Car insurance is an important part of responsible driving. Whether you are a newly licensed driver or have been driving for several decades, the best car insurance is the policy that serves your current needs.
Best Car Insurance for Young Drivers
New drivers are often eager to get behind the wheel of a car. It is an exciting rite of passage, but also an expensive one. It is no secret that auto insurance for teenagers can double or even triple the rates of their parents’ policy. However, that is no reason to skip on critical coverage. After all, teens are 3 times more likely than anyone else to be in a collision. The best insurance for a young driver is the coverage that will protect them – and their parent’s pocketbook – while they’re on the road.
As a parent, you can either add your teen driver to your existing insurance policy or purchase a separate policy instead. Whichever you choose, the policy must include liability insurance, personal injury protection (PIP), and uninsured motorist protection (UM). Liability insurance will cover victim injuries and property damage when your teen is at-fault for an accident. PIP will provide reimbursement for medical bills and lost wages for your teen and members of your household regardless of who was at fault. UM goes above and beyond PIP coverage if your teen is hit by an uninsured driver.
If you find yourself needing to lower your teen’s car insurance rates, consider that there are many things that can affect premiums. For example, collision insurance for your young driver may be more affordable if you are insuring a 4-door sedan with high safety rating versus a high-powered 2-door sports car. Your teenager may also qualify for discounts on coverage of as much as 20 percent simply for maintaining good grades in high school with a good-student discount. Be sure to ask your agent about additional discounts if your teen driver attends a driver safety course or leaves the car at home while living on a college campus.
Best Car Insurance for Adults
There are perks that come with experience. Once you have many years of driving under your belt, you can start maximizing your savings on the coverage you want and need. To start, consider taking advantage of a pay-as-you-go driver analysis system that is offered by many of today’s insurance carriers. These systems plug into your car and transmit data about your driving habits to your insurer. Safe drivers who do not engage in risky behavior, such as late night driving or hard braking, may qualify for significant discounts.
As an adult, it is also time to start thinking about the limits on your liability protection. Liability coverage is your shield against expensive lawsuits that could cost you tens or even hundreds of thousands of dollars in legal fees, court judgments, and other collision-related damages. If your liability limits are too low, you might have to dip into your cash reserves or face wage garnishment – something that could deter your future savings goals. Sometime the highest limits offered on a car insurance policy is still not enough. If you have substantial assets that need to be protected, you should seriously consider an umbrella policy of 1-million dollars or more. While that sounds like it would be expensive, it is actually quite affordable, often costing only a couple hundred dollars per year.
Best Car Insurance for Mature Drivers
One reason that your golden years are so bright is that you get to keep more of the money you have worked so hard to make. Your 50s are the gateway to your driving prime. Many insurers recognize that mature drivers are far more experienced than others on the road and also less likely to be involved in a collision. Be sure to ask your agent about discounts available for mature drivers, especially once you reach retirement. Once you eliminate your daily commute, your risk exposure drops, too.
Just be sure to maintain quality coverage and avoid the temptation to lower your liability limits in retirement. Even if your income is less than what it once was, you probably have significant assets acquired that need to be protected. Talk with your agent about how much liability you need and whether you should supplement your car insurance coverage with an umbrella policy.