The Best Insurance Options for Young Drivers

Drivers who are just starting out on the road may feel overwhelmed by the number of auto insurance choices available. A young driver needs the right coverage at a price that doesn’t break the bank. Knowing which policies fit the best can help young drivers save money and ensure they are adequately protected.

Understanding Liability Coverage

Liability insurance is the type of coverage required by law in most states. This is the basic coverage every driver needs. It pays for damages done to another person or property if a driver is at fault in an accident. All drivers should have liability coverage, but young drivers may need to purchase more coverage than state minimums. Purchasing higher limits of liability coverage will provide more financial protection in the event of an accident.

Medical Payments Coverage

Medical payments coverage pays for medical bills related to an automobile accident, regardless of who is at fault. This is usually a low-cost option and can provide a young driver with extra protection. This type of coverage is helpful for young drivers who may not have health insurance or don’t have enough coverage to pay for medical bills in the event of an accident.

Uninsured and Underinsured Motorist Coverage

Uninsured and Underinsured Motorist Coverage (UIM) pays for damages to a driver’s car if the other driver is at fault and either has no insurance or not enough insurance to cover the damages. Young drivers are often the victims of uninsured drivers, making this coverage a valuable addition to any auto insurance policy. This coverage can help pay for car repairs or medical bills if the other driver is at fault and doesn’t have the funds to pay.

Comprehensive and Collision Coverages

Comprehensive and Collision Coverages are optional coverages. They are recommended for young drivers who are financing their vehicles or have recently purchased them. Comprehensive coverage pays for damages done to a driver’s vehicle from events other than a car accident, such as theft and vandalism. Collision coverage pays for repair costs if a driver is involved in a car accident and their car is damaged. Both of these coverages are usually required by lenders if a driver has a loan on their vehicle.

Discounts and Other Options

Young drivers should take advantage of any discounts they qualify for. Many insurance companies offer discounts for young drivers who maintain good grades, complete a driver’s education course, or bundle their auto insurance with other types of insurance policies. Additionally, young drivers can save money by raising their deductible. A higher deductible will lower monthly premiums, but it also means the driver will pay more out of pocket in the event of an accident.

Young drivers can save money and ensure they are adequately protected by purchasing the right auto insurance coverage. Knowing the different types of coverage and understanding which options fit their needs and budget can help young drivers make the best decisions for their auto insurance policy.