Rules for Intermediate Stage Young Drivers by State



State-specific intermediate stage young driver rules

Every state has slightly different rules governing intermediate-stage young drivers.  Search below for your state. Special thanks to the Insurance Institute for Highway Safety (www.iihs.org) for compiling this information.

Intermediate stage: Unrestricted stage:
restrictions on driving while unsupervised minimum age at which
restrictions may be lifted
Restriction on passengers
Minimum Unsupervised (family members excepted
State age driving prohibited unless otherwise noted) Nighttime restrictions Passenger restrictions
Alabama 16 midnight-6 am no more than 1 passenger 17(1) 17(1)
Alaska 16 1 am-5 am first 6 months—no passengers 16, 6 months 16, 6 months
Arizona 16 midnight-5 am secondary enforcement first 6 months—no more than 1 passenger younger than 18 secondary enforcement 16, 6 months 16, 6 months
Arkansas 16(2) 11 pm – 4 am no more than 1 passenger 18 18
California 16(3) 11 pm-5 am secondary enforcement first 12 months—no passengers younger than 20 (limited exception for immediate family) secondary enforcement 17 17
Colorado 16 midnight-5 am secondary enforcement first 6 months—no passengers; second 6 months—no more than 1 passenger secondary enforcement 17 17
Connecticut 16, 4 months(4) 11 pm – 5 am first 6 months—no passengers other than parents or a driving instructor; second 6 months—no passengers other than parents, driving instructor, or members of the immediate family 18 17, 4 months
Delaware 16, 6 months5 10 pm-6 am5 no more than 1 passenger5 17 17
District of Columbia 16, 6 months6 September–June: 11 pm-6 am Sun.–Thur., 12:01 am-6 am Sat.–Sun.; July–August: 12:01 am-6 am first 6 months—no passengers; thereafter, no more than 2 passengers 18 18
Florida 16 11 pm-6 am (age 16); 1 am-5 am (age 17) none 18 no
Georgia 167 midnight-6 am secondary enforcement first 6 months—no passengers; second 6 months—no more than 1 passenger younger than 21; thereafter, no more than 3 passengers secondary enforcement 18 18
Hawaii 168 11 pm-5 am no more than 1 passenger younger than 18 (household members excepted) 17 17
Idaho 159 sunset to sunrise first 6 months—licensees 16 and younger can have no more than 1 passenger younger than 17 16 15, 6 months
Illinois 1610 starts 10 pm Sun.-Thur., 11 pm Fri.-Sat., ends 6 am first 12 months—no more than 1 passenger younger than 20 18 17
Indiana 16, 6 months (16, 9 months without driver education)11 First 180 days, 10 pm – 5 am; thereafter, 11 pm-5 am Sun.–Fri.; 1 am-5 am Sat.–Sun. first 180 days-no passengers 18 17 (17, 3 months without driver education)
Iowa 1612,13 12:30 am-5 am none 1714 no
Kansas 1615 9 pm-5 am first 6 months – no more than one passenger younger than 18 16, 6 months 16, 6 months
Kentucky 16, 6 months16 midnight-6 am no more than 1 passenger younger than 20 unless supervised by a driving instructor secondary enforcement 17 17
Louisiana 1617 11 pm-5 am no more than one passenger younger than 21 between the hours of 6 pm-5 am; no passenger restriction from 5 am-6 pm 17 17
Maine 1618 midnight-5 am18 first 9 months—no passengers18 (effective 01/01/13) 16, 9 months (effective 01/01/13) 16, 9 months (effective 01/01/13)
Maryland 16, 6 months midnight-5 am19 first 5 months—no passengers younger than 18 secondary enforcement 18 16, 11 months
Massachusetts 16, 6 months20 12:30 am-5 am (between 12:30 am-1 am and 4 am-5 am the night driving and passenger restrictions are secondarily enforced; enforcement is primary at all other times) first 6 months—no passengers younger than 18 (between 12:30 am–1 am and 4 am–5 am the night driving and passenger restrictions are secondarily enforced; enforcement is primary at all other times) 18 17
