Insurance For Young People Doesn't Have To Be Expensive

For most American teens it's a rite of passage to get a drivers license. Pretty soon after that it's off to college or out on their own. Many get their first car during this time and that's likely the first time they're thinking about insurance.

Teenage and young adult drivers can add from 50 to 100% to a family's auto coverage cost. It's usually cheaper to have a teen driver on the family's policy rather than buying a separate policy. To further reduce costs, choose a car with a high safety rating. Check with the National Transportation Safety Administration for safety ratings. Other discounts may be available for good students. If a college student doesn't have a car during the school year and attends a school at least 100 miles from home, tell the insurance company. Rates may be lowered for the period the student is not at home.

Most college students or young people just starting out on their own aren't homeowners. But they do have belongings that need protection. A student living at home or in a college dorm usually has possessions, including a computer, TV, clothing, etc. covered by the family's homeowner policy. A student living off-campus probably will not be covered by the family's policy and should purchase renter's insurance. Compare prices on homeowners and renter's insurance at these sites: www.insuranceusa.com and www.usinsuranceonline.com.

In most cases, a full-time student is covered by a family's health plan til they graduate from college, or remain a full-time student up to 23 years of age. However, this may not apply to HMO coverage. If your HMO doesn't provide non-emergency coverage in the school's area, a separate policy should be considered. Most colleges have a clinic on campus and may offer supplemental insurance as well.