The vehicles and the people in them
You’ll learn more about this kind of insurance when you get your driver’s license. Most states require that drivers buy auto insurance.
What auto insurance helps you pay for
Driving is a risky business, and auto insurance can help you pay for –
About auto insurance payments
Cars are another one of those expensive items in life. The cost of auto insurance payments, called premiums, depends on how expensive your car is, where you live, your driving record – and with teens, your grade point average. High grades mean lower premiums. Auto insurance payments for teens are high because as inexperienced drivers, teens get into many more accidents than most adults.
When you get your driver’s license, you can be added to your parents’ auto insurance. Your parents may even ask you to help pay for your part of the insurance as well as the gas you use when you drive. When you are no longer a student, you will have to buy your own auto insurance.
Just as with other kinds of insurance, you can buy lots of insurance (that will pay for lots of damage or medical bills) or less insurance. If you buy less insurance and you get into an accident, you will have to use more of your own money to pay for damage or medical bills.
Driving can be dangerous, and the damage can be serious and costly. That’s why many people buy as much insurance as they can afford.