Michigan 1621 10 pm-5 am no more than 1 passenger younger than 21 17 17
Minnesota 1622 midnight-5 am first 6 months—no more than 1 passenger younger than 20; second 6 months—no more than 3 passengers younger than 20 16, 6 months 17
Mississippi 1623 10pm-6am Sun.-Thur., 11:30pm-6am Fri.-Sat. none 16, 6 months no
Missouri 16 1 am-5 am first 6 months—no more than 1 passenger younger than 19; thereafter, no more than 3 passengers younger than 19 17, 11 months 17, 11 months
Montana 1524 11 pm-5 am first 6 months—no more than 1 passenger younger than 18; second 6 months—no more than 3 passengers younger than 18 16 16
Nebraska 16 midnight-6 am secondary enforcement first 6 months—no more than 1 passenger younger than 19 secondary enforcement 17 16, 6 months
Nevada 1625 10 pm-5 am secondary enforcement first 6 months—no passengers younger than 18 secondary enforcement 18 16, 6 months
New Hampshire 16 1 am-4 am first 6 months—no more than 1 passenger younger than 25 18 16, 6 months
New Jersey 1726 11 – 5 am no more than 1 passenger (exception is limited to drivers’ dependents) 18 18
New Mexico 15, 6 months27 midnight-5 am no more than 1 passenger younger than 21 16, 6 months 16, 6 months
New York 16, 6 months28 9 pm-5 am no more than 1 passenger younger than 2128 17 (18 without driver education)28 17 (18 without driver education)28
North Carolina 1629,30 9 pm-5 am no more than 1 passenger younger than 21; if a family member younger than 21 is already a passenger then no other passengers younger than 21 who are not family members 16, 6 months 16, 6 months
North Dakota 16; 15 for a parent requested restricted license The holder of a restricted license may only drive a car belonging to a parent or guardian and may not drive between the later of sunset or 9pm and 5am none 16 none
Ohio 1631 midnight-6 am (age 16), 1 am-5 am (age 17) secondary enforcement no more than 1 passenger unless supervised 18 17
Oklahoma 16 10 pm-5 am no more than 1 passenger32 16, 6 months (17 without driver education) 16, 6 months (17 without driver education)
Oregon 1633 midnight-5 am first 6 months–no passengers younger than 20; second 6 months–no more than 3 passengers younger than 20 17 17
Pennsylvania 16, 6 months 11 pm-5 am first 6 months— no more than 1 passenger younger than 18; thereafter, no more than 3 passengers 17 17
Rhode Island 16, 6 months34 1 am-5 am first 12 months–no more than 1 passenger younger than 21 17, 6 months 17, 6 months
South Carolina 15, 6 months 6 pm-6 am EST; 8 pm-6 am EDT no more than 2 passengers younger than 21 unless transporting students to and from school 16, 6 months 16, 6 months
South Dakota 14, 6 months (14, 3 months with driver education) 10 pm-6 am none 16 no
Tennessee 16 11 pm-6 am no more than 1 passenger 17 17
Texas 1635 midnight-5 am secondary enforcement no more than 1 passenger younger than 21 secondary enforcement 17 17
Utah 1636 midnight-5 am first 6 months—no passengers37 secondary enforcement 17 16, 6 months37
Vermont 1638 none first 3 months-no passengers without exception; second 3 months-no passengers except family members no 16, 6 months
Virginia 16, 3 months39 midnight-4 am40 secondary enforcement first 12 months—no more than 1 passenger younger than 18; thereafter, no more than 3 passengers younger than 1840 secondary enforcement 18 18
Washington 1641 1 am-5 am secondary enforcement first 6 months—no passengers younger than 20; second 6 months—no more than 3 passengers younger than 20 secondary enforcement 1742 1742
West Virginia 16 10 pm-5 am first 6 months—no passengers younger than 20; second 6 months–no more than 1 passenger younger than 20 17 17
Wisconsin 1643 midnight-5 am no more than 1 passenger 16, 9 months 16, 9 months
Wyoming 1644 11 pm-5 am no more than 1 passenger younger than 18 16, 6 months44 16, 6 months44

