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Auto Insurance Information for Young Drivers

By Compuquotes Team on March 27th, 2008
Auto Insurance

If you are a young driver, or the parent of a young driver, thinking of auto insurance premiums may cause you some apprehension and stress. In most cases, auto insurance rates for young drivers are extremely expensive. The following paragraphs will answer some of the most frequently asked questions regarding auto insurance for young drivers.

Firstly, you should know that auto insurance laws do vary from state to state. However, in most states, in order to get your driver's license, you must show proof of auto insurance. While full coverage insurance is not usually required, liability insurance is. This is to ensure your ability to pay for any damages caused by an accident you may cause. While liability auto insurance will not pay for damage to your own property or vehicle, it will pay for the damage you may cause with your vehicle, including bodily injury.

As a young driver, should you let your auto insurance policy lapse, the consequences can be ghastly. Every young driver should know that driving without any type of auto insurance is breaking the law. Most young drivers do not realize that they'll be asked to show proof of insurance at random, as well as during routine traffic stops. It is very important for young drivers to realize the ramifications associated with driving without auto insurance coverage. The first time a driver cannot provide proper proof of auto insurance, a ticket will normally be written with a fine attached ranging between $175-$500. For the second offense, the penalties stiffen. While the specific laws vary from state to state, the second time a driver fails to provide adequate proof of auto insurance, they could face fines up to $1,000, an impounded car, as well as a license suspension for up to 180 days.

Because of how auto insurance rates are determined, auto insurance premiums for young drivers tend to be more costly. Many separate research studies have concluded that younger drivers are more likely to become involved in automobile accidents than older drivers. This puts at higher risk of costing the insurance more money. This causes younger drivers to have to pay higher premiums for their auto insurance policies. When parents add their young drivers to their own policies, it is not unlikely to see their premiums double.

Other factors are often considered when determining auto insurance rates for young drivers. These factors can include:

� make, model, and age of vehicle to be ensured
� the young drivers prior driving record
� gender

There are many different pieces of information an auto insurance company may consider when determining the risk factor a young driver may be. While the methods used to determine a young drivers risk are most often very similar, every auto insurance company will not come up with the same end results. As a young driver, one auto insurance company may determine you to be a very high risk driver, while another insurance company may find you to be a moderate risk driver. Thus, it is very important to shop around, and do some research before deciding on an auto insurance company. As a young driver you should never go with the first auto insurance company you find, without first getting other quotes.

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