{"id":6063,"date":"2022-04-12T13:00:18","date_gmt":"2022-04-12T20:00:18","guid":{"rendered":"https:\/\/www.costulessdirect.com\/?p=6063"},"modified":"2022-12-21T11:45:12","modified_gmt":"2022-12-21T11:45:12","slug":"the-unique-car-insurance-challenges-of-a-college-driver-in-california","status":"publish","type":"post","link":"https:\/\/www.costulessdirect.com\/blog\/the-unique-car-insurance-challenges-of-a-college-driver-in-california\/","title":{"rendered":"The Unique Car Insurance Challenges of a College Driver in California"},"content":{"rendered":"\n

As a parent, you might think the combination of the high cost of your child\u2019s college education and sky-high cost of auto insurance<\/a> for the college driver in California as somewhat of a double whammy. You might have actually started experiencing the sticker shock of insuring your teen driver when they were as young as 16. <\/p>\n\n\n\n

To begin with, California drivers pay more, in general, for auto insurance than drivers in many other states. And, yes, young drivers pay the most\u2014often as much as double the coverage costs of older drivers. We\u2019ll look into why auto insurance for college-age (and younger) drivers is so high and then provide tips for minimizing that cost as much as possible. <\/p>\n\n\n\n

Let\u2019s start with a bit of an explanation. <\/p>\n\n\n\n

Why Auto Insurance for College-Aged Drivers Costs So Much More <\/h2>\n\n\n\n

Car insurance, like all forms of insurance, is really a bet. Underwriters set rates for segmented groups after crunching numbers to determine the likelihood that the insurance company can keep more money than they have to pay out in settlements for that group. <\/p>\n\n\n\n

In the case of the youngest drivers, those in roughly the 16-25 age group, underwriters have found that they have to set rates higher because these drivers typically cost the insurance companies more to cover. And young males pay the most. <\/p>\n\n\n\n

There are several reasons for this. First, the youngest drivers are the least experienced behind the wheel. They haven\u2019t been driving for very long, so they\u2019re typically not all that good at it. <\/p>\n\n\n\n

These drivers, especially young males, also tend to be more reckless behind the wheel. They drive faster and take more chances. They might be likelier to drive after consuming alcohol or other controlled substances. Moreover, statistically speaking, younger motorists get into more accidents than older drivers. <\/p>\n\n\n\n

Yes, it\u2019s unfair if this doesn\u2019t even begin to describe your own highly responsible college-age driver. But the reality is that auto insurance companies classify drivers in these groups and start setting rates by addressing group<\/em> statistics more than individual experience. <\/p>\n\n\n\n

However, there are ways to minimize<\/a> the impact of this group grade and find auto insurance for your college driver that\u2019s affordable while still meeting their needs. Let\u2019s take a look. <\/p>\n\n\n

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Consider Minimum Coverage (Maybe) <\/h2>\n\n\n\n

Like most US states<\/a>, car insurance is mandatory in California. And, again, as with most of the rest of the country, the Golden State allows drivers to acquire a minimum level of auto insurance coverage<\/a> as a way of reducing the cost. <\/p>\n\n\n\n

That minimal level is liability coverage. The purpose of liability is to cover the insurance costs of others in the event of an accident caused by the insured driver. In other words, if your California college-aged driver causes an accident that totals your child\u2019s vehicle as well as that of the other driver, your insurance policy will cover the damage to the other<\/em> car \u2014 leaving it to your child to pay for damages to his or her vehicle. And what the insurance company will cover for the other driver is only up to the policy limits \u2013 if the damage or injuries cost more, that will also need to come out of somebody\u2019s pocket. <\/p>\n\n\n\n

You can see the downside. While this form of coverage will cost you less in premiums, making this option definitely worth investigating, it can leave you holding the bag, paying the full cost of repairing or replacing your child\u2019s car with absolutely no help from your insurance company. That could mean thousands of dollars out of pocket.  <\/p>\n\n\n\n

Consider Higher Levels of Coverage <\/h2>\n\n\n\n

Many drivers choose to get what we call full coverage<\/a>. Full coverage consists of liability, comprehensive car insurance, and collision insurance \u2013 all in one package. If your car \u2013 or your child\u2019s car \u2013 is financed, more than likely the lender will require full coverage insurance. Remember how we talked about the high cost of car insurance for this age group? Full coverage here is ridiculously high, so be prepared. <\/p>\n\n\n\n

If you don\u2019t have a lender requiring full coverage, another way to get better protection than just the state-required minimum is to increase your liability limits. California requires 15\/30\/5. What that means is: <\/p>\n\n\n\n