drivers ed requirement?

[J N Winkler]

It varies by the state, since insurance is regulated at the state level.  Insurers have to submit a rating plan to the state insurance commissioner (or equivalent regulator for insurance) and the plan has to be in conformity with state laws which place limitations on price discrimination in insurance.  In Kansas, for example, insurers can take some of the traffic citations a motorist has into account when setting insurance rates, but they are not allowed to consider, for example, speeding tickets on rural Interstates where the cited speed is less than 10 MPH over the posted speed limit.

Accidents are one of the biggest drivers of increased insurance rates.  If you are a young driver and have two single-vehicle accidents in a relatively short period of time, for example, you can expect to wind up in an assigned risk pool in Kansas.  This means that the state insurance commissioner intervenes on your behalf by requiring insurers to cover you in order to continue doing business in the state (so that the situation of "being uninsurable" does not exist in American states in the same sense that it does, for example, in Britain, where the financial services regulator gives insurance companies the technical option of refusing to do business), but the insurers are allowed to charge extremely high rates.  DUI is another big consideration--in Kansas I don't think you can get more than one DUI conviction without being put in assigned risk.

[agentsteel53]

DUI is another big consideration--in Kansas I don't think you can get more than one DUI conviction without being put in assigned risk.

the contrapositive of that is "if you get a single DUI conviction, you may not be put into assigned risk". 

Wow, dang, what do you have to do in a single incident to be reliably labeled the moron that you are? 

[Truvelo]

In Britain these days a speeding conviction generally doesn't have any effect on insurance. Age, or lack of, seems to be the biggest killer. Back in 1994 when I turned 17 the cheapest insurance quote I was given was £2000 ($3000). This was for a small 1 liter engine hatchback. The majority of insurance companies refused to quote. I dread to think what the situation is like today.

[agentsteel53]

In Britain these days a speeding conviction generally doesn't have any effect on insurance. Age, or lack of, seems to be the biggest killer. Back in 1994 when I turned 17 the cheapest insurance quote I was given was £2000 ($3000). This was for a small 1 liter engine hatchback. The majority of insurance companies refused to quote. I dread to think what the situation is like today.

good grief!  I thought 1000 a year in the US was bad.  Nowadays I'm down to about 133 every 6 months.  ah, the benefits of old age.  now as for that beer belly...

[Chris]

I've heard about these ridiculous auto insurances in the United Kingdom. I pay around $ 650 per year all risk. Before that, I had a liability only that was $ 550 per year, so the choice wasn't too hard.

[agentsteel53]

I've heard about these ridiculous auto insurances in the United Kingdom. I pay around $ 650 per year all risk. Before that, I had a liability only that was $ 550 per year, so the choice wasn't too hard.

I just carry a liability-only policy as I do not own a car.  At the time of rental, using my visa card gives me the necessary coverage on a rental car.

[Truvelo]

I know of people here who keep an insurance policy going when they sell their car so as to keep their no-claims bonus going should they return to driving in the future. This is the problem 17 year olds have when they pass their test and get their first car. After the first year or two the no-claims discount will reduce the ridiculous $3000 premiums somewhat. The high prices quoted to newly qualified 17 year olds is more of a kind way of saying we don't want your business than anything.

[Chris]

So one or two years of insurance (liability only?!) is more expensive than buying a second-hand car all together. That's BIZARRE.

[NJRoadfan]

So one or two years of insurance (liability only?!) is more expensive than buying a second-hand car all together. That's BIZARRE.

Thats the case in NJ for the most part. If you are 17 and go out on your own and buy a policy, expect to pay A LOT. Most people are on their parent's policies for a few years until they have experience under their belt and the premiums go down.

[KEK Inc.]

In the state of Washington, you're required to take a certified driver's ed class before you can get our intermediate license, unless you wait until you're 18.  Your insurance will be much lower, if you take the class regardless. 

Everyone is required to take the drive test, and I've noticed people who score below an 85% and above a 95% on the test are generally horrible drivers. 

[jdb1234]

I took a 6-week drivers ed course in High School.  I drove a grand total of zero times.

[Chris]

Most people are on their parent's policies for a few years until they have experience under their belt and the premiums go down.

They do this in the Netherlands as well, although extensive driving on your parents insurance is considered insurance fraud (because the insurance holder is not the regular driver).

However, how do they measure experience? Just by the number of years you have a license? Some people have a license but rarely drive themselves. That doesn't make you experienced.

[Duke87]

Most people are on their parent's policies for a few years until they have experience under their belt and the premiums go down.

They do this in the Netherlands as well, although extensive driving on your parents insurance is considered insurance fraud (because the insurance holder is not the regular driver).

When I got my license, we had to fill out some paperwork to get me in on my parents' insurance policy. This then made all of my driving legit. Of course, this also meant having a driver under 25 registered, which means up go the premiums.

[NJRoadfan]

They do this in the Netherlands as well, although extensive driving on your parents insurance is considered insurance fraud (because the insurance holder is not the regular driver).

However, how do they measure experience? Just by the number of years you have a license? Some people have a license but rarely drive themselves. That doesn't make you experienced.

To clarify, they are a named driver on their parent's policy along with their vehicle (if they have one). No fraud there. Experience is by the number of years you have your license. Years of continuous insurance coverage is factored in as well although I don't know exactly why that results in lower policy premiums (I'm not an actuary). If there is even a small lapse in insurance coverage, your premiums go up pretty quickly.

[agentsteel53]

Years of continuous insurance coverage is factored in as well although I don't know exactly why that results in lower policy premiums (I'm not an actuary). If there is even a small lapse in insurance coverage, your premiums go up pretty quickly.

I think they assume that with continuous coverage, you're continuously driving - and if there's a gap, then you have forgotten how to drive! 

[bugo]

However, how do they measure experience? Just by the number of years you have a license? Some people have a license but rarely drive themselves. That doesn't make you experienced.

I had over two years experience when I got my first driver's permit.  Driving on back roads with little to no traffic.  Driving on a highway was scary the first time when I actually had my permit.  But it was a wonderful way to learn to drive.

[Crazy Volvo Guy]

Here in Alabama, there ought to be a mandate that everyone, regardless of age, has to take a driver's ed course to renew their license next time, then start mandating that all new drivers must either take driver's ed or wait until 19 to get their license (since for some odd reason, in AL, you are considered a minor until 19 instead of 18)

People don't have a ****ing clue how to drive here.  And I've never once seen so much as a hint of a driver's ed car anywhere.