Teen drivers pay some of the highest rates for Georgia car insurance coverage. They are riskier to insure than people who have several years of driving experience because they are more likely to take risks behind the wheel. This fact, combined with the fact that a young driver still has a lot to learn, means that drivers in this age group are much more likely to be involved in accidents and make claims against a policy, which translates into higher rates for coverage.

To keep rates for teen drivers down, a parent can add the newly-licensed member of the household to his or her existing car insurance policy. This is a much less expensive option than buying a new policy for a teen driver where he or she is the primary driver. Before adding the teen to the policy, a parent should take the time to get quotes from a number insurance companies for a policy which includes the teen as an occasional driver. That way, the parent can find the best pricing for a policy that will fit the family’s new insurance circumstances.

Before making a decision about a Georgia car insurance policy for a teen driver, a parent should ask the insurance company about available discounts. Some of them offer price breaks to students who can maintain a “B” average or higher, and this is worth exploring when tying to keep insurance costs for young drivers down.

Georgia is not a no-fault state for car insurance purposes. Instead, it uses a tort system. Under this type of insurance plan, people who have been injured in an accident have the right to sue to collect damages from the at-fault driver. When the person deemed responsible for the accident has coverage, his or her insurance company pays out on the claim.

It may tempting for consumers who want to keep their Georgia car insurance costs down to limit the level of coverage they carry to the minimum required under state law. Doing so means the driver is conforming to state law, but it doesn’t mean that the customer has the level of protection necessary to pay for the damages caused if the accident is a serious one.

Third party liability coverage is meant to pay for medical bills, rehabilitation expenses and lost wages incurred by the occupants of the other vehicle following an accident. If an accident is serious enough to require the injured person to be admitted to hospital for surgery and/or the victim is permanently disabled, a policy that pays out based on the minimum will probably not be enough to fully satisfy the claim.

Once the available Georgia car insurance coverage has been exhausted, the at-fault driver is responsible for paying the remaining balance owing personally. Rather than exposing him or herself to potential financial ruin, a better action is to shop around for the best pricing on a policy that provides adequate coverage.