Understanding The Intricacies Of Insurance

Talking Your Parents Into Letting You Buy A Car

Are you a young driver who hopes to talk your parents into granting your wish for a car of your very own? Are you prepared to present the argument that you are responsible enough to take care of every element of owning a car? Here you'll find a few talking points to help you tip the scales in your direction with your parents.

Auto Insurance

One thing that even many adults don't know as much about as they should is the auto insurance that will have to cover the vehicle. At the very least, you'll need to carry liability insurance, but know that liability insurance will not cover the cost of repairs if you cause an accident—it is there only to protect the other people and properties around you.

When you take out an auto loan to pay for the vehicle, you will be required to carry full coverage insurance. This means that you'll pay more, but if you were to hit the neighbor's mailbox, the damage to your car and the mailbox would be covered.

Sharing an auto insurance policy with your parents will save you money for the first few years of driving. After you've maintained a clean driving record for three years, your insurance rates will drop substantially. Now, if your parents aren't comfortable keeping you on their insurance, you can take out a policy of your own—this will cost more, but if you keep up with making payments on time every month, it will help you build your credit and make it easier to get loans in the future.

Know that if you increase the deductibles that are on the insurance policy, your monthly payments will be lower, but you will need to pay that deductible amount when you file a claim for damages. So, if you hit something and it causes $1,500 and your deductible is set at $500, the insurance company will cover $1000, but you'll be responsible for the other $500.

Driving School

Have you attended any type of driving school? Drivers with behind-the-wheel training receive a discount on their auto insurance, and they are better prepared for the many instances that can occur while driving. Even if you already have your license, you can attend a class. Do this and you'll be one step closer to showing your parents that you're ready for such a huge responsibility.

Now, take what you've just learned and sit down with your parents. Hopefully you'll get your way, but be prepared to show your maturity and flexibility even if they don't agree.