When you are a single parent, your plate can be pretty full. Car insurance might be the last thing on your mind but you may want to devote some time to understanding your unique needs. When it comes to car insurance for single moms and dads, price is important, but the best policy is not always the cheapest policy. Knowing what factors affect your auto insurance premium and how you can save on your policy might help you find coverage that fits your needs and budget.
Car insurance for single parents
When you are purchasing car insurance as a single parent, you may want to think about both coverage and price.
Car insurance companies often use demographics like your age, gender, marital status, insurance history and driving record, along with local accident statistics, your vehicle’s make and model, the coverages you choose and the discounts you qualify for, to determine your premium.
Increasing certain coverage limits can help protect your finances in the event of an accident, but increased limits do cost more money. Similarly, increasing your comprehensive or collision deductibles — if you have full coverage — can lower your premium, but you will pay more if you file a claim for damage to your vehicle.
Single parents and teen drivers
As a parent, the day your teen or young driver gets behind the wheel of a vehicle can be terrifying, but the cost to add your teen driver to your insurance policy may be even more frightening. Since teenagers are new to driving, insurance companies consider them one of the most high-risk groups on the road. In fact, drivers between the ages of 16 and 19 have the highest risk of motor vehicle crashes of any age group, according to the Centers for Disease Control (CDC). Although premiums will change as your teen gets older, you can expect to pay more for car insurance until your child reaches around age 25.
There are ways to save money on car insurance for teen drivers. Some companies offer good student discounts for teens with GPAs or letter-grade averages at or above a certain level. Many companies also offer discounts for teens who took driver training classes. And if your child is away at college without a vehicle, you may be able to put a distant student discount on your policy.
Car insurance coverages for single parents
When it comes to selecting coverages for your policy, remember that car insurance policies are packages of several different coverages. Although some coverages are often required by your state and some are optional, the following coverages could be beneficial …….