If you have ever shopped for insurance because you were thinking about buying a car and the prices were shocking, it’s probably due to the fact that you are not currently insured. This is a double whammy for young drivers because they are already being charged the highest rates, but then with having no prior insurance coverage, it makes it even worse.

So what is a teen to do when they don’t own a car, their parent(s) won’t insure them on their policy, and it’s getting closer to the time where the teen will need insurance?

Car insurance policy
Try to keep auto insurance costs low from the start by building a good driving history.

1. Try talking to your parent(s) again about it and see if they will consider a few options.

2. See if another family member can add you as a driver and you pay them the difference in premium.

3. If you are fortunate enough to get someone to allow you as a driver on their policy, start saving up money for a car because in six months, you can call around and get your own insurance for less than what you could starting off with no insurance.

  • Your insurance still will not be cheap if you are under the age of 25. However, with continuous insurance coverage, you will no longer be in the highest risk.
  • To keep your costs lower, plan on buying a car that just needs liability coverage. Any time that you get a car loan, the lender will require collision and comprehensive coverage. That can double or triple your rate.
  • Make sure you ask for a copy of the auto policy you were on showing you as a driver so you can send that to your new insurer if they need it.
  • Also make sure that you either match or increase the liability coverage from what you carry on your other policy. For example, if your uncle added you as a driver and he has $50,000 for liability, get the next step, which is $100,000. Because you have continuous coverage, you are only going to see a few dollars difference usually, and you will be much better protected. The liability is what pays out if you are sued or you injure someone in an accident.

4. If you cannot get anyone to add you as a driver, get a non-owner policy.

  • Most companies offer this. If you call one and they don’t know what you are talking about, call the next one because someone will know.
  • It might even be better to deal with a local agent for this, especially a broker, who has access to several different insurance companies and various products to offer.
  • Again, once you have maintained this policy going on six months, that is when you want to start searching around for better options or to buy a car.

Not owning a vehicle isn’t the end of the world. It’s nice to know that there are plenty of options, but just be sure to pick something that will provide you continuous coverage until you can get your own vehicle and your own coverage. Do not cancel any coverage until you have your own started. This will put you in the best position to have affordable car insurance.