Buying Teen Car Insurance
Reader’s Question:
My teenage daughter just got her student license here in South Dakota, and did okay in her driving classes at school. Now, she wants to drive our car! Do I need to get separate car insurance for her?
Kate
Sioux Falls, SD
Hi, Kate, they grow up so fast don’t they? My suggestion to you would be to get on the phone with your car insurance agent in South Dakota and ask him about the specifics of your policy. For most car insurance providers, your daughter should automatically be covered under your car insurance policy. Since you have insured the vehicle, anyone who drives that vehicle should automatically be covered.
However, each car insurance company differs in their rules and specifications. Some will require you to have your daughter listed down under your policy as well to ensure her coverage. You need not get a separate policy for her since she doesn’t have her own car yet and she only has a learner’s permit and not a full fledged driver’s license.
Did you know that teenage accidents occur more than accidents involving adults? Not that I’m trying to scare you, but this may be a good time to review your car insurance policy and determine whether you have enough coverage. Take into account the costs you may have to pay for out of your own pocket should an accident happen. Most states only require liability insurance coverage, so if this is all you got, maybe you’d like to add some comprehensive insurance or collision damage insurance, as well.
Liability Insurance and Physical Damage Insurance
Reader’s Question:
Can you tell me the difference between the liability and physical damage?
Karen
Sioux Falls, SD
Liability coverage covers the damages your vehicle does to others, damage for which you are legally responsible and if you do not have liability insurance you would need to pay out of your pocket for damages you cause.
Physical damage coverage consist of comprehensive and collision coverage. I will explain each one of them.
Collision coverage covers damage to your car when your car crashes, or is hit by, another car, or other object. This type of physical damage coverage pays to repair your automobile, less the deductible you choose at the onset of your car insurance policy.
Comprehensive coverage covers your car, and sometimes other automobiles you may be operating, for losses resulting from incidents other than collision. Comprehensive coverage typically covers your car if its stolen, damaged by flood, fire or animals. This comprehensive coverage comes with a deductible as well.
