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Posted June 4, 2012
Sandra Dawson

Two Reasons a National Graduated Driving License Program Will Cut Car Insurance Costs

Most teenage drivers face high car insurance rates in Florida, Texas and other states. The reason is that in most cases, they lack the experience behind the wheel to have practiced safe driving techniques. Car insurance companies take this lack of expertise into account, and many younger drivers find that their rates are astronomical, even if they remain on their parents' policy.

The easiest way to reduce costs is to give teens more structured options to gain experience, and that generally means graduated drivers license programs. Since 1996, these options have been offering an easier transition into driving by restricting teens' independence while driving. And it's paying dividends.

Graduated Drivers License Programs' Safety Value and Car Insurance

Car insurance providers like GDL programs because teens are generally restricted from doing much on their own. They have to drive under supervision for dozens of hours, must have a provisional or conditional license with nighttime driving restrictions and can generally only carry one friend or non-family member.

The effects of state programs show that the more waiting and supervision cut fatal crashes by up to one-fifth, according to Edmunds. That reduction in risk translates to lower car insurance policy quotes, as well.

Standardizing GDL Programs Will Lead to More Savings

The problem with the various state teen driving programs is that there's little uniformity. Many states have different requirements on the use of cell phones, the number of passengers in the car and even the amount of time that teen drivers must have behind the wheel with adult accompaniment. In several states, car insurance may be higher because there's no intermediate, or “Cinderella” license.

This can affect youth car insurance rates in states with fewer regulations, or ones that don't match nationally accepted standards according to studies. And the standardization of the programs would ensure that drivers in various states would have the same level of driver education, leading to fewer concerns on the road.

What You Can Do to Help the Program Come to Fruition

There is a bill in Congress right now, with the unfortunate acronym of STAND UP that would provide a national curriculum for driver education of youth drivers. The bill was launched by two New York Democrats, a state with one of the most stringent licensing systems in the country, notes UPI.

Standard rules would include no nighttime driving during the intermediate stage, just one non-family passenger until the full license, and no use of cell phones. A full license would be available at the age of 18.

These aspects all reduce fatal crashes, and would reduce car insurance rates as well. Consider writing to your local Congress member to ask for this program to pass. It helps safety, and may also reduce costs for your teen children or nieces and nephews.