When a teenager gets a license, it’s probably the first time he or she considers insurance. And as young people graduate from high school and head off to college or enter the working world, there are lots of insurance matters for young people out on their own for the first time to think about.
Teenage drivers represent the highest risk segment of the population and are involved in more serious and fatal accidents than anyone else. From the insurance company’s standpoint, high risk requires a higher insurance premium. Teenage drivers can add anywhere from 50 and 100 percent to the cost of a family’s auto coverage. Generally, it is cheaper to put a teenage driver on the family policy. Driver education and good student discounts can take the sting out of that to some extent. Many states have graduated driver licensing programs which phase in driving privileges and give teens driving experience under controlled conditions allowing young drivers to demonstrate good driving habits and gain experience. Pick a safe car to drive – the model chosen greatly affects the cost of insurance. If a college student does not have a car during the school year (many schools restrict cars on campus for the first couple of years) and attends a school at least 100 miles from home, tell the insurance company. Rates may be lowered significantly for the period the student is not at home.
There aren’t many “student homeowners.” But they have “stuff” that needs protection, which usually comes through homeowner or renter insurance. If a student lives at home, or in a college dorm, their personal possessions, including a computer, stereo, television, clothing and such items are covered by the family’s policy. If they have any items of exceptional value, it’s a good idea to have a separate endorsement on the policy. If a college student lives off campus, the family policy will probably not cover them. They should consider purchasing separate renter insurance.
Courtesy of the Insurance Information Institute (http://www.iii.org/)
More questions? Contact your local independent State Auto agent.