Notes:

1In Alabama, restrictions end after holding the intermediate license for at least 6 months and reaching age 17.

2In Arkansas, applicants for an intermediate license must be 16 and must be crash/violation free for 6 months. Licensees younger than 18 are prohibited from from transporting passengers who are unrestrained.

3In California, students enrolled in driver education may drive while supervised by an instructor. License applicants who do not take driver education must wait until age 18 for a license. They are not required to go through an intermediate license stage.

4In Connecticut, either driver education or home training is required for license applicants younger than 18. Permit holders may not carry any passengers aside from the person providing instruction, parents, or guardians. Time spent practice driving with a professional instructor counts toward the 40-hour certification requirement. Before an applicant who is less than eighteen years of age may take the driver’s test, parents or guardians must attend two hours of instruction regarding teen driving laws and related issues with such applicant.

5In Delaware, a driver education student does not need a permit to drive with a driver education instructor. After completing the on-road requirements of driver education, a driver education student who is at least age 15 years, 10 months may apply for a Driver Education Learner’s Permit, which allows the student to drive while supervised by an experienced driver. Upon completion of driver education, and if the student passes both the road and written tests, the student receives a Level 1 permit that for the first 6 months allows driving only while supervised. There also is a passenger restriction during the first 6 months of the Level 1 permit. No more than 1 passenger (family members excepted) is permitted in addition to the supervising driver. The Level 1 permit for the second 6 months is the equivalent of an intermediate license. During that period, holders may drive unsupervised between 6 am and 10 pm and may only carry 1 passenger. Applicants for a driver’s license who are younger than 18 must have held a Driver Education Learner’s Permit and/or a Level 1 permit for at least 12 months. Driver education is required for all license applicants younger than 18.

6In the District of Columbia, license applicants younger than 21 must go through the intermediate stage until they have completed it or until age 21.

7In Georgia, license applicants younger than 17 must have completed driver education.

8In Hawaii, license applicants younger than 18 must have completed driver education.

9In Idaho, license applicants younger than 17 must have completed driver education. There are 3 classes of learner’s permits–a training instruction permit for persons 14, 6 months taking driver education; a supervised instruction permit for practice driving with a nonprofessional supervisor; and an instruction permit for persons younger than 17 who have completed driver education and supervised driving or for persons 17 and older without either driver education or supervised driving.

10In Illinois, license applicants 18 and older are not required to have driver education or to go through an intermediate license stage.

11In Indiana, driver education determines the minimum age for permits and the intermediate license. People enrolled in or who have completed driver education must be age 15 to have a permit; otherwise, they must be age 16. The minimum age for an intermediate license is 16, 6 months with driver education; age 16, 9 months, without.

12In Iowa, driver education is required for an intermediate license and for an unrestricted license if applicant is younger than 18.

13In addition to the certification in the learner stage, Iowa requires a certification of 10 hours of supervised driving, 2 of which must be at night during the intermediate stage.

14In Iowa, restrictions end after holding an intermediate license for at least 1 year and reaching age 17.

15In Kansas, drivers age 15 but not yet 16 may be granted a restricted license if they have completed driver training. Restricted license holders younger than 16 may not drive unless supervised other than to and from school or work via the most direct route and may not carry minor passengers other than siblings. To get a restricted license, applicants must have driven at least 25 of the 50 hours required for a full license and must have held an instruction permit for 12 months.

16In Kentucky, license holders younger than 18 must complete a driver education course or a state-sponsored traffic school.

17In Louisiana, driver education is required for a permit and an intermediate license if the applicant is younger than 18. People 18 and older must have completed a prelicensing training course including a minimum of 8 hours of behind the wheel instruction.

18In Maine, driver education is required for a permit and a license if the applicant is younger than 18. The learner’s permit holding period and the certification of practice driving applies to license applicants younger than 21. The period of license restrictions may extend beyond the person’s 18th birthday.

19In Maryland, the nighttime driving restriction only applies to intermediate license holders younger than 18.

20In Massachusetts driver education is required of license applicants younger than 18.

21In Michigan, license applicants younger than 18 must have completed the second segment of driver education. Neither driver education nor an intermediate license is required for license applicants 18 and older.

22In Minnesota, license applicants younger than 18 must have completed driver education. Provisional license holders must be crash free to qualify for a full license.

23In Mississippi, license applicants 17 and older are exempt from the requirement to get an intermediate license.

24In Montana, license applicants younger than 16 must have completed driver education.

25In Nevada, driver education is required of all licensed applicants younger than 18 unless there is no driver education program offered within a 30-mile radius of the applicant’s residence.

