What Type of Car Insurance Should You Choose Once You Have Kids?

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Once you have kids, your car insurance needs could change.

You may need additional insurance for further protection when you have young children.

And it could be best to add your kids to your existing car insurance policy once they grow up and gain driving licenses.

So, let us explore what type of car insurance you should choose once you have a family.

Should you add your children to your existing car insurance policy?

When your kids come of age and obtain driving licenses, your state and/or your car insurance company could, but not always, require you to add your children to your auto insurance policy.

Even if it is not required, it often makes sense to add your kids to your own car insurance.

Though, if they have learners’ permits, they may not need to be listed on the policy.

The majority of states extend policy coverage to young drivers with learners’ permits, but it depends on the age of the driver and the location.

So, always check with your insurance provider to discuss your available options.

Also, if you are required to add your kids to your existing car insurance policy but your children will not be using a vehicle that you own, you can usually list your kids as excluded drivers. That means the children are not allowed to use that vehicle.

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But by designating your child as an excluded driver, you can avoid the expensive premiums that typically come with insuring young drivers.

Should your children have their own car insurance policies?

New and young drivers will typically pay higher amounts for car insurance due to their inexperience. That is because insurers view young drivers as a higher risk.

So, it usually makes financial sense to add your kids to your own insurance policy if they still reside with you.

However, if your child has claims on your insurance record, it could affect the cost of your policy, so it could make more sense for them to take out their own auto insurance policies if your insurer allows two or more car insurance policies for one household.

Finding the Right Car Insurance Policy

Whether you have children who have driving licenses or you simply want more coverage to be safer once you have a family, it is important that you shop around to find the right car insurance policy for your needs.

Thankfully, that is easy to do. Simply use an online comparison platform to quickly compare quotes from different insurers to find a policy that fits your needs.

Spend Time Looking at Different Car Insurance Policies to Find the Right Coverage

You might want to change the type of coverage you have once you become a parent to ensure you have more protection.

For instance, you might want to take out medical payments coverage to help pay for medical bills following an accident. That would ensure you do not end up going into debt after an accident. In turn, that means your family will not suffer due to suddenly finding you have financial difficulties.

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Medical payments coverage can help to pay for medical costs related to an auto accident, regardless of who is responsible.

Rental reimbursement insurance, which helps to pay for a rental car after your vehicle cannot be driven after a road accident, could also be very useful when you have children. You can then ensure you have transport to do things like drop off and pick up your young kids from the nursery or after-school events even if your car is unexpectedly out of action.

Other types of car insurance policies that you should consider include:

  • Collision insurance.
  • Comprehensive insurance.
  • Uninsured motorist insurance.
  • Underinsured motorist coverage.
  • Personal injury protection insurance.
  • Gap insurance.
  • Towing and labor insurance.