likely to be involved in accidents than experienced drivers. Newly-licensed drivers don’t have the same level of experience behind the wheel than drivers who have been driving for at least a few years.

When auto insurance companies are asked to provide a quote for a brand new driver, the rate they provide is going to be higher than for a driver in his or her mid-twenties. Parents who want to keep costs down should not buy a policy with the young person as the primary driver, since this would be the most expensive way to get coverage for a teen driver.

Adding the young driver to an existing policy held by a parent, grandparent or other adult member of the household is a more economical choice. The teen is added as an occasional driver and while the premium rates will go up, the amount will be lower than if a new policy was purchased.

Exclude a Teen Driver from an Automobile Policy

A parent can choose to exclude a teen driver from an automobile policy to keep costs down, but everyone in the household needs to understand that the teen driver cannot drive the car at all. He or she will not have any coverage in place if an accident occurs.

Not only will the young person have to deal with the consequences of being charged with driving without insurance coverage in place, but the teen and his or her parents will be personally responsible for paying for damages as a result of the accident. The cost of driving without coverage can include personal injury claims, as well as the cost to repair the other driver’s vehicle and any public property damaged in the accident.

Get Best Rates on Auto Insurance for Teens

Parents who want to make sure that their teen driver has the coverage he or she needs without breaking the bank should shop around to find the lowest rates for a policy which will cover all the licensed drivers in their household. A number of insurance companies offer online quotes to make this process easier, and parents can even buy their new policy over the Internet.

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Posted in General Auto Insurance, USA |

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