Cheap auto insurance for teenagers in North Carolina

All drivers in the state of North Carolina must have the minimum mandatory auto liability insurance. This law includes your teenage driver. You must carry $30,000.00 for each individual injured or killed in an accident, $60,000.00 for all the people involved in the accident, and $25,000.00 to cover all property damages. They must also have uninsured/underinsured bodily injury per person of $30,000.00, bodily injury per accident of $60,000.00 and property damage of $25,000.00. Since statistics show that the first year behind the wheel of a car is the prime time for teenage automobile accidents, your insurance company may recommend that you carry comprehensive and collision on your teen as well as raising the limits on your liability insurance and uninsured/underinsured to more than the state requirements.

As the parent, you are required by the state of North Carolina to take financial responsibility for your teenage driver. Your teen driver must carry their proof of insurance in the vehicle at all times. They must produce proof of insurance upon request by the authorities. In North Carolina, this is the Insurance Identification Card from your insurance company. This card will include information concerning your coverage such as the name of the insurance company, the dates of coverage, and the amount of liability coverage. It also needs to include the policy number, VIN number of the vehicles covered, the make and model of the vehicles as well as the name of the policy holder and all the individuals covered by the policy. The auto insurance needs to be authorized by a qualified auto insurance company. Even if the teen is not at fault for an accident, they must provide proof of insurance to the officer on the scene. They must also have proof of insurance for any regular traffic stop. This will result in fines and penalties.

If your teen’s insurance lapses or cancels for any reason and they are notified by the state, they have ten days to rectify the matter. If they fail to provide proof of insurance in the given time, they will lose the license plates to the vehicle for 30 days minimum. In order to reinstate the registration they will need to provide proof of insurance, pay a $50.00 restoration fee, a $50.00 service fee, and pay all applicable license plate fees. If they are caught driving without insurance coverage or are in an accident without insurance, the penalties will be harsher. They may lose their driver’s license and have 3 points added to their driving record.

Adding your teen to your policy will generally be less expensive than putting them on their own auto insurance policy. Even then, the cost of adding your teen to your insurance policy will raise your premiums from $1200.00 to $4900.00 per year. On average, the premium will raise approximately $2,171.00 per year.

For each successive year that your teen maintains a good driving record, the premiums will most likely go down. To maintain a good driving record, your teen cannot have any traffic violations or accidents on their driving record. They cannot be picked up for a DUI or talking on their cell phone. Safety devices such as anti-lock brakes side air bags, automatic seat belts and daytime running lights may also reduce your premiums. The state of North Carolina enacted a no cell phone or texting law for teenage drivers in December of 2007. Teens are not allowed of operate any communication or other technical device while in control of a motorized vehicle. Your teen can be fined $25.00 for breaking this law.

In addition to a clean driving record, teens who maintain a “B” grade point average will also receive a discount on insurance premiums. Another discount available for teens will be given when the teen has successfully completed a state approved safe driving course. The type of car your teen drives will also affect your insurance premiums. Don’t put your teen in a luxury car or sports car. It may also help lower your premiums if you avoid the top 10 stolen cars in the state of North Carolina. These cars include:

1. 1996 Honda Accord
2. 2000 Honda Civic
3. 1996 Jeep Cherokee/Grand Cherokee
4. 1998 Ford Explorer
5. 1994 Toyota Camry
6. 1997 Ford F150
7. 1996 Ford Taurus
8. 1994 Dodge Caravan
9. 1994 Ford Ranger
10. 1997 Chevrolet Cavalier

Following these guidelines will save you between 10 to 15% on your auto insurance premiums for your teenage driver.