Insurance for young drivers

Insurance for young drivers

When teenagers reach the age of 16 he or she may be eligible to go behind the wheel of a car. Most young drivers who are new to driving are eager to test the roads as soon as they have possession of a driver’s license and a car. While this can be an exciting time for parents, the anxiety of the unknown start to build up. Parents also worry about how their young driver may affect their insurance premiums once they are added as drivers to their existing auto policies.

Insuring new and inexperienced drivers can be expensive. Insurance companies find many young drivers to be most risky for reasons including lack of experience, peer pressure, and attitude toward danger while driving on the road.

Luckily, in the CNMI auto insurance premiums are constructed in a two-tier bracket: over 25 and under 25. The age bracket options are offered depending on the type of vehicle covered on the auto policy. For instance, a policyholder for a sedan with coverage for comprehensive and collision have the option to purchase insurance for drivers who are either over or under the age of 25. A policyholder for a light truck will automatically have to purchase coverage for drivers with a valid driver’s license, regardless of age.

Get the best deal

If you plan to insure your young driver, shop around. Although insurance companies in the CNMI work around an auto tariff to determine premium, you may still see differences when purchasing an auto insurance policy with higher limits. The standard coverage for mandatory third party auto liability in the CNMI is $15,000 for bodily injury per person, $30,000 for bodily injury per accident, and $15,000 for property damage per accident. These limits can increase upon request, but it will come with a price tag.

Your deductible can make a difference

One of the ways in which you can save on premium is to increase your deductible. Although it is not advisable to do so, it is one way to reduce premiums. A deductible is the amount that the insured or the policyholder must pay before the insurance company pays out for a claim.

Responsible driving at a young age

Not till the recent eradication of a CNMI law that required all new drivers to pass driving school, the community felt most at ease by the thought of drivers having to go through a series of lectures and driving tests before obtaining a driver’s license. For now, however, parents of first-time drivers should provide private lessons and establish rules to minimize the risk of a vehicular accident.

For more information on auto insurance covering drivers below the age of 25, call Pacifica Insurance Underwriters, Inc. at 234-6267 or visit their office located at Joeten Center in Susupe.

You may also visit HYPERLINK “http://www.pacificains.com” www.pacificains.com or send an inquiry via email to HYPERLINK “mailto:piui@pacificains.com” piui@pacificains.com. Pacifica Insurance Underwriters, Inc. is a general agent for Century Insurance and Tokio Marine Pacific Insurance Limited.[I] (Pacifica Insurance)[/I]