Study Supports New Rules for Group With Costly Auto Insurance: Younger Drivers

    RANCHO CUCAMONGA, CA, August 10, 2010 /24-7PressRelease/ -- A study released last week by the Insurance Institute for Highway Safety (IIHS) is fueling the push to pass federal legislation that would establish a standardized set of minimum licensing requirements for drivers nationwide. The study, which is discussed in the most recent edition of the IIHS's Status Report, indicates that the majority of parents of 15- to 18-year-olds support licensing requirements that are as tough or tougher than those in place anywhere in the United States. The legislation, which is known as the STANDUP Act and was introduced in the Senate earlier this year, would establish national standards aimed at curbing the accident rate of the group of drivers considered to be of very high risk by the majority of auto insurance companies: young drivers.

Any consumer that has tried to find cheap insurance for young drivers knows that this can prove to be quite a feat. That is because insurance companies recognize that members of this demographic -- especially teenagers -- have less experience on the road and a higher likelihood of being involved in auto accidents, and the insurers respond to that heightened risk with larger premiums. Teenage drivers, mile-for-mile, become involved in three times as many fatal accidents as all other drivers, according to the National Highway Traffic Safety Administration (NHTSA).

Source: https://www.nhtsa.gov/road-safety/teen-driving

Parents involved in the Insurance Institute's study reported a preference for older licensing and permit ages -- with two-thirds of respondents saying the learner's permit process should not begin until 16 -- as well as stricter requirements for nighttime driving for new drivers. The study's author commented that she was surprised to see the level of toughness preferred by parents involved in the study.

Restricting nighttime driving and raising the minimum age at which states grant unrestricted licenses are both among the provisions of the STANDUP Act, which was written in response to the reported positive effects of graduated licensing programs. Thirteen states already have such programs, according to the NHTSA. If passed, the STANDUP Act would allow three years for states to conform to the national standards; after those three years, sanctions would be imposed on states not meeting the mandated minimum standards.

It remains to be seen how much of an impact nationwide standards would have on the risk rate and, consequently, insurance premiums for this group of drivers. Consumers can visit http://www.onlineautoinsurance.com/teenagers/cheapest-car-insurance-young-drivers.htm to learn more about shopping for coverage and to find the best rates available through a fast and free online quote comparison.

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