Under 18 car insurance is an insurance policy taken on cars which main drivers are below 18 years of age. This type of insurance is different from the usual car insurance simply because it is seen as riskier than others. The main driver is young and not a very experienced driver. This is heavily considered when insurance companies assess how much premium must be paid to insure the car.
People have opted to list the main driver as someone else who has more driving experience and is older. This is considered as fronting and is not really looked upon well by insurance companies. Some parents insure the car in their names and let their kids use the car for the most part. The problem is when there are claims to be made, the fact that the main driver is below 18 years of age will eventually be discovered. This is true in third party injury, theft or total loss claims. When fronting is discovered, the insurance in the event of such accident or loss becomes null and void.
The other option is called self insurance where the car and all risks involved will be shouldered by the owner. It is the same as not insuring the car at all. Although such insurance is generally much more expensive than regular ones, the costs in the event of accidents or loss will be much higher than if there was insurance in the first place. These costs include attorney’s fees, compensation for damage and injury and property damages. In the end it’s not wise to self insure.
When getting a car loan, it is difficult to secure one without insurance. Banks and financing companies insist on it. Most of these firms even require full coverage exceeding minimum requirements in state law. These companies want to protect their investments and they want to make sure that in the event the car was lost or totally destroyed that they will be paid first. They want to be sure that they get their investment back.
Getting certification for other safety training for drivers may help reduce the premium. Even if teen drivers think they’re the safest and most careful of drivers, they can’t fully count on other drivers who may cause accidents. If the other driver did not opt for full coverage insurance, the teen driver and his or her family may have to shoulder the medical bills and costs for repairs. This is too risky for anyone considering purchasing a car for his or her teenager.
There are many types of car insurance for teens under 18 which includes liability coverage, comprehensive, collision, medical, gap coverage and uninsured motorist. Insurance is all about protection and the premium you will pay to protect your finances when unexpected things happen. To keep the premiums low, consider purchasing smaller cars with engines no bigger than 1.2 and the premium will be substantially smaller.