Teen Driver PWR Point GDI

Insuring Your Teen Driver
Risks, Suggestions and Insurance Considerations
Presented by: GDI Insurance Agency, Inc.

Teen Driver Statistics
• Almost 5,000 teens ages 16 to 19 died from injuries caused by

motor vehicle crashes in 2004.
• Nearly 400,000 teens ages 16 to 19 involved in automobile
accidents sustained nonfatal injuries that were severe enough to
require treatment in the emergency room in 2005.
• The risk of motor vehicle accidents is higher among 16- to 19-
year olds than among any other age group – they are four times
more likely to crash than older drivers.
• The motor vehicle death rate for male drivers ages 16 to 19 was
one and half times that of female teenage drivers in 2004.
• Teenage drivers are most likely to have an accident during their
first year of driving.
Source: Centers for Disease Control and Prevention (CDC)

Risks for Teen Drivers
Teens get into motor vehicle accident for the following reasons:
 Teens underestimate hazardous or dangerous situations, or are

not able to recognize potentially hazardous situations.
 Teens are more likely to speed and to follow too closely to the
driver in front of them. (Males tend to do these behaviors more
than females).
 Teens have the lowest seat belt use of all drivers.
Source: CDC and Insurance Information Institute (III)

 Teens have a greater danger of getting into accidents between

9 p.m. and 6 a.m. because of a lack of night driving experience.
 Teens succumb to peer pressure from passengers to drive
dangerously such as speeding or racing with other vehicles.
 The 2005 National Institute of Mental Health claims that the part
of the brain that weighs risks, makes judgment decisions and
controls impulses is not fully developed until age 25.
Source: CDC and III

Risk for Teen Drivers
 Teens with a blood alcohol level (BAC) of any concentration are at

a greater risk of crashing compared to older drivers.
 Over half of all teen drivers use cell phones while driving, which
inhibits their ability to drive safely.
Source: CDC and III

Accidents by Age of Drivers
Percent of Drivers in Fatal Percent of Drivers in All Percent of

Age Group Number of Drivers Total Accidents Total Accidents Total
Under 20 9,396,000 4.70% 6,300 10.10% 2,490,000 13.50%
20-24 16,886,000 8.40% 8,900 14.30% 2,640,000 14.30%
25-34 36,003,000 17.90% 11,300 18.10% 3,820,000 20.80%
35-44 40,394,000 20.00% 10,400 16.70% 3,420,000 18.60%
45-54 39,851,000 19.80% 9,600 15.40% 3,060,000 16.60%
55-64 26,685,000 14.70% 6,600 10.60% 1,610,000 8.80%

65-74 16,492,000 8.20% 4,200 6.70% 800,000 4.30%
Over 74 12,793,000 6.40% 5,000 8.00% 560,000 3.00%
TOTAL 2,015,000,000 100.00% 62,300 100.00% 18,400,000 100.00%
Note: Percentages do not add up exactly because of rounding; drivers under the age of 16 are not included. Source: National Safety Council, 2005
Graduated Drivers Licensing (GDL) Program
Graduated Drivers Licensing (GDL)
Teens gradually receive their drivers’ licenses in 3 phases:
• Receive a supervised learners’ permit

– Teens remain in this stage for an average of six months
– Learners’ permit is required while driving with adult supervision
– Must pass a vision and knowledge test before receiving intermediate
license
– Must always wear a seatbelt
– Must have no traffic and/or alcohol offenses
– Cannot drive at night
• Receive an intermediate drivers’ license
– Restrictions on the number of passengers allowed in the vehicle and
night driving
– Zero tolerance for alcohol offenses and traffic violations
– Can drive unsupervised in limited situations
• Full driving privileges granted
Benefits of GDL Programs:
 CDC found that the GDL program

in North Carolina reduced
hospitalizations and hospital costs
for teen drivers by more than one
third.
 Injury and fatality rates were 20
percent lower in states with
passenger and nighttime driving
restrictions.
Source: III
Johns Hopkins Bloomberg School of Public Health found that states

with the following elements in their GDL program had a 20
percent reduction in fatal crashes by 16-year old drivers:
 Minimum age of 15 ½ to receive learners’ permit

 Waiting period of at least three months before applying for an
intermediate license after receiving learners’ permit
 Minimum of 30 hours of supervised driving
 Must be at least 16-years old before obtaining intermediate license
 Must be at least 17-years old before obtaining full license
 Restrictions on number of passengers allowed in vehicles with teens
Source: III
Suggestions for Parents
• Enroll your child in a private driver education course taught by

a professional.
• Have your child obtain his/her learner’s permits as soon as
possible and get as much experience as they can throughout
the next year.
• Require your child to drive with a learner’s permit for a full
year, even if your state only requires this for six months.
• Have your child practice driving under various conditions such
as at night, during bad weather and in heavy traffic.
• Restrict the number of passengers allowed in the car with your

teen driver. The more passengers, the greater the risk.
• Do not allow your child to drive with new, teen drivers until
they have had permits for at least one year.
• Purchase a sensible, safe vehicle for your child to drive and/or
allow them to drive one of your vehicles that fits that
description.
• Do not give your child his/her “own” car. Allow them to drive a
“family vehicle” that is everyone’s to use. This will divert them
from treating it more haphazardly.
• Set firm rules about driving privileges and stick with them.
Relax the rules as your child becomes a better driver and
maintains a clean driving record.
• Make sure your teen gets enough sleep before driving; this will
lessen his/her chance for an accident.
• Set a good example in your own driving by abiding traffic
laws, not talking on a cell phone while driving and not carrying
on in-depth conversations while on the road with your teen in
the car.
• Create a driving contract between you and your child.
Parent/Child Driving Contract
Driving contracts satisfy the following:
1. Send the message that driving is a privilege that should be

taken very seriously.
2. Eliminate any confusion about your rules regarding driving.
3. Provide consequences for children who break driving rules.
Parent/Child Driving Contract
Contracts should contain the following (at a minimum):
 Curfew restrictions
 Where the teen may/may not drive
 Cell phone use, radio use, MP3 player use restrictions
 Seat belt usage
 Consequences of having or receiving accidents, tickets and fines
 Consequences of driving under the influence of alcohol and/or
drugs
 Passenger restrictions
 Consequences of violating any parts of the contract
Insurance Options and Obtaining the Best Rates
Motor Vehicle Insurance
Automobile insurance is an absolute must!
When determining your buying limits, consider:

