Jeff Johnson: Would teen driving restrictions change auto insurance premium rates?

Driving restrcitions and teen auto insurance.

Response :  If a new Federal Act passes, all teens will have to go through an even more steps to get their driver’s license.

 Teens have the highest insurance rates of any other driving group and there is good reason. Teens also have the highest accident rates of any other group. Now, this is not to say that all teen drivers are bad. They just do not have the experience and maturity level that is learned with experience and this leads to more accidents.

To try and keep our teen drivers safe (and the rest of us) a new law is making its way through congress that would impose teen driving restrictions for drivers under the age of 18.

 Senator Kirsten Gillibrand from New York has submitted a proposal to the Senate that would set getting a driver’s license into a multi-tier process rather than the two steps it is today.

The act would have the first level stay the same with the new teen driver being issued a permit. The only difference is that it would be illegal for permit drivers to text or talk on a cell phone while driving.

The second level is a restricted license at age 16. The driver would be restricted from driving at night and also from texting and talking on a cell phone while driving. An unrestricted license would not be issued until age 18, different from the unrestricted license that is now issued at age 16.

Driver’s licensing is similar to insurance; it can vary from state to state. Some states have very loose rules such as a driver can be issued a  permit  at age 14 and a license at age 15. Other states already adopt a graduated licensing approach like the one that is trying to make its way through the Senate.

The difference is that if the Safe Teen and Novice Driver Uniform Protection Act is passed and put into effect that this would be a federal law. Meaning that each state will have to adopt this law instead of the licensing laws being different from one state to another.

Because drivers that are age 16-17 will be restricted from driving at night their driving exposure is cut to half of what it was previously. Also, with restrictions on cell phone usage while driving, one would reason that there should be a decrease in insurance premium for their teen driver.

Of course, this all will depend on the insurance company. If your teen has restrictions on their license right now ask you agent how it makes a difference on your insurance premium. Also if your insurance company offers any discounts for a restricted teen license.

Also as more and more statistics are being released to confirm that restricting teen driving time does decrease teen accidents we may see insurance rates start to be more reasonable for this group.

Please also understand what is Named drivers restriction and how this would affect the auto insurance rates.

Charles Shien : I’m a new resident in the U.S, can I transfer my driving record from England?

Review car insurance coverage to get low auto insurance rates

Response : There are always issues which you need to settle when you move from one country to another. One of the concern is getting your driving license and whether the driving license from another country is going to be transferred or you need to get a new one. Basically in US a person from another country starts with a new record.

For many people who have moved to the United States from another country, one of the main concerns is whether or not their foreign driving record will transfer over. As new citizens quickly find out, your foreign driving record doesn’t transfer over at all in most situations. Those who have moved from another country basically have to start their driving record in the US with a clean slate. Unfortunately, when it comes to purchasing a car insurance policy, that likely means that you won’t be eligible for the lowest rates, at least initially.

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Some insurance companies may try to attain information about your foreign driving record to help determine your rates, most will wait until you have a verifiable record within the US. Since your driving record is one of the primary factors involved with determining insurance premiums, you’ll likely be stuck with high auto insurance rates. You might be rated as a high risk driver. Some insurers treat foreign drivers like teen drivers, since they’re essentially still learning the rules of the road in a new country. Keep in mind, you’ll likely need to obtain a valid state driver’s license before or soon after you purchase an auto insurance policy as well.

After a couple years of driving, you’ll have the opportunity to establish yourself as a safe driver and possibly become eligible for low auto insurance rate. It would be best to compare auto insurance quotes online and find out the insurer who is providing the low auto insurance rates. Pick up the phone talk to the customer service for the insurer and once again clarify your situation, before you actually buy auto insurance.

Talk to your specific insurance provider for more information about transferring your driving record over from another country, as some companies may be able to work out a deal for your premiums. Of course, there are other factors that can have an effect on your insurance rates, regardless of whether or not you have a driving record.
You can find out lots of information related to US uto insurance on this blog. Do not hesitiate to ask questions if you have any doubts.
All the best.
Kamlesh.