The combination of lack of experience and overconfidence behind the wheel makes teens and young adults the riskiest age group to insure. Despite the fact that this age group makes up less than 17 percent of drivers on the road, they are responsible for approximately 40 percent of accidents.
Young drivers must carry the same level of liability coverage as other people on the road. Since they are at a higher risk for being involved in an accident, it makes good sense for parents who are adding teens to their car insurance coverage to increase their policy limits. Iowa is a tort state, and there is no cap on the level of damages that an injured person can seek in an accident.
If the at-fault driver has car insurance coverage in place, his or her insurer will pay out on the claim made by an injured person – but only up to the policy limit. Any amount owing above this level must be paid by the person who caused the accident personally.
Adding a young driver to an existing insurance policy is going to cause premiums to increase. There are discounts available from Iowa car insurance companies that can help take the sting out of paying for coverage for drivers in this age group. Good students who maintain a B average or better or who have completed a safe driving course can get discounts in the 10-15 percent range.