Reader’s Question:

What are these insurance points and how do you acquire them?

Wallace

Columbus, GA

Insurance points are used to evaluate the eligibility for car insurance coverage and to determine insurance rates. These points are assigned by your individual insurance provider and each has their own type of point system. The system will differ but many insurance companies use the system based on the rules and guidelines set up by the Insurance Services Office (ISO).

Either using the ISO system or their own created system; insurance carriers assign a value (point) to various vehicle violations, such as an accident, DUI or traffic violation. The point value will increase depending on the seriousness of the violation. As you accumulate more “insurance points” as a motorist the likelihood that your insurance premium rates will increase.

If you would like to know the specifics of your insurance company’s rating system, since all carriers vary in the exact variables they use, you can contact your state’s insurance regulatory body. All insurance providers must file their insurance rates with this entity.

Reader’s Question:

I have a 16 year old teen and she wants to start driving but I can’t afford car insurance so can she drive a car that is under my name and her mother’s name if she gets her license. Does she need to have insurance right when she obtains her license in Wyoming?

Jim

Cheyenne, WY

According to the Wyoming’s mandatory auto liability insurance law, anyone operating a motor vehicle must satisfy the state’s financial responsibility limits of 25/50/20.

In addition to that, under the Wyoming financial responsibility law, liability policy means an owner’s or an operator’s policy of liability insurance, certified as proof of financial responsibility, and issued by an insurance company authorized to do business in this state, to or for the benefit of the individual named as insured.

Plus, when your teen daughter is getting a license, since she is under 18, you as the parents will need to sign a minor’s release form. Part of this form may include being responsible for the minor while he is operating a vehicle or keeping insurance coverage so find out from the WY DOT exactly what the release form states.

Reader’s Question:

I want to know , what is the average auto insurance rate for a 16 year old teenager female?

May

Great Falls, MT

A 16 year old, On average, can expect to pay 2.52 times the base rate for their auto insurance. So for example, if your parents pay $500 for a year of auto insurance, then adding a 16 year old can expect to pay $1260 for a year of auto insurance.

You have to be rated with various factors to provide an accurate rate. In New Jersey a 16 year old may pay 3.2 times the base rate, however in Montana they pay 1.9 times the base rate.

There are things a 16 year old teenager can do to bring down the cost of their car insurance premium. Generally, it is cheaper to be added to your parent’s insurance policy than for you to buy your own. Most carriers will give discounts for getting at least a “B” average in school. This is often referred to as good student discount. Taking a recognized defensive driving courses or driver’s educational program may also help to lower a teenager’s insurance rate.

Reader’s Question:

When I was 16 and before I even got my driver’s license, I got a ticket for reckless driving, another ticket for not stopping after getting involved in an accident, and another ticket for speeding. It has been five years already. I want to find out if these tickets will affect my car insurance?

Marian

Stamford, CT

For the most part, these kind of situation will not affect your quest to buy car insurance. Most of the insurance providers only research the last 3 years on your motor vehicle record. There are some insurance providers that will research the last five years on your motor vehicle record. There is an extremely small minority of insurance carriers that will research the last 7 years of your motor vehicle history. Again, that is an extremely small number of companies. You may contact your car insurance company to verify how long they check back for motor vehicle driving record

Reader’s Question:

Will my car insurance rate be high since I am a new teen driver, 23 years old and female?

Kelly

Baton Rouge, LA

Insurance providers in most states are permitted to have their own rating system. These providers usually look at many factors when determining a car insurance rate, experience of the motorist can be once such factor. Age is also a factor when determining car insurance premium.

If you are a newly licensed teen motorist at age 23 then your rates will be higher than others that have been driving for almost ten years already however it may not be as high as a newly licensed driver at 16, since you may be thought of by insurance companies as more mature. Maturity to an insurers means less likely to operate a vehicle in a reckless manner. The insurance premium will likely though still be higher than another 23 year old female that has been driving for a few years because this individual has a driving record for the insurance provider to check.

