Tuesday, 1 May 2007
Ohio Law For Teen Drivers Lowers Auto Rates
The Ohio State Legislature recently passed a law that restricts teen drivers. The law went into effect in early April.
In support of the law, auto insurance companies Grange Auto Insurance, State Auto Insurance, and Allstate have begun reducing their premiums. Grange has announced they will give teens up to a 5% discount, and State Auto will reduce rates 5-10%.
Allstate policyholders can also receive additional discounts if they take an online safety class.
“Insurance companies are starting to see lower losses from teen drivers, and are turning around and passing those savings on to customers,” said spokesperson for the Ohio Insurance Institute, Mary Bonelli.
The new law restricts teens under the age of 17 from carrying more than one non-related person in their car, and prohibits them to go on the road from 12 midnight to 6 a.m. without a parent or guardian.
It also puts a restriction for 17-year old drivers — they won’t be allowed to drive by themselves between 1 a.m. and 5 a.m.
Teen drivers are one of the most expensive age groups to insure, because their inexperience on the road leads to a higher risk of accidents. The discounts will help many Ohio parents, who sometimes see their auto insurance premiums double after adding a teen on their policy, reported the Dayton Daily News.
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