It’s no secret that providing car insurance for a teen driver is an expensive proposition. Because they lack driving experience, teens are more likely than adults to be involved in accidents and cause injuries to themselves and others. This drives auto insurance rates up for these drivers in all states, including Arizona.
Nevertheless, auto insurance is mandatory for teen drivers in Arizona. This state’s laws mandate that all drivers, regardless of age, maintain liability coverage of at least $15,000 for injuries to one person, $30,000 for injuries to more than one person, and $10,000 for property damage. These coverages are designed to provide limited financial protection for other drivers and passengers if your teen causes an accident while driving on Arizona roads.
Your teen should also carry uninsured motorist coverage, which pays for her injuries if she is involved in an accident with a driver who does not carry the minimum Arizona liability coverages. Nearly one in five Arizona drivers are uninsured, so this coverage can help prevent your from having to pay for your teen’s medical expenses out of pocket.
How can you insure your Arizona teen without breaking the bank? One of the simplest ways to save money on your teen’s car insurance is to let him drive an older family car instead of a new luxury vehicle or sports car. Because rates are determined by both driver and vehicle characteristics, an older sedan might cost half as much to insure as a Corvette or a BMW. An older vehicle also give you the option of skipping comprehensive and collision coverages, which can save you even more on your teen’s Arizona car insurance premiums.
Another easy strategy is to ask your Arizona agent about available discounts. If your teen maintains good grades at school, he might qualify for a discount of 5 percent or more. Insuring all of your cars on a single policy might earn you a multi-car discount, which could save you another 5 to 10 percent. Choosing a car with features such as anti-lock brakes and an anti-theft device might also qualify you for a discount, particularly if you need to carry comprehensive and collision coverages on your teen’s vehicle.