What you can do as a new teen driver is to shop around for insurance rates since, different insurers have different rating standards.

Reader’s Question:

Why are some insurance companies offer good student discounts?

Michelle

Denver, CO

Good student discounts are offered by insurance companies as a way to help alleviate the high cost of car insurance for more responsible teens or young drivers by allowing this type of reduction in their car insurance rates.

Assording to statistics, students with higher grade point averages (GPA) tend to be more responsible when driving a motor vehicle. A discount is therefore offered to encourage responsibility in those teens or young drivers under the age of 25 who may be eligible.

To get more information if you would be eligible for a good student discount, you may contact your insurance broker and find out if they offer this discount and if so what their requirements are to acquire.

Reader’s Question:

How much should I be expecting to pay if I add a new teenager driver on my policy?

Beth

Miami, FL

Since teenagers that are newly licensed have such high rates of accidents they cost more to insure than an experienced driver who is more prone to avoid an accident than cause it.

The costs of adding a new teenager driver will depend upon your current car insurance rates, your geographical location and your teen to name a few. For example, if you live in a congested area where your teen is more likely to be involved in an accident compared to a more rural or suburban area the rate to insure your teenager will likely be more.

As for the teenager themselves, insurance rates may vary due to if they have taken formal driving lessons or driver’s education and if you are able to get any type of discount for their grades. If you have a teen that maintains a higher GPA this may allow you to cut costs for car insurance.

Reader’s Question:

I want to know what will happen if I get pulled over and I have no insurance? I’m under the age of 18 and I live in KY.

Jane

Newark, NJ

The State of Kentucky requires all drivers to carry liability coverage in the amounts of 25/50/10. The penalties for operating a vehicle without Kentucky auto insurance can be rather severe. First offense that you are caught, you will need to go to court and can be fined between $500 to $1000 or be imprisoned for not more than 90 days or both.

Your KY auto registration and license plates can be suspended for one year or until proof of auto insurance is provided. It is also possible that you will lose your license for up to a year. The penalties will increase for each subsequent infraction of not having proper proof of auto insurance.

If you do not yet have your full Kentucky license because of the graduated licensing system and being under 18, there may be other penalties.

Reader’s Question:

Hi Im 18years old. I just want to know how long should a new driver covered under their parents insurance policy after they get their license?

Gene

Thank you for asking Gene.

A new driver actually may not be automatically covered under their parent’s policy once they get their license.

A new driver may first have to be listed on their parents policy declaration’s page. Your parent need to contact their insurance agency first and you will have to be added or endorsed to their policy. Once you have obtained your driver’s license you should be added to the policy although some policies cover those driver’s with restricted license.

If you are listed on your parent’s or guardian’s policy, you should be covered on that policy until you are removed from the policy. I would suggest that you contact your parent’s insurance company to verify if you are include in their policy and what procedures you need to do to remove yourself from the policy. It is likely that you should stay on the policy if you live in the household.

Goodluck!

MariCAR

Reader’s Question:

what are the low insurance rate cars for a 17 year old boy?

Nathan

Good question Nathan.

Insurance rates for teenagers are usually high especially for young boys since statistically speaking they likely get into accidents. This means that this is considered as high risk drivers and would cost higher premiums.

Insurance companies rate cars differently. To be able to get a lower insurance premium rate, you might want to purchase a medium sized car, 4 cylinder sedan, 4 doors with safety features. The cheapest car is usually the cheapest to insure.

Some insurance companies give discount on cars with safety features. Some of the safety features that that these insurance companies want to see are air bags, anti lock brakes and electronic stability control.

There are some few cars that are said to be the safest for teens. Theses cars are Hyundai Elantra, Honda Accord coupe or Toyota Corolla. You should avoid cars that are very small for teens and does not have safety features. It is said that teens may tend to overact and might roll the vehicle. You should have safety features in your car if you are a young driver because you might get discounts on your insurance premiums.You may contact your insurance company or agent to know what cars can give you lower insurance rate.

Goodluck!

MariCAR