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Ohio's teen driving law means lower insurance rates
Wednesday, April 25, 2007
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COLUMBUS, Ohio — Ohio's new law restricting young drivers is saving some people money on car insurance bills because the companies believe the regulations will lower accident rates.
Some insurance companies lowered teen driver rates after the law that restricts the hours teens may drive and their number of passengers went into effect April 6.
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Teen drivers with Grange Insurance will get up to a 5 percent discount when the company cuts its rates in June. Allstate Insurance Co. lowered fees last summer in anticipation of the law, and teen drivers can further cut their rates by taking an online safety program, spokeswoman Lisa Finney said.
In the last 18 months, State Auto Insurance dropped rates for teen drivers by 5 to 10 percent, said Joel Brown, vice president of personal insurance.
"Insurance companies are starting to see lower losses from teen drivers, and are turning around and passing those savings on to customers," said Mary Bonelli, spokeswoman for the Ohio Insurance Institute.
Nationwide Mutual Insurance Co. and State Farm Insurance Cos. say they'll wait to see if the law lowers the accident rate for young drivers. A study by the Ohio Department of Public Safety suggested states with similar laws saw a 23 percent drop in teenage accidents.
Ohio's law bars drivers under the age of 17 from carrying more than one non-relative as a passenger. It also blocks drivers under 17 from driving from midnight to 6 a.m., and 17-year-old drivers can't be on the road between 1 a.m. and 5 a.m. Exceptions can be made if the teen is driving to and from work, and the hours or number of passengers don't matter if a parent or guardian is in the car.
When the law took effect, some teens grumbled that it was unfair and that parents should have the right to determine who and when their kids drove.
Proponents argued the restrictions meant less distractions for teen drivers, and as of February, 43 other states had passed laws similar to Ohio's covering teen drivers.
The relaxed fees could help parents, whose insurance bill can double when they add a teenage driver to their policies, Bonelli said, although the actual cost is affected by many factors including the driver's age, driving record and the type of car covered in the policy.
Information from: The Columbus Dispatch, http://www.dispatch.com
Comments
By Andrew
May 2, 2007 11:35 AM | Link to this
I agree with this law. I was just talking to my teacher about teen driving cause it was on our warm-up. My personal opinion, I think that teens should drive without a license or permit, but with caution. If they get cought for an accident, speeding, or running a red light, they should get the punishment of license suspension of 5 years. I have been driving for 6 years and nevr wrecked a car or got cought. If someone wants to drive really badly, they should know how to be a good driver.
By JaNay
May 1, 2007 11:13 AM | Link to this
I dont care if the insurence rates went down. I think us minors should still be able to drive regular. That’s like our ONLY freedom and the goverment isnt doing nothing but taking it away from us.
By Ryan
April 25, 2007 11:10 PM | Link to this
I don’t understand how insurance rates could possibly drop just because there would be fewer passengers in minors’ cars. What many people don’t think about is that due to less passengers in those cars there will in turn be more cars on the road. More cars on the road leads to more traffic and more accidents. Therefore how can insurance companies justify a decrease in insurance for those drivers? If anything rates should go up.
By Cappy Badmitten-Van Houten
April 25, 2007 7:24 PM | Link to this
I think that riff-raff shouldn’t be allowed to drive either. They are the most annoying people, with thier bumper stickers, and hard rock music, their insurance should go up..
By duffman
April 25, 2007 6:15 PM | Link to this
Rates would be lower if woman and midgets were banned also
By Big Ed
April 25, 2007 4:52 PM | Link to this
You can bet that if rates are lowered, it’s only a fraction of the money that insurance companies are saving due to the new rules. Let’s face it, lower teen accident rates should cause lower rates for ALL drivers, not just teens.
By Howard
April 25, 2007 4:31 PM | Link to this
That’s to be laughed at, The State of Ohio makes you sign your life away when you register your vehicles, that you have insurance, I think the State needs to make you prove you have insurance to get your registration and license… Then we would not have to pay extra for people who don’t worry about car insurance. Imagine that a Government law that makes sense LOL
By Bob
April 25, 2007 3:23 PM | Link to this
The next law doesn’t seem restrictive at all to me. It just seems like good common sense. If it results in fewer accidents, and fewer deaths and injuries, from accidents involving teens, then I don’t see a down side to it.
By Dave
April 25, 2007 3:14 PM | Link to this
It surprises me any time an insurance company acknowledges lower claims and passes along the savings. How about a reduction in rates to those of us with no underage drivers, no tickets, no accidents, and still paying over $1000/year per vehicle. They say our rates are high because of others who cause accidents and don’t have insurance. Well, if the overall claim rate is down, how about sharing the wealth?