How Much Insurance Should I Have on my Sixteen Year Old Driver?
by
Heath Clayton Murphy on Mar. 19, 2015
Accident & Injury Car Accident Accident & Injury Accident & Injury Personal Injury
Summary: Everyone knows that teenagers are extremely likely to get in an accident. So the question becomes how much insurance coverage should you carry on a teenaged driver. My answer, as much as it takes to protect your assets.
This is not my first blog about teenaged drivers, nor will
it be my last. You may be the parent of
the most well meaning, responsible teen alive.
That teenager still has fairly high odds of being involved in a car
accident before they turn 20. [1] Unfortunately, for the parents, the fault in
such accidents generally lies with the inexperienced driver. Even a conscientious teen driver can cause an
accident because they are simply not experienced behind the wheel and lack
experience to draw upon when anticipating the actions of others. In
How Much Insurance is Enough?
I recently heard a particularly horrifying story where an
insurance agent recommended that a couple who is financially solvent should
purchase a policy for their 16 year old child in the minimum amounts allowed
under Florida Law. [3] In other words,
they were carrying a policy which provided $10,000 in bodily injury coverage
and $10,000 in property damage coverage.
The teenager caused an auto accident, in which the damages were well in excess
of those policy limits. Of course the
injured party will look to the parents of the teenaged driver in that situation
to pay the difference. It is important
to remember that a very minor accident can cause property and bodily injuries
in excess of the minimum
Therefore, it is important to examine your assets and choose an amount that protects that. I have heard Dave Ramsey recommend that, at a minimum, a policy for $500,000 should be maintained. The cost of this insurance when you add your teenaged driver will be shocking. There are ways to minimize the additional costs. Good grades and driver’s education courses are two ways to reduce the cost impact of adding a teenager to your insurance policy. Check with your insurance provider regarding their approved driver’s education courses, as not all classes will qualify for a discount. Does your child really need a new BMW or will an older sedan suffice? Remember, it’s very likely a car they will wreck. Also, many insurance companies will offer discounts for installing devices which monitor the driving habits of your child or will actually limit the speed, acceleration and volume on the radio.
What About Children Over the Age of 18?
I can almost hear the collectively sigh of relief from
parents whose children have safely reached the age of 18 and beyond. After all I did say that you would only be
responsible for the damages caused by minor children, right? So your child has reached the age of 18 and
has moved into their apartment in downtown
Contact The Law Offices of Bobby Jones
Have you or a loved one been injured in an accident caused
by teenaged driver? Contact an experienced
Whether you were a pedestrian, a bicyclist, or the occupant of car, motorcycle or boat and have been injured in an accident, you should immediately call an experienced personal injury attorney at The Law Offices of Bobby Jones at (727) 571-1333 during regular business hours or (727) 753-8657 on weekends or after regular business hours. We will evaluate your case for free and you will never pay us a dime unless we recover compensation for your injuries.
The Law Offices of Bobby Jones
6570 30th
Avenue North
http://bobbyjoneslaw.com/personal-injury/
References:
[1] http://www.teendriversource.org/stats/support_teens/detail/107
