Teen Driving

Cut the cost of insuring your teen driver

·         Keep those grades up The operator is at least 16 years of age, and is a full-time high school, college or university student (12 hours). The student must be in the upper 20% of his/her class or maintain "B" average.

·         Complete Drivers Ed Applies to each youthful operator under 21 years of age where "Satisfactory Evidence" is presented that such operator has successfully completed a driver education course.

·         Insist on more supervised driving Studies show that increased number of hours of supervised training improve their recognition and response to driving situations.
Waller, P.F.; Olk, M.L.; and Shope, J.T. 2000. Parental views of and experience with Michigan's graduated licensing program. Journal of Safety Research 31:9-15.

·         Restrict nighttime driving Nighttime restrictions significantly reduce fatal crash rates and insurance losses. "Driving restrictions beginning at 9 pm cut fatal crashes an estimated 18 percent versus no restrictions. The reduction was 12 percent where 15-17 year-olds' driving was limited after midnight."¹

·         Limit passengers Passenger restrictions significantly reduce fatal crash rates and insurance losses. "For example, the fatal crash rate of 15-17 year-olds was 21 percent lower when the beginners were prohibited from having any teenage passengers in their cars versus allowing 2 or more. Allowing only 1 passenger reduced the rate by 7 percent."¹

·         Limit other distractions "Dialing a cell phone made the risk of crash or near-crash event 2.8 times as high as non-distracted driving"²

Tips for Teen Drivers

Safe driving is everyone's responsibility. Consider that over half of all motor vehicle accidents could be avoided if drivers make intelligent driving decisions. As new drivers, you are most at risk because you lack the experience (and sometimes the maturity) to make intelligent decisions at critical times. Strive to form good driving habits early, and they'll last a (long) lifetime!

We want to help you think about things that you can do to make your driving as safe as possible. Consider the following:

Consider these sobering statistics on teen driving:

·         Automobile accidents are the number one killer of our nation's youth.

·         Drivers under the age of 20 were involved in 13% of all accidents, yet they account for only 5% of all drivers.

·         5,000 teenagers die each year from auto accidents.

·         Alcohol is responsible for almost half of all teen motor vehicle deaths.

·         25% of all teen accidents involve speeding.

·         Half of all teenage traffic fatalities occur between 6:00 p.m. Friday and 3:00 a.m. Sunday.

·         In one year, drivers 19 and under were involved in close to 3 million motor vehicle accidents.

·         The price of a bad decision can include injury to yourself or others, loss of life, loss of life style or loss of personal freedom.

Ways to Prevent Accidents

While no one has full control over the circumstances surrounding a motor vehicle accident, there are things that can be done to reduce your chances of being the cause or being involved in one. Here are some smart decisions you can make while you're behind the wheel:

·         Drive defensively. If you assume that other drivers are not as skilled and thoughtful as you are, you will instinctively become more careful and cautious when on the road.

·         Try not to speed. When you speed, you have less time to react, less time to make the right decision.

·         Never drink and drive. Alcohol can seriously impair your decision-making skills and reaction time.

·         Take the keys away from friends who have been drinking.

·         Adults can set an example by practicing safe driving habits.

Ways to keep insurance premiums for teens as low as possible

A number of factors are taken into consideration when insurance companies set rates for automobile policies. Among those factors are the type of vehicle and the age, gender and driving record of the insured. Companies pay close attention to the number of accidents a driver has had and the traffic tickets (from speeding, running a stop sign, etc.) received. In their view, past performance serves as a meter for future behavior -- therefore, these drivers pose a higher risk.

Source: Insurance Information Institute; www.iii.org

Additional Resources

Governors Highway Safety Association
State-by-State overview of state highway safety laws (includes graduated drivers license laws and cell phone usage laws)

Insurance Institute for Highway Safety Vehicle Safety Ratings
Overview on how well a vehicle protects its occupants in a crash

Insurance Institute for Highway Safety (Research & Statistics)
Provides research on over 30 topics related to vehicle safety

Insurance Information Institute
Teen driving law synopsis and driving safety research

Money Saving Discounts

Insurance companies often offer a number of special credits to customers who've done something to reduce their risk of accidents. In some cases, these credits are a way to reward valuable customers for their loyalty and continued business.

