New Law Offers Auto Insurance For Teenagers

The reason for mandatory auto insurance coverage isn’t really to protect vulnerable drivers from their own laziness. That’s why almost all states require liability coverage, but only a few states require their drivers to buy insurance that actually protects them in the event of an accident. The real reason mandatory auto insurance coverage exists is to protect you. In this article I will explain what this means and why it is a very good idea to carry at least liability auto insurance.

If you hit someone and they are injured, without insurance you could be sued for their damages. If you don’t have the right amount of coverage your damages could easily top $10 million or more. In fact, the legal fees involved in a case like this could bankrupt your business, so if you don’t have the money to pay for your victims medical expenses and damages you could face losing your business. A mandatory auto insurance policy covers these damages up to a certain amount called the limit.

Carrying liability coverage on your vehicle is a requirement by law in New Hampshire and other states like New York, but many people simply refuse to purchase auto insurance at all. The reason for this refusal is that the premiums charged by the insurance industry are high. Many people simply can’t afford the high premiums. If you don’t mind paying a lot of money to insure your car then by all means purchase auto insurance. But if you do decide to purchase auto insurance then you should consider a couple of things first. Read my previous articles for more information about mandatory auto insurance in New Hampshire.

Some auto insurance companies offer discounts for good drivers. If you’ve never been in an accident and haven’t previously had a speeding ticket or any moving violation then you may qualify for a good driver discount. Also keep in mind that there are some states that charge lower premiums to teenage drivers. There are several factors involved in deciding the premium for a teenager. Many states look at a teenagers driving record, their behavior, age, sex, and whether they live in a no-fault state or no-fault only state.

Before you purchase any insurance, it’s very important that you research all the possible insurers that also sell automobile coverage. In New Hampshire state officials introduced a new law last year that requires all motorists to have at least PIP insurance (pre-paid medical coverage). This new law is in effect until next October, when another new law takes effect. Until that time, any motorists who don’t have a PIP will have to pay a fee for this coverage.

If you don’t already have insurance, then make sure you purchase it right away. The cost of insurance can actually increase each year, especially if you have several traffic violations on your record. Also remember that this type of insurance is called “no fault” insurance and usually carries a much higher premium than traditional insurance does. Make sure you have enough coverage so that in case you are found at fault in an accident you’ll be able to afford the repairs and medical bills.

Author: Trimwell