Car Insurance Day, observed on February 1st, is a day dedicated to educating everyone about the importance of car insurance. One of the key areas of focus during this day is making sure people understand their car insurance and how it works.
All Star Driver Education’s curriculum teaches teens the basics about the distinct types of car insurance available and the coverage they provide, and how to maintain insurance coverage and lower costs. Here are some FAQs which parents often have about car insurance for their teen:
Is car insurance for teenagers required?
Michigan requires all teens (whether on learner’s permits or fully licensed) and adult drivers to have car insurance before driving their motor vehicles on Michigan roadways. There is no special kind of car insurance for teenagers in Michigan.
It is important for individuals to understand the importance of being insured. Car insurance not only protects drivers financially in the event of an accident, but it also helps to ensure that everyone on the road is held accountable for their actions.
If I Add a Teen to My Car Insurance, How Does Coverage Work?
Adding your teen to your policy is a simple call to your insurance and they will be protected under the same coverage as you. However, the difference between adding a teen or adding a spouse to your policy is that the teens have a significant impact on your policy’s cost.
If you are concerned about your teen driver’s liability, you can choose to increase the liability limits or your deductible. You want to make sure that your deductible fits into your budget should a situation arise where you need to pay it.
Alternatively, if you are not sure about your teen’s driving abilities, please reach out to our team to set up some private drives for your teen. These drives can count as part of the 50-hour drive log and help the teen master the areas you are concerned about. We also recommend doing this in Winter and Spring, so the teens are trained on winter roads, and are more confident drivers.
What Are the Different Types of Insurance Coverage?
Liability insurance is required by law and covers damage or injuries that a driver may cause to another person or their property. Collision insurance, on the other hand, covers damages to a driver’s own vehicle. Comprehensive insurance provides coverage for non-collision incidents such as theft, fire, or natural disasters.
Once you know the right car insurance plan for you, you also need to know about the rules and restrictions. Since insurance is required by law, there are consequences of driving without it, such as fines, license suspension, and increasing legal trouble.
How Can You Reduce your Insurance Costs?
On Car Insurance Day, we encourage everyone to look at their insurance policies for information on car insurance discounts. For example, safe driving practices help lower insurance costs. Many insurance companies offer discounts for safe driving practices such as taking a defensive driving course.
So, what are your plans for Car Insurance Day? How about a call to your insurance company to check what type of coverage you have and if you are satisfied with it? It is also a time to review the importance of car insurance and safe driving practices with your teens.