Auto Insurance Questions and Answers For Young Drivers

FOR IMMEDIATE RELEASE
Atlanta, Georgia, United States of America (Free-Press-Release.com) September 28, 2011 -- Young drivers inherit many responsibilities when they turn the key, shift into gear and hit the open road. In addition to the importance of learning and practicing safe driving skills, new motorists also need to know the particulars of their auto insurance coverage. Laws may vary by state, but some basic information will go a long way in making sure young drivers are properly insured.

”It is important for parents to discuss the specifics of their auto insurance policy with their young drivers,” says Allstate spokesperson John Heid. “Parents should contact their insurance agent if they have coverage questions, such as when a college student uses a car while attending school in a different state.”

Allstate Insurance provides answers to some of the most common questions of young drivers:

Am I covered if I drive someone else’s car?
In most states, you would be covered through the vehicle owner’s auto insurance policy — if the owner granted you permission to use the car. Your own policy may also cover you once the vehicle owner’s coverage is exhausted.

When should I buy my own auto insurance?

It depends. If you are buying a car, you should arrange for auto insurance before you take possession. Also, if you are covered on your parent’s policy but are planning to purchase your own insurance, do so before your parents remove you from their policy. You’ll need to call your insurer well in advance to assure that you do not have a gap in coverage.

Why not just purchase the cheapest insurance I can find?
Low rates draw attention, but it’s more important to understand the amount and type of coverage you’re getting for your money. A low rate could mean lower limits and narrower coverages. When shopping around, ask for a specific list of coverages and limits to be sure you know what you’re paying for.

Why do I have to pay higher rates because I’m younger and unmarried?

Based on experience of insuring many different types of drivers over long periods of time, data has shown that young, single people are higher insurance risks. But many factors beyond age help determine rates for individuals, including driving record, the make and model of your car, the mileage you drive, even where you live.

What can I do to help lower my insurance rates?

• Drive safely. Observe speed limits, eliminate distractions (using a hands-free device with your cell phone for example) and avoid situations that may lead to confrontations or road rage.
• Increase your deductible. A higher deductible can lower your premium. But be sure you can still afford to pay the deductible should you need to file a claim.
• Consider your car’s make and model. Contact an agent to see what cars are less expensive to insure.

• Remember discounts. Allstate offers several discounts, including Good Student, teenSMART, defensive driver, anti-lock brakes, a passive restraint system (air bags) and many more. (Discounts may vary depending on state).

For more information on this topic or other safety topics, contact your local Allstate agent.

About the Allstate Corporation

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer known for its “You’re In Good Hands With Allstate®” slogan. Now celebrating its 80th anniversary as an insurer, Allstate is reinventing protection and retirement to help nearly 16 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via www.allstate.com and 1-800 Allstate®.

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