26In New Jersey, the permit becomes an intermediate license after 6 months. The graduated licensing law applies to adults, except that the night driving and passenger restrictions are waived for new drivers 21 and older. If the applicant has not completed driver education, the minimum permit age is 17 and the minimum intermediate license age is 17, 6 months. Learner’s permit holders may not drive between 11 pm and 5 am and may carry only 1 passenger in addition to the supervising driver or any parent, guardian or dependant.

27In New Mexico, license applicants younger than 18 must have completed driver education.

28In New York, the minimum age for an unrestricted driver’s license is 18 (17 if the applicant has completed driver education). Effective, September 1, 2003, New York enacted a passenger restriction that applies to permit holders and license holders younger than 18 (17 if the applicant has completed driver education).

29In North Carolina, driver education is required for license applicants younger than 18.

30In North Carolina, a person who is at least 16 years old but less than 18 years old must complete a minimum of twelve additional hours (six of which must be at night) of supervised driving to obtain a full provisional license.

31In Ohio, driver education is required of license applicants younger than 18.

32In Oklahoma, a person who has been issued an intermediate Class D license shall not operate a motor vehicle with more than one passenger unless all passengers live in the same household as the custodial legal parent or legal guardian or a licensed driver at least twenty-one years of age is actually occupying a seat beside the intermediate Class D licensee.

33In Oregon, driver education is required of license applicants younger than 18. However, it is waived for applicants who certify an additional 50 hours of supervised driving.

34In Rhode Island, driver education is required of license applicants younger than 18.

35In Texas, the minimum license age is 18 for applicants who have not completed driver education.

36In Utah license applicants who are younger than 19 must have completed driver education.

37In Utah, passenger restrictions end when a driver has been licensed for 6 months or when the driver turns 18, whichever occurs first.

38In Vermont, driver education is required for license applicants younger than 18.

39In Virginia, driver education is required for license applicants younger than 19 (18 if applicant holds a valid license from another state). Virginia is introducing a 90-minute segment for parents of driver education students in Northern Virginia and nearby counties.

40In Virginia, the night driving restriction and passenger restriction (no more than 1 passenger younger than 18) apply to learner’s permit holders.

41In Washington, driver education is required for license applicants younger than 18.

42In Washington, intermediate license holders with a crash or violation history are ineligible for an unrestricted license until age 18.

43In Wisconsin driver education is required for license applicants younger than 18.

44In Wyoming, all applicants for an unrestricted license who are younger than 17 must have completed driver education and must have held an intermediate license for at least 6 months.

Learner’s Permit Info for Young Drivers in the US



Because of their high risk for automobile accidents, states govern teenage driving fairly tightly.  Below are the various state regulations that govern learner’s permits in each of the states.

Thanks to the Insurance Institute for Highway Safety (www.iihs.org) for compiling this information.

