Student Auto Insurance: Coverage/Liability For Designated Drivers?

Student auto insurance is a type of auto insurance that is especially designed for student drivers. It takes into consideration the needs of student drivers that need to buy an auto insurance policy and addresses the related risk factors associated with student drivers.

Student Auto Insurance Considerations

While students usually buy a less expensive car, student car insurance is somewhat expensive. Insurance companies charge more for students because students are generally less-experienced drivers, may be more aggressive and are statistically more prone to accidents than older adult drivers. Furthermore, they often tend to drive for longer hours; therefore, they are more likely to have accidents or other types of driving related mishaps.

For the most part, there are two types of student car insurance available:  collision insurance and comprehensive insurance. Collision insurance provides coverage for damage caused in a car accident; however, it does not cover bodily injuries to (or medical expenses for) the designated student driver.

Collision insurance also provides coverage for car damage repair costs, guarantees on original manufacturer parts, and car rentals for the other driver involved in the accident. This type of student car insurance policy is cheaper, but offers limited coverage protection. It is usually better to search reasonably priced comprehensive car insurance. Comprehensive policies cover collision insurance benefits as well as offer medical coverage to the designated student driver.

Factors Determining Student Car Insurance Premiums

Different factors come are considered when determining the premium for student car insurance policies. Usually, female students receive lower premium rates than do male student drivers. Male drivers, particularly young students, are known for faster and more erratic driving and tend to be involved in more automobile accidents. Furthermore, the driving record of a student driver directly influences the policy premium.

Higher deductibles can also help bring down the costs of premiums. With higher deductibles, the policyholder has greater risk in the event of an accident, but the premiums are usually much lower. In addition the addition of theft deterrent devices can lower premiums as well.

Liability Considerations with Student Car Insurance Policies

While student car insurance policies will address some potential liabilities associated with student drivers, parents of student drivers should consider purchasing additional liability insurance. Policies such as umbrella liability policies offer considerably more personal liability coverage, and can protect the student driver and the parents of a student - in the event of a serious injury that occurs as a result of an auto accident.

If someone is injured, or worse, in an automobile accident, policy limits for most student car insurance policies can quickly be reached, and often exceeded. Therefore, it is important for parents of a student to protect the student and themselves. An umbrella liability policy can provide that protection.
blog comments powered by Disqus