Introduction to Auto Insurance for Kids and Teens
This video explains the concept of auto insurance in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about car insurance, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Elementary School
- Middle School
- High School
The topics covered are:
- What is auto insurance
- Types of car insurance
- Who should have it and how much
- How to buy auto insurance
- How much does car insurance cost
- Ways to save on auto insurance premiums
- Rental car insurance
What is car insurance or auto insurance?
Car insurance or auto insurance is insurance meant to financially protect you against unforeseen events related to your car, like accidents, theft, fire, etc.
It is also called Motor Insurance or Vehicle Insurance.
Are there different types of car insurance?
There are 3 main types:
Comprehensive insurance covers damage to your car that is caused by events that are out of your control like theft, vandalism, fire, animal accidents, weather, etc.
It doesn’t, however, protect against accidents with other cars – that is what Collision insurance is for.
Collision insurance protects you from the cost of repairing your car after an accident with another car, or accidents with things like trees and fences.
To put it in perspective, comprehensive insurance would cover you if a tree fell on your car, but collision insurance would protect you if your car hit a tree.
Finally, liability insurance will help pay for any damage you did to another person’s car or property. It can help pay the other person’s repair costs if you’re the one at fault during an accident.
Who should have auto insurance? And what should be the insurance amount?
Anyone with a car should have auto insurance.
In 49 out of the 50 U.S. states, you are legally required to have a certain minimum level of car insurance. Anything more than that is your decision to make.
The more insurance you have, the safer you are – but the more insurance you have, the more expensive it would be.
How can I buy auto insurance?
There are 2 main ways to buy auto insurance:
1. You buy it directly from the insurance company offering it or its agents, and
2. You buy it from a broker website that gives you quotes from various insurance companies for the same coverage, so you can compare and buy.
How much is car insurance premium / cost?
What is the cost of car insurance?
Apart from the type and level of insurance you choose, your age, gender, driving history, location and the car model affect your car insurance premium.
However, to get a rough estimate, the average cost of car insurance in the U.S. is between 60 and 160 dollars per month.
Is there a way to reduce the cost of my auto insurance?
Having fewer accidents on your driving record, taking defensive driving courses, getting homeowners insurance or renters insurance from the same company as your car insurance, being a long time customer of the same company, and having a good credit score and credit report all help to lower the cost of your car insurance.
Insurance for rental cars
Do I need car insurance even if I rent a car?
Great question Sooper Cooper, but that’s a topic for another time…
Video Featured in the Below Financial Literacy Course for Kids & Teens
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: What is Auto Insurance or Car Insurance?
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about auto insurance or car insurance: What is Car Insurance / Auto Insurance / Motor Insurance, Are there different types of car insurance (Comprehensive, Collision, Liability), Who should have auto insurance, What should be the car insurance amount, How can you buy auto insurance / vehicle insurance, What is the cost of car insurance, Is there a way to reduce the cost of your car insurance, Do you need car insurance even if you rent a car, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/car-insurance-auto-insurance-for-kids/