Stricter Licensing Standards Sought for a High Risk Auto Insurance Group

Mar 14, 2011, 08:00 ET from Online Auto Insurance, LLC

LOS ANGELES, March 14, 2011 /PRNewswire/ -- A group of US senators and representatives have introduced legislation to the new Congress that would establish federal driver's licensing standards for a high risk auto insurance group: beginning drivers.

Statistics show that teenagers are four times more likely to get into a crash than older drivers, and car insurance companies routinely charge younger drivers more for coverage in order to compensate for the increased risk.  OnlineAutoInsurance.com recommends that parents and teens ensure that beginning motorists get plenty of experience behind the wheel under low-risk conditions in order to minimize the chance of getting into an accident.

The new legislation introduced to both houses of Congress would make it a requirement for younger motorists to get a substantial amount of experience by setting a national licensing standard that, among other things, delays the issuance of permits until 16 years of age and of non-restricted licenses until the motorist is 18 years old.  It would also call for passenger and nighttime driving restrictions, as well as a prohibition on non-emergency cell-phone use for those in the early stages of the licensing process.

If the legislation is eventually signed into law, states would face gradual reductions in federal highway funding if they did not adopt licensing systems that meet the law's standards.

This type of licensing process, known as a graduated licensing (GDL) system, has been touted as an effective way to reduce the crash rate for the youngest on the road.  "If every state had a strong GDL policy, we could save 175 lives and prevent about 350,000 injuries each year," according to the Centers for Disease Control and Prevention.

Source: http://www.cdc.gov/Motorvehiclesafety/teenbrief/index.html

A survey recently released by a major insurance company reported that a majority of teenage respondents were supportive of passenger, nighttime-driving and cell-phone restrictions for those just beginning to drive.

To learn more about this and other insurance issues, readers can go to http://www.onlineautoinsurance.com/learn/high-risk-drivers.htm where visitors will find informative resource pages as well as a quote-comparison generator that can help consumers find the best rates for coverage.

SOURCE Online Auto Insurance, LLC



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