These credits are described in general terms so check with an independent agent or Calhoun Insurance Agency representative to find out the specific details of credits your auto insurer offers. Your agent or Calhoun Insurance Agency representative will also be able to tell you which credits are available in your state, too, because these credits aren't available everywhere.

·         Anti-lock Brake Credit: Anti-lock brakes are an automatic safety feature that reduces your risk and that means you could qualify for a credit on your policy.

·         Anti-theft Credit: These security features could qualify you for credit because you've reduced your risk by installing: - alarms and active disabling devices (systems that you need to turn on) - a passive disabling device (automatically kicks in when you remove the key from the ignition) - keyless devices (like a remote door lock on your key chain) - tubular locks (like a bar that locks on your steering wheel)

·         Car Pool Credit: Do you commute to work and home in a car pool with two or more people? You'll save more than the cost of gas and car maintenance. You could qualify for a credit on your auto policy, too! That's because you'll use your car less often, especially during the busy, stressful morning and evening hours when your chance of an accident is greater.

·         Defensive Driver Credit: Drivers at least 55 years old who have completed a state-approved defensive driver or accident prevention course could qualify for savings. This credit may be good for only a certain number of years from the completion date of the course.

·         Driver Training Credit: A driver under the age of 21 who has taken a driver training course could qualify for savings. That's because the better the driver, the lower the risk.

·         Forgiveness Credit: This credit is usually available to drivers who've loyally maintained their auto policy with the same insurance carrier for many years. The first minor traffic accident (like a fender bender) that is estimated below a certain dollar amount may not be marked against them. It won't raise the cost of their insurance either.

·         Good Student Credit: If a driver in your household is younger than 25 years old and is a full-time student with a B average, they could qualify for a credit. This may be because a conscientious student is more than likely a conscientious driver!

·         Loss Free Credit: Some insurance companies will give you a credit if you haven't made any claims during the first few years that you've had your policy. Being a good customer and a low risk applies here!

·         Low Mileage Credit: The amount of miles you travel in a year could mean you'll get a credit on your policy, depending on how low that mileage figure is. That's because the lower the miles on the road, the lower the risk of an accident.

·         Mature Driver Discount: Some companies offer credits for drivers over the age of 55.

·         Multi-car Credit: Insuring more than one car with your auto insurance company may make you eligible for savings.

·         Multi-Policy Credit: You could save money if you have more than one type of policy with the same insurance company (for example, an auto policy and a homeowners policy). The more good business you give the company, the more valuable you are as a customer.

·         Passive Restraint Credit: Most insurance companies will give you credit if your car has air bags, automatic seat belts, or other safety features that you don't have to turn on or buckle up manually. These features automatically reduce your risk of injury.

·         Renewal Credit: Once you've had your auto policy for a certain number of years, you'll begin to get a credit each year you renew. (It's the good customer thing again.)

·         Student Away Credit: You could get credit if a driver in your household is a student living away at a school. If your student is more than 100 miles from home and doesn't have a car, that driver's risk is lowered because his or her time behind the wheel is reduced.

Safer cars benefit

A car that is practical, safe to drive, and inexpensive to repair (relatively speaking!) will cost less to insure. High-performance cars (that hot sports car you've always longed for!), expensive cars that are costly to repair, and cars that are likely to be stolen will, of course, cost more to insure. Check the crash-test reports, repair records, and manufacturer recalls of any car you are considering. A consumer protection magazine can be very useful. Or, surf the many car sites on the net.

Eliminate unnecessary coverages

If you drive an older car with little cash value, consider eliminating "collision" and "comprehensive" coverage from your policy. If the cost to repair body damage to an older car is more than the value of the car itself, the insurance company will appraise the car as "totaled" and give you only the amount of the car's value. Be sure you're not over-insured!

Fraud

Did you know that fraud costs you about ten cents for every dollar you spend on insurance? Think about this: if you own a home and two cars and pay $1,800 for insurance each year, you'll have spent $900 on fraud in just five years. So, ask your state legislators to make the fight against insurance fraud one of their priorities. Report insurance fraud to your insurance agent, Calhoun Insurance Agency representative or local police when you see or suspect it. Speak out against insurance fraud to your friends, family, and business associates. After all, it's not just the big insurance companies that pay. All those costs eventually filter down to you.