Should young people really have to pay more for car insurance?

Carol Forsloff - This week the Insurance Institute has called for uniform minimum driving
standards for drivers nation wide.  Parents support tough requirements
for young people, and studies show that's wise.

A new study outlined in the most recent edition of the IIHS's Status Report, tells us most parents want their young adult or adolescent drivers, ages 15 to 18, to know how to drive well.

The insurance companies are pusing for legislation called the STANDUP Act that was introduced in
Congress early in 2010.  It would establish national standards aimed at
curbing the accident rate of high risk drivers, that are found to be the
young drivers.

Consumers have learned over time that young people have higher accident rates, therefore their premiums are higher.
Teenage drivers have been found to have more than three times the rate
of accidents as other drivers according to the National Highway Traffic Safety Administration.


This recent study shows parents believe the learner's permit process
should not begin until age 16 and that there should be stricter
requirements for nighttime driving for new drivers.

These are some of the elements 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.  But
if the Act is passed, the rest of the country will have to conform to
those same standards.

The Centers for Disease Control examined the potential of graduated driver licensing and indicates it
might be a good thing for young drivers.  "Research suggests that the
most strict and comprehensive graduated driver licensing (GDL) systems
are associated with reductions of 38% and 40% in fatal and non–fatal
injury crashes, respectively, of 16–year–old drivers."

No one knows exactly what the impact of new legislation will have on young
drivers, but if the risk of accident is lowered it is likely there might be changes. People can in the meantime get quotes for present rates.