Why Young, Inexperienced Drivers Should Take Caution with Auto Insurance

One of the biggest advantages of approaching adulthood is gaining the privilege to drive a car. But for young or inexperienced drivers, the horrors of obtaining a car and auto insurance can be quite daunting. Getting auto insurance is a necessary step to obtaining a legal driver's license in any state and should be approached with caution and precision so as to avoid one day having your own auto insurance horror stories to tell.

After dropping out of school when I became pregnant with my youngest son, getting auto insurance when I became of legal age to do so was a very frustrating task. I had no prior driving experience and wound up having to pay nearly $400 per month for full-coverage insurance, a price that more than doubled what I was paying for car payments each month. To avoid having your own auto insurance horror stories written into your life, there are a few key points that should be considered before establishing an auto insurance policy.

Getting Auto Insurance if You Dropped Out of School

If you dropped out of school you are, by law, restricted from obtaining a legal driver's license until the age of 18. Even then, you must be able to provide proof of insurance before you can be issued a license. There are a few different options to consider when obtaining auto insurance after you have dropped out of school. If you intend to purchase a car or if you already have one you have the option between liability insurance or seeking full coverage auto insurance. Because you are an inexperienced driver, the chances are high that your car insurance is going to be expensive. It is only required by law that you have liability insurance but don't rule out full-coverage insurance just yet.

What Kind of Auto Insurance Should You Get?

Getting auto insurance if you're an inexperienced driver can quickly become frustrating if you are unfamiliar with the various types of auto insurance. The last thing that you want is to establish auto insurance and then find out that you're paying way too much or could have gotten a better rate or even better coverage through another insurance agent. As tempting as it may seem to establish insurance long enough to get your license and then cancel it, this will likely lead to you losing your license and potentially facing further consequences. (I didn't do this, but it's not recommended.)

Non-Owners Auto Insurance

If you do not own a car, non-owners auto insurance is likely the most inexpensive way to obtain car insurance so that you can get your license. Essentially, non-owners insurance ensures that you are covered to drive anyone's car whether it is your parents' car or a friend's car and can be significantly cheaper than liability or full-coverage insurance. You can generally expect to pay around $60 per month if you are an inexperienced driver. Take the time to consider how often you would actually be able to drive someone else's car. If you're only going to be driving once or twice per week, that extra bill may not be worth it.

Liability Auto Insurance

Liability is among the most common types of insurance and is the minimum amount of coverage required by law to obtain a legal driver's license. The cost of liability insurance is situated between non-owners insurance and full-coverage insurance. This type of auto insurance is great if you are a safe driver but it can also lead you to higher out of pocket expenses in the event of an accident. You may be getting off cheaper monthly but if you get into an accident you may have to pay fees that you may have otherwise not been responsible for if you had full-coverage.

Full Coverage Auto Insurance

Full coverage auto insurance is the most expensive auto insurance that you can get. It also provides the most protection. If you are considering full coverage auto insurance it is for one of two reasons: either you want the additional protection or you are making payments on a car (in which case you are legally bound to carry full coverage insurance until you have paid off the car and you own it). Although it can be costly (as much as $500 per month for inexperienced drivers) it can also protect you and anyone else involved if you get into an accident. If you have children, like myself, the extra protection that full-coverage car insurance offers them far outweighs any costs associated with the monthly premiums.

As you gain experience driving and are able to maintain a clean driving record your insurance premiums will go down. Although I am still paying high prices for full coverage insurance until my car is paid off, I know that the benefits of full coverage far outweigh the disadvantages. However, I still regret not taking more time to search around and find a better insurance policy. To find the best auto insurance for you, take the time to speak with various insurance agents regarding the advantages and disadvantages of different policy options before making a decision.

Sources:

"Types of Auto Insurance Coverage Explained" CarInsurance.com
"Car Insurance for Drivers Who Don't Own Vehicles" Insure.com