auto _insurance_policy_image2 Q: Am I suppose to have auto insurance as a teenager?

A: States laws require that anyone who operates a motor vehicle be covered by an auto insurance policy. In the case of a teenager, most policies do not automatically provide auto insurance coverage for household residents unless they are specified as a driver and non-driving residents must be listed as "excluded". If a teenager resides in the same household and is not listed on the auto insurance policy, it is likely that they are not covered unless added to the auto insurance policy and a premium is charged.

If a teen drivers becomes newly licensed, be sure to contact the insuring carrier to have them listed as drivers and remove from being listed as excluded. Never assume auto insurance coverage without first verifying with the insurer.

Options to Compare when obtaining auto insurance coverage for Teenage Drivers

The first thing that parents should consider is whether they should add them to their existing auto insurance policy or insure them separately. The best step to help decide this is to compare the difference in price. First see how much the premium would raise if added onto the current auto insurance policy and compare it to insuring them individually. Keep in mind that there are pros and cons to adding the teen to the parent's auto insurance policy:

Pros - The teenager can drive any other vehicle on the auto insurance policy and other drivers can also driver the teen's vehicle.

Cons - The premium for other vehicles on the auto insurance policy may be increased.

Here's more information on deciding whether to add a teen to a parent's auto insurance policy or insure them individually to better understand the difference.

Finding Cheaper Auto Insurance(policy) for Young Drivers

Purchasing the right vehicle can result in large savings when it comes to insuring teens. Keep in mind that speedy cars and a teenager can become a very expensive combination. It would be in one's best interest to buy their new driver an economical and dependable auto. This will definitely keep rates down and may be a lot safer for an inexperienced motorist.

Also, financing autos usually means having to acquire comprehensive and collision auto insurance coverage which in turn will only add to the cost of a premium. If possible, it may be a good to buy lower end vehicles that can be paid with cash on hand to avoid having to purchase additional auto insurance coverage. If one does need to finance a vehicle it may be wise to consider raising the deductible when purchasing a auto insurance policy. This can lower premiums but one must keep in mind that this is the amount that would have to be paid in the event that a claim is filed.

There are actions that can be taken to ensure finding the cheapest insurance for young drivers since they tend to pay the highest rates compared to any other age group. It's important to take advantage of any savings that one can find. One of the most common ways to keep premiums down is to add teens to a parent or guardian's existing auto insurance policy. With that being said, it could be beneficial to shop around. The parent's current carrier may not be the cheapest when it comes to insuring teenagers. Most companies view a teen as a high risk and each company will price auto insurance coverage differently. Comparison shopping can often help find providers that are more lenient in price when it comes to younger motorists.

Be sure to take advantage of discounts. Many carriers will offer a discount of up to 20% for students that maintain a "B" grade point average or higher. This can lower the premium substantially. Some insurers will also offer lower rates to youths who have completed a safe driving course. A certificate of completion may be needed to be submitted to the insurer in order to receive this reduction in rate.

Practice safe driving. It is imperative that parents teach their children the importance of always obeying traffic laws and operating vehicles safely. By avoiding accidents and tickets they will be eligible for a good driver discount after a certain amount of time behind the wheel. This can usually save around 20% on the price of a premium and in combination with other discounts the savings can be quite significant.