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Coverage Options
Understanding your coverage options helps you build a policy that protects what matters — without paying for what you don't need.
Liability Insurance
Required in nearly every state, liability covers injury and property damage your teen causes to others — typically the largest portion of a teen driver premium. State minimums start as low as $25,000 per accident, but most parents carry $100,000/$300,000 or higher to protect household assets from a serious at-fault claim.
Collision Coverage
Pays to repair your teen's vehicle after an at-fault crash, minus your deductible. If your teen drives an older car worth less than $3,000–4,000, the annual collision premium may exceed what you'd receive in a claim — making this optional coverage a poor value for many families.
Comprehensive Coverage
Covers theft, vandalism, weather damage, and animal strikes — not accident damage. Because comprehensive claims are not at-fault incidents, this coverage typically costs 40–60% less than collision and may be worth keeping even on an older vehicle your teen drives.
Full Coverage
The combination of liability, collision, and comprehensive — usually required by a lender if your teen's car is financed. On a paid-off older vehicle, you can legally drop collision and comprehensive and carry liability-only, which can reduce your premium by 30–50%.
Uninsured Motorist Coverage
Covers your teen's injuries if they're hit by a driver with no insurance — required in some states, optional in others. Given that 12–14% of drivers nationally are uninsured, many parents carry this at the same limit as their liability coverage.
