What's Happening?
Consumer Reports has provided guidance for families with teen drivers, emphasizing the importance of selecting the right vehicle and insurance coverage. Teen drivers are statistically riskier on the road,
leading to higher insurance premiums. Consumer Reports, along with the Insurance Institute for Highway Safety, has identified over 50 used cars under $20,000 that offer features designed to prevent crashes and provide high levels of crash protection. Popular models include the Honda Civic, Toyota Corolla, and Hyundai Tucson. The report advises against placing teens on separate insurance plans, as this typically results in higher costs. Instead, families are encouraged to shop around for better rates, as loyalty to one insurer does not always pay off. Consumer Reports found that policyholders who switched insurers saved a median of $461 annually. The report also stresses the importance of maintaining liability insurance despite the temptation to cut costs.
Why It's Important?
The guidance from Consumer Reports is crucial for families looking to manage the financial burden of insuring teen drivers. With car crashes being the leading cause of death for individuals aged 15 to 24, choosing a safe vehicle and adequate insurance coverage is vital. The advice to avoid separate insurance plans for teens can help families save money, while the emphasis on liability insurance ensures that drivers are adequately protected. This information is particularly relevant as insurance premiums for teen drivers can be significantly higher than for experienced drivers, impacting family budgets.
