• 324,000 teen drivers were injured in non-fatal auto accidents in 2002. (Source: National Highway Traffic Safety Administration)
• Drivers between the ages of 16 and 17 are three times more likely to die in an auto accident than drivers ages 25–64. (Source: National Safely Council)
• The estimated annual cost of crashes involving young drivers is $32 billion. (Source: National Safety Council)

These statistics highlight why it’s so important to talk with your kids about safe driving habits—and to make sure they’re properly insured. Not only is having auto insurance important, in some states, it’s also the law. Keep these points in mind when investigating policies:

• Most states require auto insurance. You will need liability insurance for accidental bodily injury and property damage you might cause others. Liability insurance is typically stated in threes: for example, 25/50/10 would describe coverage of $25,000 per person, $50,000 bodily injury per accident and $10,000 property damage per accident. Some states that have instituted no-fault insurance laws also require personal injury protection (PIP) insurance. 
• If you have an auto loan, you may need additional coverage. Financing (loan) companies usually mandate that you carry comprehensive and collision coverage as a condition of your car loan.
• Evaluate if comprehensive and collision insurance is worth the expense. Collision insurance protects against damage to your vehicle resulting from collision with another vehicle. Comprehensive insurance protects against damage that results from events other than collision (like from theft, vandalism or fire). Look at the Kelley Blue Book value of your car compared with the cost of premiums and deductibles for these types of insurance.
• Stay on a family plan. Your child may be able to stay on your policy and be eligible for a multipolicy discount.

Never wait until an insurance policy expires. Shop around and find the best value for your situation before your current policy ends.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of savings and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction or strategy for his or her own particular situation. The examples mentioned are for informational purposes only and not intended to represent results you should expect in the future. Data contained here is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.