• How much you can afford to pay in premiums
• Your obligation to someone who is injured in an auto accident
Obtaining the Best Rates
How can consumers get the best rates for their teens?
• Make sure teens attend driving schools approved by the

insurance company. There are discounts for passing approved
courses.
• Teens should maintain at least a “B” average (3.0 or higher) in
school. Ask about our “Good Student Discount.”
• Select a higher deductible, which lowers your premium. Opting
for a $250, $500 or $1,000 deductible can save a significant
amount. Determine whether you can afford out-of-pocket costs
in the event of an accident.
• Pay for minor damages yourself.
• Avoid buying teens their “own” vehicle; have them drive a family
car instead. The car should be in solid mechanical order, a four-
door vehicle and no less than five years old (avoids adding
collision insurance). These cars are also less likely to be stolen
and do better in crash tests.
• Keep all cars in parents’ names because they typically have more
assets, which equals lower premiums.
• If parents have good driving records, add teens to their current
policy and pay an increased premium. If parents’ driving records
are spotty or they drive extremely expensive cars, it’s best to
purchase a separate policy for teens.
• Only assign teens to one, less expensive car. Do not, under any
circumstances, allow them to drive cars that they are not insured
under.
• Check with GDI Insurance Agency, Inc. to see when we classify

teens as adults and, consequently, lower premiums (varies
between age 23 to 25). At this time, check to see if teens should
have their own policies.
• Inquire about our “safe driving programs.” Teens go through the
program and sign a contract promising not to drink and drive.
Completion of these programs can reduce premiums.
• Ask GDI Insurance Agency, Inc. about discounts for teens who go
off to college at least 100 miles away and do not keep a car on
campus.
Best Practices
Consider these best practices before your teen starts driving:
As soon as your teen is ready to get his/her learner’s permit,

contact GDI Insurance Agency, Inc.. If your child gets into an
accident, we will generally cover it but may charge a higher
premium retroactively if you did not notify them that your child
was driving. In rare cases, your coverage may be revoked.
Do not lower your liability coverage drastically to combat rate
increases. It simply does not make sense to carry less liability
for a high risk driver, like teens. Plus, you will be forced to
cover damages out-of-pocket if your child gets into an accident
without enough coverage.
Personal Liability Umbrella Policy
In addition to an automobile insurance policy,

consider purchasing a:
Personal Liability Umbrella Policy (PLUP).
This policy will protect you against litigation if your teen accidentally
injures someone or damages property. Even though your auto policy
has substantial limits, it is common for juries to award damages that
far exceed these limits.
PLUPs supplement existing policies to provide additional liability

protection.
Questions and Comments
GDI Insurance Agency, Inc. thanks you for

your attendance and participation.
Please let us know how we can help you

and your new teen driver!

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Insuring Your Teen Driver

Risks, Suggestions and Insurance Considerations

Presented by: GDI Insurance Agency, Inc.

• Almost 5,000 teens ages 16 to 19 died from injuries caused by

Source: Centers for Disease Control and Prevention (CDC)

 Teens underestimate hazardous or dangerous situations, or are

Source: CDC and Insurance Information Institute (III)

 Teens have a greater danger of getting into accidents between

Source: CDC and III

 Teens with a blood alcohol level (BAC) of any concentration are at

Source: CDC and III

Percent of Drivers in Fatal Percent of Drivers in All Percent of

Under 20 9,396,000 4.70% 6,300 10.10% 2,490,000 13.50%

20-24 16,886,000 8.40% 8,900 14.30% 2,640,000 14.30%

25-34 36,003,000 17.90% 11,300 18.10% 3,820,000 20.80%

35-44 40,394,000 20.00% 10,400 16.70% 3,420,000 18.60%

45-54 39,851,000 19.80% 9,600 15.40% 3,060,000 16.60%

55-64 26,685,000 14.70% 6,600 10.60% 1,610,000 8.80%

Over 74 12,793,000 6.40% 5,000 8.00% 560,000 3.00%

TOTAL 2,015,000,000 100.00% 62,300 100.00% 18,400,000 100.00%

• Receive a supervised learners’ permit

Benefits of GDL Programs:

 CDC found that the GDL program

Johns Hopkins Bloomberg School of Public Health found that states

 Minimum age of 15 ½ to receive learners’ permit

• Enroll your child in a private driver education course taught by

• Restrict the number of passengers allowed in the car with your

Driving contracts satisfy the following:

1. Send the message that driving is a privilege that should be

Contracts should contain the following (at a minimum):

When determining your buying limits, consider:

• Make sure teens attend driving schools approved by the

• Check with GDI Insurance Agency, Inc. to see when we classify

Consider these best practices before your teen starts driving:

As soon as your teen is ready to get his/her learner’s permit,

In addition to an automobile insurance policy,

Personal Liability Umbrella Policy (PLUP).

PLUPs supplement existing policies to provide additional liability

GDI Insurance Agency, Inc. thanks you for

Please let us know how we can help you

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