Learner’s Permit Rules by State

No unsupervised driving during this stage

State     Minimum entry age Mandatory holding period Minimum amount of supervised driving
Alabama     15(1)     6 months(1)    30 hours(1) (none with driver education)
Alaska  14  6 months  40 hours, 10 of which must be at night or in inclement weather
Arizona     15, 6 months(2)  6 months  30 hours, 10 of which must be at night (none with driver education)
Arkansas    14(3)     6 months(3)     none
California  15, 6 months(4)  6 months  50 hours, 10 of which must be at night
Colorado  15(5)  12 months  50 hours, 10 of which must be at night
Connecticut  16(6)  6 months(6) (4 months with driver education)  40 hours(6)
Delaware  16(7)  6 months(7)  50 hours, 10 of which must be at night(7)
District of Columbia  16(8)  6 months  40 hours in learner’s stage; 10 hours at night in intermediate stage
Florida  15(9)  12 months  50 hours, 10 of which must be at night
Georgia  15  12 months  40 hours, 6 of which must be at night
Hawaii  15, 6 months  6 months  50 hours, 10 of which must be at night
Idaho  14, 6 months(10)  6 months  50 hours, 10 of which must be at night
Illinois  15(11)  9 months    50 hours, 10 of which must be at night
Indiana  15(12)  6 months  50 hours, 10 of which must be at night
Iowa  14  6 months  20 hours, 2 of which must be at night(13)
Kansas  14(14)  12 months  25 hours, in learner phase; 25 hours before age 16; 10 of the 50 hours must be at night(14)
Kentucky  16(15)  6 months(15)  60 hours, 10 of which must be at night(15)
Louisiana  15(16)  6 months  50 hours, 15 of which must be at night
Maine  15(17)  6 months(17)  35 hours, 5 of which must be at night(17)
Maryland  15, 9 months  9 months  60 hours, 10 of which must be at night
Massachusetts  16(18)  6 months(18)  40 hours(19)
Michigan  14, 9 months(20)  6 months  50 hours, 10 of which must be at night
Minnesota  15(21)  6 months(22)  30 hours, 10 of which must be at night
Mississippi  15  12 months(23)  none
Missouri  15  6 months  40 hours, 10 of which must be at night
Montana  14, 6 months(24)  6 months  50 hours, 10 of which must be at night
Nebraska  15(25)  6 months  50 hours, 10 of which must be at night (none with driver education)
Nevada  15, 6 months  6 months  50 hours, 10 of which must be at night
New Hampshire  15, 6 months(26)  none  40 hours, 10 of which must be at night
New Jersey  16(27)  6 months(27)  none
New Mexico  15(28)  6 months  50 hours, 10 of which must be at night
New York  16(29)  6 months  50 hours, 15 of which must be at night
North Carolina  15(30,31)  12 months(31)  60 hours, 10 of which must be at night, learner phase; 12 hours, 6 of which must be at night, intermediate phase
North Dakota  14 Under 16, 12 months; over 16: 6 months or until age 18, whichever comes first  over 16: 50 hours; ≥ 16: none
Ohio  15, 6 months  6 months  50 hours, 10 of which must be at night
Oklahoma  15, 6 months(32)  6 months  50 hours, 10 of which must be at night(33)
Oregon  15  6 months  50 hours34(100 hours without driver education)
Pennsylvania  16  6 months  65 hours, 10 of which must be at night and 5 of which must be in inclement weather
Rhode Island  16(35)  6 months  50 hours, 10 of which must be at night
South Carolina  15  6 months  40 hours, 10 of which must be at night
South Dakota  14(36)  6 months (3 months with driver education)  none(36)
Tennessee  15(37)  6 months  50 hours, 10 of which must be at night(37)
Texas    15(38)  6 months  20 hours, 10 of which must be at night(39)
Utah  15(40)  6 months  40 hours, 10 of which must be at night(40,41)
Vermont  15  12 months  40 hours, 10 of which must be at night
Virginia  15, 6 months(42)  9 months(42)  45 hours, 15 of which must be at night
Washington  15(43)  6 months  50 hours, 10 of which must be at night
West Virginia  15(44)  6 months(44)  50 hours, 10 of which must be at night (none with driver education)
Wisconsin  15, 6 months(45)  6 months(45)  30 hours, 10 of which must be at night(45)
Wyoming  15  10 days  50 hours, 10 of which must be at night

Notes:

1)In Alabama, the supervising driver must be a parent, guardian, or driving instructor. At age 16, permit holders may drive with a licensed driver who is at least 21 years old.

2)In Arizona, a driver education instructor can authorize an enrolled student who is age 15 to drive only while supervised by the authorizing instructor.

3)In Arkansas, people age 14 can drive with an instruction permit after passing a written test. After passing a road test they are eligible for a learner’s license. Unsupervised driving is not permitted by holders of either the instruction permit or learner’s license. The combined holding period for the permit and restricted license is 6 months.

4)In California, students enrolled in driver education may drive while supervised by an instructor. License applicants who do not take driver education must wait until age 18 for a license. They are not required to go through an intermediate license stage.

5)In Colorado, the minimum permit age varies. Fifteen year-olds who are enrolled in driver education may apply for an instruction permit. Their supervising driver must be a parent, stepparent, grandparent, guardian, or driving instructor. A person age 15, 6 months may apply for an instruction permit which allows driving while supervised by a parent, stepparent, grandparent, or guardian. Although driver education is not required at this age, applicants for this permit must have completed a 4-hour driver awareness program. At 16, young drivers may apply for a permit that allows driving while supervised by a licensed driver age 21 or older.

