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.