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Auto Insurance for Young Drivers

Friday, July 9th, 2010

It’s a day that kids look forward to for years and parents fear – the day their child picks up his first driver’s license. Parents dread this day because they worry about a myriad of dangers such as car accidents and the other assorted trouble their children can get into with their new found independence.  Yet another worry is the cost. Will you buy your child a new vehicle? How much will gasoline costs add to your monthly budget? What about automobile insurance?

Young DriverInsurance is a cost you cannot avoid when your child gets their license, and to add to your financial worries, young drivers are subject to much higher insurance fees than older drivers. One single factor – experience – is the largest reason teen insurance is so high. They lack it, and insurance companies like it. Rates are higher for new drivers until they get at least three years of experience under their belt, so be prepared.

Age is also a factor. Most drivers get their driver’s license at age 16 or 17, and insurance companies will charge more for insurance for drivers who are under the age of 25. Males are also generally charged more because they are perceived as being riskier drivers than females, so be prepared to pay higher for your son’s insurance than your daughter’s in some cases. There is one bit of good news associated with teen driving insurance, however. Many companies offer a discount to drivers who get good grades in school, so emphasize this point with your child to save yourself a little money on premiums.

Accidents, tickets, suspensions, or any other types of auto related mishaps can have a much more serious effect on a young driver’s insurance premiums than their more mature counterparts, sometimes doubling or even tripling rates depending on the specific offense or incident. That’s why it’s important as a parent to encourage your child to develop good driving habits:

  1. Ask them to always drive carefully. Short trips to the store are just as dangerous as long drives on the freeway.
  2. Tell them to drive with confidence. Help your child know the vehicle they are driving and the limits of their abilities (i.e. driving in poor weather, snow, at night). Practice with them until they are extremely comfortable driving solo.
  3. Teach them to avoid distractions such as cell phones, especially if they are illegal to use while driving in your state.
  4. Make certain they know that drinking and driving is never acceptable.

Your child’s initial introduction to driving is an approved driver’s training course. If you live in a state where driver’s training is not provided by the school system and you must choose your own private training firm, you have a lot more control. Don’t skimp on this important training. Pick a thorough, accredited, and highly rated course that teaches more than just the basics. Look for a driver’s education class that also teaches things such as defensive driving and specialized situational driving techniques.

Most importantly, explain to your teen the importance of maintaining a clean driving record now so they don’t pay the price for poor driving in the future such as higher insurance rates or other restrictions to their driving privileges due to points on their license, or legal problems associated with a poor driving record. If you get them started off on the right foot, you can ensure that they have a safer, more problem free driving experience as they mature into adulthood.

For more information on auto insurance that fits your needs, get a free Knoxville Auto Insurance Quote today!

Why do I Need Uninsured Motorist Coverage?

Monday, November 9th, 2009

Knoxville Auto InsuranceThe importance of Uninsured Motorist (UM)

In the state of Tennessee it is a requirement to maintain a minimum amount automobile liability insurance.  These laws are to protect others in the event a driver is in an at-fault accident that causes personal injury or property damage to another.  But as we all know, not everyone abides by the law.  It should also be noted that the state minimum coverage for liability insurance shall be no less than $25,000.00 of coverage per individual and $50,000.00 for all individuals in the vehicle, which is often not adequate coverage.  It is highly likely that $25,000.00 will not cover medical expenses for the injured individual in the event of a serious auto accident.  Many people don’t realize that not carrying adequate uninsured motorist coverage can lead financial tragedy, even if they are not at fault.

Example of a situation involving an uninsured motorist:

Driver-1, which does not have any auto insurance, is driving home from a late night at work when his vehicle collides into responsible Driver-2’s vehicle.  Driver-2 has state basic liability insurance, but had declined Uninsured Motorist (UM) coverage when his insurance agent offered it.  The property damage to Driver-2’s vehicle is over $15,000.00, his medical bills are $25,000.00, and he is out of work for over 2-weeks.  Since Driver-2 did not have any uninsured motorist coverage, he is stuck with over $25,000.00 in bills, no vehicle, and loss of 2 weeks of income.  If Driver-1 was not responsible enough to have auto insurance it is very unlikely that he will help with Driver-2’s bills.

Example of a situation involving an under-insured driver:

Driver-1, who carries the state minimum $25,000/$50,000 coverage hits driver-2 and his family of four and sends all of them to the hospital with injuries.  Driver-2’s family’s medical bills total over $100,000.00 and loss of earnings of over $15,000.00.  This means that Driver-2’s family will only receive $50,000.00 from Driver-1’s insurance company and will be left to pay the remaining $90,000.00 himself.  Of course Driver-2 can attempt to go after Driver-1 in court for the remaining expense, but what if Driver-1 does not have the money?

The cost of the coverage is much less than most realize.  Typically the UM limits are set to match the normal bodily injury and property damage limits and cost only a fraction of the normal liability insurance.  Luckily the state of Tennessee requires motorist to sign a rejection form when deciding not to purchase uninsured motorist coverage or purchasing UM coverage less than their BI/PD limits.  However; many drivers still take make the decision to deny this coverage in order to lower their cost of insurance.

Driving without uninsured motorist (UM) coverage can be extremely risky.  Statistics indicate that number of uninsured drivers is on the rise!  According to the Insurance Research Council, chances are 1 in 7 that the at-fault driver is uninsured in an auto accident.  Over 22% of drivers on the road in the state of Tennessee are without automobile insurance!

Be responsible and protect yourself and the ones you love!  Make sure you maintain adequate uninsured motorist coverage! Click Here to obtain a free Knoxville Auto Insurance Quote today.