What kind of auto insurance coverage should young adults have in place? People in this age group are considered high risk for car insurance coverage purposes. They are more likely to be involved in car accidents than someone who has a number of years of driving experience to draw on. As a result, they are charged higher rates for their coverage.
All drivers, no matter what their age, are required to have at least the minimum level of coverage mandated by their state in place to stay legal. This level of third party liability protection is a starting point when buying car insurance, and drivers should consider buying a policy with a higher limit in most cases. If the damages caused in an at-fault accident are higher than the available coverage limit, the driver is responsible for paying the difference personally. Rather than taking that risk, shopping around to find the best pricing on a policy which will provide a higher level of protection is a very prudent course of action.
Taking an approved driver’s education or defensive driving course is another effective strategy to keep costs for young adult drivers down. A new driver can be added to an existing policy as an occasional driver, as well. As long as the young person is living at home, he or she can be added to parent, grandparent or older sibling’s policy, and this will be much less expensive than buying a new policy where he or she is the primary driver.