As a newly licensed driver, you begin making the transition from a child to an adult. That means added responsibilities, like purchasing car insurance.
In Wisconsin, all drivers are required by law to carry a minimum amount of coverage. Failure to comply with those laws could lead to financial and legal consequences. As a new driver, however, you probably have a lot of questions concerning where you can get coverage and how much coverage you need. That is why we have assembled this quick guide to teen car insurance.
Continue reading to find answers to your questions and learn more about what you can expect from your first car insurance policy.
How Much and What Type of Coverage Do You Need?
As a teen driver, it may be tempting to ask for the most affordable car insurance for teens available – especially if you are paying for coverage on your own. Doing so, however, could be a mistake. There are multiple types of coverage available to teen drivers, each of which offers different benefits. The two primary coverages include:
This is coverage for the injuries and property damage you cause if you are at-fault for an accident. If you choose limits that are too low, you might be held personally liable for any damages that exceed the limits on your policy.
This is coverage that reimburses you for damages to your vehicle if you are in an accident. Since repairs can cost thousands of dollars, skipping on this coverage could leave you without transportation if you get into a wreck.
Your independent insurance agent can explain the differences in coverage types and review additional types of important protection, such as uninsured motorist protection, underinsure motorist protection, medical payments coverage, roadside assistance, comprehensive insurance, and more.
Premiums Will Change through the Years
Expect the premiums on your first car insurance policy to be relatively high – especially if you have an individual policy. The cost of insurance is based on the likelihood of you having a claim. Since young drivers are more likely to be involved in accidents, they cost more to insure. In addition to inexperience, other factors work against teen drivers, too. For example, your lack of credit history automatically penalizes you with insurers. You also do not qualify for multi-line coverage discounts since you probably do not own a home or other insurable asset yet.
That is one reason why having an individual policy is typically much more expensive than piggy-backing onto your parent’s car insurance coverage. Although teen insurance premiums can still be higher on a family insurance plan, they are generally more affordable than if you went solo. Make an effort to drive as safely as possible. If you maintain a spotless driving record, you should see your premiums start to deflate after your first couple of years behind the wheel.
Don’t Drop Your Coverage
Not only is it illegal to drive without insurance in Wisconsin, but you could pay the price later. In addition to fines if you get caught, you can also be penalized by insurance companies in the future due to gaps in your coverage history. Not to mention, going without coverage puts you and other drivers at risk.