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Teach your teen about car insurance
We teach our teens all about driving but few parents remember that there’s another important aspect to becoming a new driver and that is understanding enough about insurance to be prepared to get Michigan car insurance quotes. Because teens are not experienced in these kinds of things. Here are some of the factors a teen should learn about:
Michigan requirements on coverage. Every new driver should know what the state’s requirements are for liability and other coverage. That’s where it has to start. Teens should also understand that the minimums required by the state may not be sufficient coverage for their particular needs. If your car is financed, the bank may also require a certain amount of coverage. This must be checked into before settling on coverage limits.
Here are some important concepts to teach your teen:
Coverage for liability pays if a driver causes bodily to someone else or property damage—due to negligently operating a motor vehicle. Others who use your car may also be covered. Some policies cover a defense lawyer if needed. It’s important to understand what your liability insurance really covers.
If a pedestrian or occupant of another car you hit is injured or dies, bodily injury coverage kicks in. Whether or not it covers passengers in your car often depends on if they live with you.
Should hit another person’s car or property such as mailboxes, buildings, utility poles, the property damage part of your policy kicks in.
Uninsured motorists are a big problem, so check into coverage for your bodily injury caused by a motorist who either has no insurance or a hit and run driver. Underinsured motorist bodily injury insurance will pay the difference between the former limits and the minimal liability limits of the other driver.
Make sure your teen knows that all of these different kinds of coverage are meant to protect them from financial losses.
Encourage your teen to keep a clean driving record and explain how that impacts what they will pay for coverage. You might also encourage them to have a clean credit history for the same reason.
It’s never too soon to teach a new, young driver about these things. He or she will benefit from understanding the concepts and coverages early so that their choices are informed and logical. Knowing about what influences the cost of coverage could even encourage them to have better driving habits.