Through Life Series Part 1 – Insurance for Teens

insurance for teens

Just like many things in life, your insurance needs will change throughout the decades. At Gebco, we want to make sure your needs are being met at every stage of your life. Over the next few months, we’ll be sharing our “Through Life Series” – a blog series that focuses on your insurance needs by decade. This first article will be about insurance for teens.

Insurance is not a high priority for teens, but is it still a necessary part of growing up. Here are some insurance items that teens should have.

Car Insurance

Good car insurance is a must for teens. Teen drivers (age 16-19) are almost three times more likely than drivers 20 years of age or older to be in a fatal car accident, according to the CDC.

Teens are more likely to text and drive or drive distracted as well. And these errors, combined with a young driver’s inexperience, means the likelihood of a teen driver being in a motor vehicle accident is high, and the time to think about whether you or your teen’s car insurance is enough is not when they just got in their first fender bender. Insurance rates go up after an accident, especially if you are the driver at fault – so it is both in your best interest and in the best interest of your financial livelihood to purchase car insurance before you have an accident or other violation on your driving record, if possible.

Car insurance is a must-have in every decade of your life, but it is one you will likely use more often as a young adult.  Though many insurance plans (medical, life, etc) tend to get more expensive as you get older, car insurance is the most expensive in the teen years, due to the high rate of accidents caused by new and inexperienced drivers.

However, there are ways to decrease your teen driver’s insurance bill. Many auto policies offer lower rates for teens if they join their parents’ existing plan. And most insurance companies offer incentives and discounts (sometimes even up to 25%) for teens who maintain good grades in school.

Another way to save money on that teen car insurance bill is to choose an “insurance-friendly” vehicle. These vehicles tend to be safer, newer, and slightly larger than many teens’ fantasies of convertibles and luxury vehicles. Your teen may not love it, but meeting somewhere in the middle of the “functional” to “cool” spectrum when it comes to their first car will save money and ensure your teen is protected on the road.

Car Insurance Comes in All Shapes and Sizes

Deciding what type of car insurance best fits you or your teen is very important. At the very least, your teen should have liability coverage – this will take care of the expenses that result from damages your teen is responsible for.

But more than 40% of car accidents involve at least two vehicles, which means your teen may need more coverage. Collision coverage is a policy that covers damages to your own or your teen’s car. Uninsured/underinsured motorist coverage is for protecting your teen if they are hit by a driver who doesn’t have insurance, and in Maryland, it is legally required that drivers carry a certain level of this insurance on their policy. There are also options for medical payment coverage – this will take care of any medical bills your teen may receive if they are injured in a car accident.

Comprehensive coverage is a good thing to consider purchasing if you have teen drivers. This can cover incidents outside of collisions – theft, fire or water damage, damage from animals, and natural disasters.

Gebco Is Here for Life

No matter what stage of life you or your family members may be in, Gebco is committed to bringing you the insurance you need at an affordable price. For all of our insurance offerings, visit our home page or call our offices: 800-464-3226.