Teen Talk - Buying Your First Auto Insurance Policy
One of the first insurance policies you will most likely buy will be automobile insurance. It is a law
in New Jersey that you must have a valid automobile insurance policy for all registered vehicles. Failure to maintain
insurance will result in fines and penalties as well as the possibility of a major financial loss as you will be responsible
for damages that could occur in an accident. You should also consider the following:
BUY
AN OLDER CAR:
If you buy a new car, especially one that is financed or leased, you will need to cover physical damage protection
on that vehicle (fire, theft, vandalism and collision coverage). This coverage can be very expensive for young drivers.
If you decide to buy a newer car, always check with us before buying a car and we can give you an idea of the premium costs
for physical damage.
DON'T SKIMP ON LIABILITY LIMITS:
If you are considered at fault in an accident, you can be sued for the injuries or death that you may cause.
A judgment can be held against you for 20 years-don't ruin your future financial status. Make sure you purchase
at least a $300,000 liability limit
CONSIDER ADDITIONAL PERSONAL INJURY PROTECTION
(PIP)
For a small additional premium, additional PIP coverage will pay for lost wages if you are hurt in an auto
accident
MAKE SURE YOU TAKE ADVANTAGE OF DISCOUNTS:
Are you a good student with a B average, honor roll or deans list recognition? Apply for a good student
discount. If you have had behind the wheel and classroom driver training, you may qualify for an additional drivers
ed credit
PAY YOUR PREMIUMS ON TIME:
Some companies do not give you the best premium rates if your history shows lapses in coverage. Pay
your premiums on time (also if your coverage lapses, you are in violation of NJ insurance laws)
KEEP YOUR IDENTIFICATION CARD WITH YOU:
You can receive a ticket
if you fail to have a valid ID card in your car
BE A GOOD DRIVER:
Tickets and accidents WILL increase your premiums.
