Cheap auto insurance for teenagers in Tennessee

All drivers in the state of Tennessee must have the minimum mandatory auto liability insurance. This law includes your teenage driver. You must carry $25,000.00 for each individual injured or killed in an accident, $50,000.00 for all the people involved in the accident, and $15,000.00 to cover all property damages. As of December of 2008, the law was changed to add other options to the minimum insurance laws. You must have a single limit policy of $60,000.00 per accident, a deposit of $60,000.00 with the insurance commission or file and execute a bond in the amount of $60,000.00. 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 uninsured and underinsured on your teen as well as raising the limits on your liability insurance to more than the state requirements.

As the parent, you are required by the state of Tennessee to take financial responsibility for your teenage driver. Your teen driver must carry their proof of insurance in the vehicle at all times. The most commonly accepted proof of insurance in most states is an insurance identification card issued by the insurance company. A copy of the current policy or a declaration page from the company may also be used as long as it contains the necessary information. Proof of prior coverage on another vehicle may be used with a bill of sale on any vehicle purchased in the last 30 days when that vehicle was purchased to replace the prior vehicle. If you have a deposit on file with the insurance commission or a bond executed, the required proof will be documentation from the insurance commission stating you have this coverage. 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. Failure to produce proof of insurance any time they are asked for it can result in driver’s license suspension, a class C misdemeanor charge as well as fines up to $100.00.

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.

In July of 2009, Tennessee passed a texting law which forbids any individual to text from a hand held communications device while operating a motorized vehicle on the road. This offense is considered a class C misdemeanor and comes with a $50.00 fine plus a $10 court charge. There is also a separate law forbidding anyone with a learner or intermediate license from operating a hand held or hands free cell phone or other communication device while operating a motorized vehicle. The fine is $100.00 and could delay the promotion to the next licensing level.

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. Even being involved in an accident that was not their fault can be a mark against their record just as it is for an adult. Insurance companies view this as an indication that the driver may not have been paying close attention to the circumstances around them and therefore could have possibly avoided the accident.

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 care in the state of Tennessee. These cars include:

1. 1990 Toyota Camry
2. 1994 Chevrolet Full Size C/K Pickup
3. 1989 Chevrolet Caprice
4. 1986 Oldsmobile Cutlass
5. 1990 Buick LeSabre
6. 2000 Chevrolet Silverado
7. 1993 Jeep Cherokee/Grand Cherokee
8. 1997 Ford F150
9. 1989 Oldsmobile Delta 88
10. 1991 Honda Accord

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