More Accidents Happen When Teens Are Out of School

The odds of a teenage driver having an accident are high. According to Students Against Destructive Decisions (SADD) research, teens spend 44 percent more hours driving each week in the summer than during the school year. Furthermore, 16-year-olds have higher crash rates than drivers of any other age. Motor vehicle crashes are the leading cause of death among 15- to 20-year olds. According to the U.S. Department of Transportation almost 3,500 drivers in this age group died in motor vehicle crashes in 2006, and an additional 272,000 were injured. In the same year, drivers aged 15 to 20 accounted for 12.9 percent of all drivers involved in fatal crashes and 16 percent of all drivers involved in police-reported crashes.

"Teens think they are indestructible and often engage in risk-taking behavior," said Loretta Worters, Vice President of the Insurance Information Institute (III). "They are distracted by things they shouldn't do in a car like eating, talking on their cell phones, text messaging, talking to friends in the car – and they often don't wear their seatbelts."

It’s important for families with teen drivers to educate them about driving safely and to make sure that they, along with their teen drivers, are properly insured.

Protection for your teen

The III recommends taking the following steps to ensure the safety of your teen:

Pick a safe car. The type of car a young person drives can dramatically affect the price of insurance. You and your teenager should choose a car that is easy to drive and would offer protection in the event of a crash. You should avoid small cars and those with high performance images that might encourage speed and recklessness. Trucks and SUVs should also be avoided, since they are more prone to rollovers.

Have your teen take a driver's education course. A teen who has learned to drive though a driver's education course is viewed more favorably by insurers than a teen who has been taught by his or her parents. Indeed in some states, teens must take a driver's education course if they want to get a license at age 16; otherwise, they have to wait until they are 18.

Enroll your teen in safe driver programs. Some insurers offer "safe driver" programs. Teen participants in these programs sign contracts stating that they will not, for instance, drink and drive. Check whether your insurance company has such a program. If your teenager completes the program, you may be eligible for a discount.

Talk to your teen about the dangers of combining driving with alcohol, drugs, lack of sleep and distractions. Teach your children about the dangers of drinking and driving and other distractions. Accidents occur each year because a teen driver was drinking, using a cell phone, text messaging, playing the radio, or talking to friends in the backseat. Also, teens should be careful not to create distractions and to exhibit safe behavior when they are passengers in their friends' cars.

Be a good role model. New drivers learn by example, so if you drive recklessly, your teenage driver may imitate you. Always wear your seatbelt and never drink and drive.

Graduated driver’s license programs. New drivers are restricted from certain activities, such as driving with passengers, until they have had their licenses for a set period, such as six months. A number of states have reduced teen accidents by restricting the amount of time new drivers may be on the road without supervision. If you live in one of these states, ask if any discounts are available. If your state does not have such a program, you can still institute this same policy with your own children.

Protection for you

The III also offers the following suggestion to help you protect yourself financially while minimizing the cost of adding a teen to your insurance:

Insure your son or daughter on your own policy. It is generally cheaper to add your teenagers to your insurance policy than for them to purchase their own. If your teen owns a car, insure it with your company so that you can get a multi-policy discount.

Increase your liability insurance. State minimums for liability insurance will probably not be enough to fully protect you from lawsuits should your teen get into an accident. Many vehicles today are worth more than $15,000, and medical bills for injuries could easily exceed $20,000 for one person. If your teen is found negligent in an accident and the damages exceed your insurance limits, you will be financially responsible and can be sued in court for those amounts not covered by your insurance.

Raise your deductible. Going from a $250 to $500 or $1,000 deductible can save you 10 percent to 20 percent on your premium. You can use that savings to increase your liability insurance.

Let your insurer know if your teenager is going away to school. You may be eligible for lower premiums once your teen heads to college, providing he or she leaves the car behind. Many insurers will reduce rates for students attending a school at least 100 miles away from home and who do not have a car on campus.

Encourage your teen to get good grades and to take a driver training course. Most companies will give discounts for getting at least a "B" average in school and for taking a recognized driver training course.

For more information about insurance, go to the III Web site.