As teenage drivers are demographically at a higher risk for crashes, they will in turn pay a premium price for auto insurance. That doesn’t mean however that they need to overpay. Educating yourself on available policies and understanding the best type of insurance for your situation will allow you to purchase insurance that will best suit your needs at an affordable price.
Bodily Injury Liability
In the State of Maine, liability insurance is the minimum amount of insurance that you must have in order to drive legally. This will cover damages to the other vehicle in an “at fault” crash as well as the medical expenses of the other vehicle’s occupants.
Personal Injury Protection
At its most basic, PIP insurance will cover the medical expenses of the driver and passengers of the policyholder’s car.
Property Damage Liability
With this coverage your insurance company will pay out for damages you, or someone to whom you given permission to drive your car, causes to private or public property.
Collision
This policy will cover the expense of getting your own car fixed if you are involved in an “at fault” crash or if you collide with an object.
Comprehensive
This is the insurance you should purchase if you want to be protected in the case of theft or an act of God (earthquake, fallen tree, etc...)
Uninsured & Underinsured Motorist Coverage
This will cover your expenses if you are hit by an uninsured motorist or if you are the victim of a hit-and-run crash.
Before you consider contacting insurance companies, there are actions you can take to ensure that you set yourself up for the most affordable insurance possible. The Good Student Discount is generally available to students that maintain a B or higher GPA. When you start comparing the total amount of money you can save over time, you will start to see an additional incentive for maintaining a high grade point average. Additionally, it is never too early to start working towards a good credit record, and a good credit report will decrease your overall insurance costs. Consider limiting how far you will drive for a time. There are usually discounts offered to low mileage drivers.
Of course taking a driver’s education course, such as the one offered by Mullen’s Driving School, will not only enable you to work towards getting your license sooner, but it will also enable you to be eligible for one of the largest discounts offered to young drivers. Discuss with your parents whether or not they would like to add you to their insurance policy. This will usually decrease the amount you will pay for insurance by quite a bit. Finally, make sure you consider the type of car you will purchase. The color of the paint job may not play a part in the total insurance cost, but there are plenty of other factors that do. Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft. We always recommend getting an insurance on any car you are considering purchasing before you buy it.
When it comes time to purchase insurance there are yet still more things you can do to save yourself money on your policy. Consider purchasing a policy with a higher deductible. If in the long run you are able to avoid using your insurance policy by avoiding crashes, you will save money with this type of a less expensive policy. When it comes to choosing a policy, make sure to shop around. Insurance prices can vary drastically from one provider to the next. Remember though that the cheapest policy is not always the best and in many cases may be your worst bet. Make sure you fully understand the policy to which you are signing. Many times an insured driver will not realize how little coverage they actually have until it comes time to use it.
INSURANCE INFORMATION INSTITUTE | SAFETY BROCHURES
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We recommend James Sanborn of GMH INSURANCE AGENCY
