How Does Teenage Driver Affect Insurance?

Car accidents are the leading cause of death among young people in the United States. About 7,000 young people die and 300,000 are injured each year across the country. According to AAA, in 2019, Oregon is ranked 29th in the country because of the fatal accidents of young drivers.

Lesson from AAA Foundation for Traffic Safety concluded that for every vehicle driven, new drivers aged 16-17 are three times more likely to be involved in a fatal crash. Young people fall for many reasons, but the most common ones are overconfidence, speeding, impaired driving, distraction and inexperience. In addition, seat belt use among young people is significantly lower than any other age group on the road.

According to The latest AAA Foundation Traffic Safety Culture Index72% of young drivers aged 16-18 admitted to having engaged in one of the following behaviors in the past 30 days:

  • Driving 10 mph over the speed limit on a residential road (47%)
  • Driving 15 mph over the speed limit on a freeway (40%)
  • Texting (35%)
  • Red light speed (32%)
  • Aggressive driving (31%)
  • Driving (25%)
  • Driving without a seat belt (17%)

Licensed Driver Program (GDL).

All states in the US have adopted the Graduated Driver Licensing Program to teach new drivers good habits. According to Oregon Parent Guide to Teen DrivingTo be eligible for a permit the young person must:

  • Have a six month training permit, AND
  • Complete an approved road safety course AND at least 50 hours of supervised driving; OR
  • Complete 100 hours of supervised driving

Defines a supervised driver as someone who is at least 21 years old and has held a driver’s license for at least three years.

When a young driver completes the requirements for their driver’s license, they can apply for and test their driver’s license. However, young licensed drivers still have specific restrictions in the State of Oregon. They are:

  • Using mobile devices while driving is not allowed. This includes, texting or talking (even with a hands-free extension), using an mp3 player, or any portable device until they are 18 years old.
  • During the first six months of being a licensed driver, they may not be with people under the age of 20, unless they are a member of their family. No driving between midnight and 5am, except for a list of reasons defined by the DMV.
  • For the second 6 months with a licensed driver they cannot have 3 passengers under the age of 20, unless they are in their family. And, no midnight driving between midnight and 5am continues as in the first six months.

Oregon Fraud Laws and Auto Insurance

Insurance statistics show that young drivers are more likely to have accidents than the average older driver. Therefore, there will be more premiums to be paid when a young driver is added to the parent’s policy.

There is a temptation then to “forget” to add a new driver to the car policy or not to list a new driver on your renewal questions to save money even though the child is driving the parent’s car. The state of Oregon has some fraud laws in this area that will allow an insurance company to deny a claim if the driver is an unidentified homeowner. Additionally, the Attorney General has the ability to fine the policyholder in the thousands of dollars.

Car Insurance for Young Drivers

A decision has been made. You want to buy your son or daughter their first car. It will be in your name and properly added to your policy. But what to buy? You know it’s not just the type of car you need to consider. You should also think about how the car will affect your car insurance.

Insurance companies increase young workers in three areas:

  • Responsibility
  • Complete (Stealing)
  • Collision (Damage to a vehicle in an accident)

If you choose a car that is old and does not require collision (an expensive car) the price will be less than a new one that will need a full inspection.

Bancorp insurance agents are available to provide free quotes and consultations. Contact Us – Insurance Bancorp Call 800-452-6826

Disclaimer: This information is provided for informational purposes only and is not intended to be used as a substitute for contacting our sponsors.

The Figures Are Derived on 08/08/2022