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> A Consumer Guide to… Youthful Drivers
A Consumer Guide to… Youthful Drivers
Published by:
Mila Kofman
YOUTHFUL DRIVERS If you have a person under 21 years of age (youthful driver) living in your home, you may have been thinking about licensing him or her to drive a car. Insurers cannot charge an extra premium if the youthful driver has a permit. However, once your youthful operator obtains a license, he or she must be added to your auto policy as either a principal or occasional operator. Since the wording in your policy automatically covers any resident relative living with you, the insurance company can charge a premium for any relative who lives with you in your home. Further, that person must remain on the policy unless he or she commits an act for which a policy can be canceled or nonrenewed by law. Another exception: If a youthful driver has his or her own vehicle and auto policy, the insurance company should not charge an extra premium for that driver on your policy. Maine has revised its motor vehicle laws in an effort to reduce motor vehicle fatalities and injuries suffered by young drivers and their passengers. Who Can Drive? Maine law allows drivers to be licensed at ages 16 and 17 with drivers’ training and at 18 without drivers’ training. After obtaining a learner’s permit, a driver who is under 21, must complete at least 35 hours of driving time with a licensed operator age 20 or over, who has held a valid license for at least two consecutive years. This 35 hours must also include five hours of night driving. What About the Cost Of Insurance? You may have also been thinking about the high costs of insuring a youthful driver. Even though insuring a youthful driver is expensive, there are some things you can do to keep these costs down. Driver Education Your teenager should complete an approved driver education course. These courses are available both commercially and through many school systems. Successful completion of either type of course will help reduce your premium. Choosing A Car As you shop for a car, discuss the type of car you are thinking about buying with your insurance producer to determine the impact on your insurance premiums. For example, sporty models can have substantially higher insurance costs. You may also want to consider an older car for which you will not buy collision coverage. Collision insurance on older cars is expensive when compared to the potential settlement. Although an older car is usually just as expensive to repair as a new car, insurance will not pay more for repairs than the book value of the car, less your deductible. Good Student Rewards If your son or daughter is a good student (B grades or better), you may be eligible for a "good student classification" on the family policy. This classification will keep your premiums down. Encourage your teenager to have good study habits in order to keep their grades as high as possible.
Adult’s Responsibility « Set a good example in your own driving habits. Accidents and convictions can increase premiums regardless of the driver’s age. « Use seat belts. It’s required by Maine law! « Drive defensively. A minor accident with no vehicle damage can still cause an increase in your premium if a passenger is injured.
What About the Law? It is important to inform the new driver about the costs of insurance and the consequences of violations and accidents. For example, Maine has increased the penalties for youthful drivers who operate under the influence, especially when there are passengers in the car who are under age 21. You may also want to use a contract in which the youthful driver, for the privilege of using the car, pledges to pay: (1) any traffic fine and resulting insurance premium increase (2) any premium charges for accidents The agreement should include a pledge that states:
Can My Policy Be Canceled? Be aware that when the young driver is licensed and added to your policy, your insurance company cannot cancel or nonrenew solely because of the new driver. The cancellation and nonrenewal of your policy is controlled by law and the consumer has certain basic rights. A policy may only be canceled or nonrenewed for valid reasons allowed by law. These reasons include convictions, accidents, or changes in the insured vehicle. If your policy is canceled or nonrenewed, you may have the right to a hearing at the Bureau of Insurance. Call the Property and Casualty Division of the Bureau of Insurance at 207-624-8475 or 800-300-5000 for information on how to schedule a hearing if your policy is canceled or nonrenewed.
Since 1870, the Bureau of Insurance has overseen and regulated the business activities of insurance companies, producers, consultants, and adjusters in our state. To ensure that the marketing of insurance is lawful and honest, policies and premiums are reasonable and just, and the payment of legitimate claims is dependable and timely, the Bureau is organized into the following work units: Property and Casualty, Life and Health, Market Conduct, Legal, Examinations, Financial Analysis, Self-Insurance, Workers’ Compensation, Licensing, and Administration.
Other consumer publications are available from: Visit the Bureau’s Web site at: www.maine.gov/insurance Printed Under Appropriation No. 014 02A 3041 012 Last Updated: July 16, 2008 |
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