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How to Buy Car Insurance for Teenagers

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From Quick Guide: Basics of Auto Insurance

Summary: Car insurance for teenagers can be very expensive because of the risk and exposure associated with this age group. Parents can include teenagers on their car insurance policies or let their children pay for separate policies. Find out more about the options for purchasing auto insurance for teens in this free video on financial planning from a licensed insurance agent.

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By James Burrows
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James Burrows owns the full-service insurance agency The Resurgence Group, which specializes in health insurance, property and casualty, annuities, life insurance and auto insurance....read more

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Video Transcript

"You've got a teenager that wants to drive your car. What are you going to do about insuring that individual? Well there's different ways, and the best way is to get that teenager their own policy. You want to do that because of the exposure and the risk associated with a teenager. It's one of the highest risk categories for accidents these days. So if they can afford it, I would suggest getting that child to pay for their own car insurance, and they will have a lot more respect for the road when they get the bill. Or, as the parents, you could put them on your policy. A lot of folks do that, but it's also very expensive. So if you're trying to give a little bit of responsibilty to your child, I strongly suggest that they get a stand alone policy with a vehicle of their own, and let them pay the bill, other wise you can take out what's called an umbrella policy, and that will cover you on top of your limits, so that even if the child has an accident, at least you've got coverage above and beyond the existing limits. So again, I'm James, I'm an insurance agent, and I'm hoping that I could be of some help when it comes to making a decision as far as buying that car insurance."

eHow Article: How to Buy Car Insurance for Teenagers

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