July 25, 2024


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Car Insurance for Teens: What Does it Cover?

3 min read


Adding a teenager to your car insurance policy can be expensive. The National Association of Insurance Commissioners reports that the average annual premium for adding a 16-year-old driver is $1,541.

Related: The Most Common Cars College Students Drive

However, there are ways to reduce those costs. This blog post will discuss what the best auto insurance for teens covers and how you can save money on your policy.

1. Bodily Injury Liability

When a covered driver causes bodily injury to someone else, this coverage helps pay for the other person’s medical expenses. It also covers any legal fees if the other driver sues you.

There are different bodily injury liability coverage levels to choose what fits your budget and gives you peace of mind.

Some of them include:

– bodily injury per accident

– property damage per accident

Bodily injury liability is required as per in most states. So if you’re found at fault for an accident, this type of insurance can help protect your finances.

2. Property Damage Liability

Property damage liability covers damage you cause to other people’s property in an accident. It includes repairing or replacing a damaged fence, garage, or car. Property damage liability is usually required by law.

Insurers must offer you $25,000 of property damage coverage per accident as part of your auto insurance policy in most states.

3. Medical Expenses

Medical expenses can add up when an accident happens and you or your passengers are injured. That’s why it’s important to have good coverage for you and your passengers.

The best auto insurance for teens will cover medical expenses for you and your passengers, no matter who’s at fault. In addition, it can help relieve some of the financial stress after an accident.

For example, it may cover things like:

-An ambulance ride to the hospital

-Emergency room treatment



It’s vital to note that your health insurance may cover some of these expenses, but not all of them. That’s why it’s good to have both types of coverage.

4. Personal Injury Protection (PIP)

PIP is the portion of your car insurance that covers you, no matter who’s at fault in an accident. In states with no-fault laws, PIP is required. PIP may be optional but worth considering if you live in a state with fault laws.

PIP coverage can help pay for things like:

* Lost wages

* Funeral costs

PIP coverage varies from state to state, so check with your agent or representative about what’s available in your area. For example, some may cover massage therapy or physical therapy to help you recover from an accident.

5. Uninsured/Underinsured Motorist Coverage

Incase a teens is hit by drivers who don’t have insurance or do not have enough insurance this coversge can come handy. Uninsured/underinsured motorist coverage can help pay for repairs if you’re hit by one of these drivers and any medical expenses that exceed your health insurance limits.

6. Comprehensive and Collision Coverage

Collision coverage can repair or replace a car if it’s damaged in an accident with another vehicle or object, regardless of who’s at fault. Comprehensive coverage reimburses you for damage caused by covered events such as theft, vandalism, glass breakage, flooding, fire, hail, etc. You can purchase both coverages together or separately.

Final Thoughts

Whether you’re a parent or guardian of a teen driver or a young adult about to leave the nest, it’s important that you understand your car insurance policy and what it covers. While your teenager is still learning the ropes of driving, they’re also more likely to get into an accident. That’s why it’s important to have good coverage in place.


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