Car Insurance for Younger Drivers

The price of auto insurance varies from one group or classification of drivers to a different group. The basis for this is that, a few groups have worse driving records, higher accident rates, and more pricey accidents than others.

More often than not, the maximum premiums are paid by the male driver under the age of 25, with his rate depending on his marital position and whether he owns, or is the main driver, of the car being insured.

Under the most broadly used rating structure, the rate of automobile insurance for youthfuldrivers is scaled downward every so often. Rates for unmarried males who are the owners of their cars are reduced periodically from age 17-29.

In the majority of states, rates for unmarried males who are not the owners of their cars, for married males, and for females are reduced each year from age 17-21. For these groups, the “young driver” surcharges are eliminated at age 25.

Underage Drinking and Driving
Automobile insurance premiums can be tripled or nonrenewed for parents whose underage children obtain operating while intoxicated (OWI) citations. The OCI surveyed the twenty top writers of auto insurance in the state. Six of the nineteen companies surveyed said that parents’ insurance rates would be affected if a minor received a citation for underage drinking when the minor has NOT been driving. The policy could be canceled, be renewed with nonstandard rates, nonrenewed , or be surcharged.

The rate increases vary from 90% to 260%. Nineteen companies reported a rate rise or cancellation of the policy if a minor receives a citation for OWI. The rate increases range from 47% to 300%.

If your teenager is cited for underage drinking where the infringement concerned the operation or use of a motor vehicle, the insurer might nonrenew the parents' insurance policy or increase the premium which would continue at the higher level for a number of years or until the child leaves the household. If a child is cited for underage drinking involving a motor vehicle, the parents' insurance rate could be affected for a minimum of three years, or pending the minor is no longer a member of the household, or no longer on the policy.

OCI recommends that, before using an underage drinking violation to underwrite or rate a policy, the company investigates whether the infringement is driving related.

If a young driver in your household has received citations for driving related violations, including an OWI, those violations can also affect other policies held by the parents.

One of the companies reports a possible effect for umbrella policies, and for two other companies, a citation would affect insurance rates on other nonauto motor vehicles, such as boats, or snowmobiles. The Department of Motor Vehicles will release any records connected to drinking and driving, even for a minor, to insurance companies, when requested. Driver records that are not private can be accessed by anybody under the open records law. Records that are not private include OWI and UAO (Underage Alcohol Operation).

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