THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, December 9, 1994 TAG: 9412080047
SECTION: DAILY BREAK PAGE: E11 EDITION: FINAL
SOURCE: BY LAURA PYLE, HIGH SCHOOL CORRESPONDENT
LENGTH: Medium: 78 lines
TEEN DRIVERS are involved in about 3 million auto accidents per year. Insurance companies know that. They also know that males often have worse driving records than females and that teens tend to take more risks, get distracted more easily and have less experience than other drivers.
So insurance rates for teen drivers can be pretty high, even for those who just got their license, much less had an accident. While it's not a good idea to cut back on insurance, there are some ways to beat those high rates.
According to the Virginia Department of Motor Vehicles, a driver's policy must provide a minimum liability, or coverage, of $25,000 for the injury or death of one person, $50,000 for two or more people, and $20,000 for property damage.
That seems fairly simple. But once you start talking to an agent, the picture gets more complex.
Some agents might try to sell you more coverage than you need and going in to talk to one alone can be overwhelming. If you go to an agent, it's a good idea to take a more experienced adult along and to have a basic idea of what you want.
Even if your family has been with the same company since the car was invented, Jackie P. Harris, a driver education teacher at Southampton High School in Courtland, says it often pays to shop around. Harris suggests that you call different agencies and ask about their rates, whether they give discounts for things like good grades, and how soon they respond to claims. Keep notes and tell companies the figures other agencies gave you. Once you narrow your list, call the State Insurance Commission in Richmond at 371-9741 to find out how many complaints have been filed against the company. Ask other clients about their experiences.
The car you drive can have a profound effect on the amount you pay and that's another statistic insurance companies consider. The type, model and even color of the car you drive sends the insurance cost up or down. High-performance and sports cars get higher-priced coverage in part because those cars cater to high-risk groups, like young males.
Insurance companies also track a model's claims record, the amount the company pays for repairs, accidents and theft losses. Cars with safety options - air bags and anti-lock brakes - lower the price of insurance, since those features help prevent accidents and injuries.
Maintaining a good driving record and sharing the car you drive can save money. Most companies charge less if a teen is listed on the policy as an occasional driver rather then the main driver, and a clean record keeps premiums down no matter what your age.
For example, a 16-year-old male driving a 1989 Honda Civic under State Farm Insurance coverage could be placed on his parents' policy and pay $418 every six months if the parents are good drivers, according to the State Farm home office in Charlotte, N.C. A 45-year-old male driving the same car with the same coverage would pay $242.76 every six months.
If the 16-year-old gets a DUI, he would be placed in the assigned risk pool and his rates would more than double to $924.50 every six months. The 45-year-old would also face a steep increase to $519 every six months.
Many companies offer discounts to good students, drivers who completed driver education with a ``B'' or higher, and non-smokers, among others.
For example, Jennifer Carr, a sophomore at Southampton High who turns 16 in January, will be added to her parents' policy with Virginia Farm Bureau. The Carrs have two cars covered on their policy and have been with Farm Bureau for a long time. They will save about $100 for having multiple vehicles insured, their time with the company and Jennifer's grades.
But there are plenty of ways to increase your insurance bill needlessly. Excess options can be costly, and sometimes they are cheaper elsewhere. You can get free towing if you're an American Automobile Association member,and CB radios and stereos are likely to be covered under a homeowners policy.
Finally, take a higher deductible, the amount you will pay out-of-pocket for a claim. A higher deductible can lower your rates dramatically.
Never settle on a policy until you're sure it's the best you can get, and when you're out on the road, keep in mind the importance of a clean record. ILLUSTRATION: Photo
Laura Pyle is a junior at Southampton.
by CNB