What types of car insurance coverages are best for teens?

Liability Coverage is required in most states with minimums set by state. This is what pays for damages to another person's property and/or injuries if you're at fault for an accident. There are also "optional coverages" that can be required. These depend on car ownership. For example, if your car is leased or financed, the lender may require coverage for Collision Comprehensive Either way, teen drivers can benefit from Higher liability limits Collision Coverage This is important, as accidents can be more likely for inexperienced drivers, so added protection is nice Another optional coverage to think about is 24-Hour Roadside Assistance Coverage. This can help give teens and parents peace of mind with help for flat tires, dead batteries, running out of gas, getting locked out of the car, and towing.

Do I have to add my teenager to my car insurance policy?

No, but adding a teenage driver to an existing policy of a parent or guardian may be a more cost-effective option. However, if a parent or guardian has tickets or other serious driving offenses, it may be cheaper for a teen driver to get their own policy. The best way to figure out if adding your teenage driver is a good idea, is to get a quote. You can easily add a teen driver to your Liberty Mutual policy in your online account. For a new car insurance policy for your teenage or under 25 driver, you can start your free quote today .

When will my teenager's car insurance rate decrease?

For teen drivers, car insurance typically goes down incrementally for each year of driving. In most cases, this is until age 25-assuming they have a good driving record. Check with your insurance company to find out when your teen driver's rates are expected to go down.

Does Liberty Mutual have any other programs or discounts teens can benefit from?

Yes! With our RightTrack® program, we'll reward your teen for good driving behavior and could save you up to 30%. You'll keep this discount for the life of your auto policy. RightTrack provides feedback to your teen driver, helps them improve their driving habits, and encourages safe driving behaviors. We even guarantee a discount just for participating! Also, if your teen driver has a GPA of B or better, our Good Student Discount can help you save even more money.

What if my teen is away at school and doesn't drive much?

Just let us know! Our Student-Away-At School Discount gives you a discount if your teen driver is away at school and only occasionally drives your car.

What's gap insurance coverage?

Gap insurance helps pay the difference between what's owed on a vehicle loan and the actual value of it, if it's stolen or a total loss. This difference is what's referred to as the "gap". In general, this "gap" occurs when you buy a new vehicle, the value (actual cash value) can start going down right away. This is what your car insurance covers, not what you owe on a loan. This is where gap insurance can help.

How does gap insurance work?

Let's say you buy a new vehicle with a $25,000 loan. You get into an accident and your vehicle is totaled. At the time of the accident, your vehicle is valued at $15,000 but you still owe $20,000 on your loan. For a covered loss, you'd get paid for the value of your vehicle at the time of the incident ($15,000). This leaves $5,000 owed on your loan. With gap insurance, the difference would be covered, minus any deductible.

How much does gap insurance cost?

The cost of gap insurance depends on many factors. In general, the cost of gap insurance coverage varies based on Type of vehicle Actual cash value of the vehicle Where you buy the coverage (ex., insurance company, car dealer, or lender) Claim history, etc. In general, gap insurance may be cheaper if you buy it through your car insurance company vs a car dealer or lender.

Does gap insurance cover theft?

Yes, gap insurance may cover theft if your car is stolen and unrecovered.

Does gap insurance cover engine failure?

No. Gap insurance is only used in the event of a total loss from a covered accident or theft, not for mechanical repairs.

Does gap insurance cover deductible costs?

No. Even in the event of an accident covered by your gap insurance policy, you would still have to pay your deductible (the amount you pay out of pocket before your coverage kicks in). In other words, if the "gap" reimbursement amount is $4,000 and your deductible is $500, your total reimbursement amount would be $3,500.

Does gap insurance cover medical costs?

No. Gap insurance is only for vehicle losses and doesn't cover bodily injuries, medical expenses, lost wages, or funeral costs.

Is gap insurance worth it?

Gap insurance provides a lot of benefits, but whether it's worth getting depends on you and your situation.

What is negative equity, and does gap insurance cover it?

Negative equity is another term for when you owe more than your vehicle's current value. And yes, negative equity is covered by gap coverage.

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How long can I stay on my parent's car insurance?

How long can I stay on my parent's car insurance?

Being a driver on your parent's auto insurance policy is easy and can save you money. But how long can you stay on your parent's policy?

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mother and daughter hugging after packing up the car before daughter heads off to college

Unlike health insurance, which can have an age limit of 26, you can stay on your parent's car insurance policy indefinitely if you live in the same house. Now, if you move out, you'll probably need your own.

Here are some things to think about when deciding whether to buy your own car insurance policy or stay on your parent's car insurance.

Can I stay on my parent's car insurance even after I'm married?

If you and your spouse share the same primary residence as your parents, you can typically stay on their policy after you're married. Your spouse can also be added to your parent's auto policy as a driver if they live in the same house.

If I live in the same house as my parents but own my own car, can I stay on their insurance?

Depending on your parent's insurance company and state you live in, you may be able to stay on their auto insurance policy if you own your car. However, the car must be kept at the same address as your parents. If you own your car but keep it at another primary location or home, you'll need to buy your own auto insurance.

If I'm away at school, can I stay on my parent's car insurance?

Yes. You can stay on your parent's car insurance if their home is still your primary residence. Even if you take your car to school with you, you can typically stay on your parent's policy as a dependent.

Some insurance companies offer a Student-Away-at-School Discount¹ for parents with students away at school and only occasionally drive their car.

Can I stay on my parent's car insurance if I move out?

No. You must buy your own car insurance policy if your primary residence has permanently changed.

Am I automatically covered by my parent's car insurance if I live at their house?

No. To have coverage under your parent's auto insurance, you must be listed as an authorized driver on their insurance policy. Your parents must contact their insurance company to have you added to their auto insurance contract.

Will I get kicked off my parent's car insurance at 26?

No. You won't be kicked off your parent's car insurance when you turn 26, if you still live in the same house.

See how much you could save on car insurance when you only pay for what you need.

Begin your free online quote

Please note: Information presented on this page is intended to be general information about insurance and is not specific to Liberty Mutual policies. Policies and coverages vary by state and insurer. Contact your insurance company to understand specifics regarding your policy and coverages.

¹Discounts and savings are available where state laws and regulations allow and may vary by state. Certain discounts apply to specific coverages only. To the extent permitted by law, applicants are individually underwritten; not all applicants may qualify.

How long can I stay on my parent's car insurance?

Can I stay on my parent's car insurance even after I'm married?

If I live in the same house as my parents but own my own car, can I stay on their insurance?

If I'm away at school, can I stay on my parent's car insurance?

Can I stay on my parent's car insurance if I move out?

Am I automatically covered by my parent's car insurance if I live at their house?

Will I get kicked off my parent's car insurance at 26?

You could save up to 12% when you buy customized car insurance online

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