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The price of auto insurance varies from one group
or classification of drivers to a different group. The basis for this
is that, a few groups have worse driving records, higher accident
rates, and more pricey accidents than others.
More often than not, the maximum premiums are paid by the male driver
under the age of 25, with his rate depending on his marital position
and whether he owns, or is the main driver, of the car being insured.
Under the most broadly used rating structure, the rate of automobile
insurance for youthfuldrivers is scaled downward every so often. Rates
for unmarried males who are the owners of their cars are reduced periodically
from age 17-29.
In the majority of states, rates for unmarried males who are not the
owners of their cars, for married males, and for females are reduced
each year from age 17-21. For these groups, the “young driver”
surcharges are eliminated at age 25.
| Remember: |
If you add another vehicle to your
policy or change your insurance coverage, ask your agent to
provide a binder confirming the coverage. A binder is a temporary
written agreement, issued in the name of the insurance company,
that takes the place of the policy or endorsement until the
policy or endorsement is issued. Only a binder is evidence of
immediate coverage. |
Underage Drinking and Driving
Automobile insurance premiums can be tripled or nonrenewed for parents
whose underage children obtain operating while intoxicated (OWI) citations.
The OCI surveyed the twenty top writers of auto insurance in the state.
Six of the nineteen companies surveyed said that parents’ insurance
rates would be affected if a minor received a citation for underage
drinking when the minor has NOT been driving. The policy could be
canceled, be renewed with nonstandard rates, nonrenewed , or be surcharged.
The rate increases vary from 90% to 260%. Nineteen companies reported
a rate rise or cancellation of the policy if a minor receives a citation
for OWI. The rate increases range from 47% to 300%.
If your teenager is cited for underage drinking where the infringement
concerned the operation or use of a motor vehicle, the insurer might
nonrenew the parents' insurance policy or increase the premium which
would continue at the higher level for a number of years or until
the child leaves the household. If a child is cited for underage drinking
involving a motor vehicle, the parents' insurance rate could be affected
for a minimum of three years, or pending the minor is no longer a
member of the household, or no longer on the policy.
OCI recommends that, before using an underage drinking violation
to underwrite or rate a policy, the company investigates whether the
infringement is driving related.
If a young driver in your household has received citations for driving
related violations, including an OWI, those violations can also affect
other policies held by the parents.
One of the companies reports a possible effect for umbrella policies,
and for two other companies, a citation would affect insurance rates
on other nonauto motor vehicles, such as boats, or snowmobiles. The
Department of Motor Vehicles will release any records connected to
drinking and driving, even for a minor, to insurance companies, when
requested. Driver records that are not private can be accessed by
anybody under the open records law. Records that are not private include
OWI and UAO (Underage Alcohol Operation).
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