Car insurance for single parents
When shopping for car insurance as a single parent, you should consider both coverage and price.
Car insurance companies frequently use demographics such as your age, gender, marital status, insurance history, and driving record, as well as local accident statistics, the make and model of your vehicle, the coverages you select, and the discounts you qualify for, to determine your premium.
Increasing certain coverage limits can help protect your finances in the event of an accident, but higher limits are more expensive. Similarly, if you have full coverage, increasing your comprehensive or collision deductibles can lower your premium, but you will pay more if you file a claim for vehicle damage.
Single parents and teen drivers
The day your teen or young driver gets behind the wheel of a vehicle can be terrifying as a parent, but the cost of adding your teen driver to your insurance policy may be even more terrifying. Because teenagers are inexperienced drivers, insurance companies regard them as one of the most dangerous groups on the road. According to the Centers for Disease Control and Prevention, drivers between the ages of 16 and 19 have the highest risk of being involved in a car accident of any age group (CDC). Although premiums will vary depending on your teen's age, you can expect to pay more for car insurance until he or she is around the age of 25.
There are ways for teen drivers to save money on car insurance. Some businesses provide good student discounts to teenagers with GPAs or letter-grade averages that are at or above a certain level. Many businesses also provide discounts to teenagers who have completed driver education classes. If your child is away at college and does not have a vehicle, you may be able to apply for a distant student discount on your policy.
Car insurance coverages for single parents
Remember that car insurance policies are packages of several different coverages when it comes to selecting coverages for your policy. Although some coverages are frequently required by your state and others are optional, the following coverages may be advantageous to a single parent:
- Liability coverage for bodily injury and property damage: If you cause an accident and do not have enough insurance to cover the other party's damages, you may be forced to pay for them out of pocket or face a lawsuit, both of which could put a significant strain on your family and finances. Instead of purchasing your state's minimum liability limits, you might want to consider purchasing higher liability limits.
- Medical payments and/or PIP coverage: If your state provides medical payments or personal injury protection (PIP) coverage, purchasing higher limits may be a good idea if you are concerned about paying medical bills after an accident. These policies may cover medical expenses for you and your passengers in the event of an accident, regardless of fault. PIP may also cover lost wages and other expenses such as childcare. Some states require medical payments or PIP coverage by law, and in others, you may be able to purchase either or both.
- Comprehensive and collision coverages: Adding comprehensive and collision coverages to your policy provides financial protection for vehicle damage. If you do not have the funds to repair or replace your vehicle out of pocket, you should consider purchasing full coverage.
- Rental car coverage: Rental car coverage is intended to cover the cost of a rental car while your vehicle is being repaired as a result of a covered loss. Single parents who do not have another vehicle at home should think about this option.
Remember that while adding these coverages will raise your premium, they may save you money and stress in the long run.
How to save on car insurance as a single parent
Saving money on car insurance may be even more important for single parents on a tight budget than it is for many other households. Just because you have car insurance does not mean you have to buy a policy that will cost you a fortune. Although there are no programs that provide car insurance assistance to single mothers and fathers, there are things you can do to keep your premium low.
Here are a few tips for saving money on car insurance as a single parent:
Shop around
Car insurance companies each have a unique rating algorithm to determine your premium. Because there are so many variables that influence your rate, you will almost certainly receive a different quote from each company you contact, even if your coverages are the same. Knowing what you want from a company and getting quotes from various providers may help you find the best car insurance company for your specific situation.
Ask about discounts
Insurance companies frequently provide a plethora of discounts to customers, which can help to reduce the cost of insurance. When purchasing a policy or getting a quote, make sure to check to see if you are eligible for any of your company's available discounts. Multi-policy discounts, good driving discounts, claims-free discounts, vehicle safety feature discounts, and customer loyalty discounts are all popular among single parents.
Maintain a clean driving record
Accidents happen, but filing claims can raise your premium, and the increase after an accident can be substantial. Avoiding tickets, accidents, and DUI convictions can help you save money on your insurance by avoiding surcharges. Signing up for an accident forgiveness program before you have an accident may help you keep your premiums low if the unexpected occurs — these programs typically forgive the first at-fault accident on your policy or one at-fault loss in a certain number of years, though each carrier's program will differ.
Frequently asked questions
What is the best car insurance company for single parents?
There is no such thing as the best car insurance company for single parents. Because every company is unique and every driver has unique needs, the best insurance company is the one that best meets your coverage requirements and budget.
Is car insurance more expensive if you are a single parent?
Sometimes. Car insurance premiums are determined by a variety of factors, including marital status, depending on the state you live in and the company you choose. However, there are additional rating factors besides marital status. Your premium will be affected by the type of vehicle you insure, your driving record, the coverages you select, and the discounts you qualify for.
How much will my car insurance increase when I add a teen driver?
The premium increase for adding a teenage driver to your policy will depend on your teen's gender and age, as well as the coverages you already have, whether or not you add a car for your teen to drive, and whether or not you and your teen qualify for discounts. However, because of their inexperience on the road, adding a teen will result in a significant increase in your premium. However, there are ways to save money, and adding a teen driver may be a good time to compare policies.