6)In Connecticut, either driver education or home training is required for license applicants younger than 18. Permit holders may not carry any passengers aside from the person providing instruction, parents, or guardians. Time spent practice driving with a professional instructor counts toward the 40-hour certification requirement. Before an applicant who is less than eighteen years of age may take the driver’s test, parents or guardians must attend two hours of instruction regarding teen driving laws and related issues with such applicant.

7)In Delaware, a driver education student does not need a permit to drive with a driver education instructor. After completing the on-road requirements of driver education, a driver education student who is at least age 15 years, 10 months may apply for a Driver Education Learner’s Permit, which allows the student to drive while supervised by an experienced driver. Upon completion of driver education, and if the student passes both the road and written tests, the student receives a Level 1 permit that for the first 6 months allows driving only while supervised. There also is a passenger restriction during the first 6 months of the Level 1 permit. No more than 1 passenger (family members excepted) is permitted in addition to the supervising driver. The Level 1 permit for the second 6 months is the equivalent of an intermediate license. During that period, holders may drive unsupervised between 6 am and 10 pm and may only carry 1 passenger. Applicants for a driver’s license who are younger than 18 must have held a Driver Education Learner’s Permit and/or a Level 1 permit for at least 12 months. Driver education is required for all license applicants younger than 18.

8)In the District of Columbia, the learner’s stage is mandatory for all license applicants, regardless of age. A nighttime restriction (9 pm-6 am) applies in the learner stage.

9)In Florida, for the first three months, learners permit holders may not drive after sunset and thereafter may not drive after 10 p.m.

10)In Idaho, license applicants younger than 17 must have completed driver education. There are 3 classes of learner’s permits–a training instruction permit for persons 14, 6 months taking driver education; a supervised instruction permit for practice driving with a nonprofessional supervisor; and an instruction permit for persons younger than 17 who have completed driver education and supervised driving or for persons 17 and older without either driver education or supervised driving.

11)In Illinois, enrollment in driver education is required for permit applicants age 15; without driver education, a permit applicant must be age 17, 3 months.

12)In Indiana, driver education determines the minimum age for permits and the intermediate license. People enrolled in or who have completed driver education must be age 15 to have a permit; otherwise, they must be age 16. The minimum age for an intermediate license is 16, 6 months with driver education; age 16, 9 months, without.

13)In addition to the certification in the learner stage, Iowa requires a certification of 10 hours of supervised driving, 2 of which must be at night during the intermediate stage.

14)In Kansas, drivers age 15 but not yet 16 may be granted a restricted license if they have completed driver training. Restricted license holders younger than 16 may not drive unless supervised other than to and from school or work via the most direct route and may not carry minor passengers other than siblings. To get a restricted license, applicants must have driven at least 25 of the 50 hours required for a full license and must have held an instruction permit for 12 months.

15)The Kentucky law prohibits learner’s permit holders from driving between midnight and 6 a.m. or from carrying more than 1 passenger younger than 20 unless supervised by a driving instructor.

16)In Louisiana, driver education is required for a permit and an intermediate license if the applicant is younger than 18. People 18 and older must have completed a prelicensing training course including a minimum of 8 hours of behind the wheel instruction.

17)In Maine, driver education is required for a permit and a license if the applicant is younger than 18. The learner’s permit holding period and the certification of practice driving applies to license applicants younger than 21. The period of license restrictions may extend beyond the person’s 18th birthday.

18)In Massachusetts, the night driving restriction for permit holders younger than 18 is midnight to 5 am, unless they are accompanied by a licensed parent or guardian.

19)In Massachusetts, the requirement for supervised driving is 30 hours for applicants who have successfully completed a driver skills development program in a closed, off-road course licensed by the Registrar of Motor Vehicles.

20)In Michigan, permit applicants younger than 18 must have completed the first segment of driver education.

21)In Minnesota, permit applicants younger than 18 must be enrolled in driver education.

22)In Minnesota, the permit holding period also applies to license applicants 18 and older unless they have completed driver education.

23)In Mississippi, license applicants 17 and older are exempt from the 12 month learner’s permit holding period.

24)In Montana, enrollment in or completion of driver education is required for permit applicants younger than 15.

25)In Nebraska, 14 year-olds who live 1.5 miles or more from school and who either live outside or attend school outside a metropolitan area may be issued a learner’s permit (called an “LPE permit”) and a limited license (called a “school permit”). The LPE permit authorizes supervised driving for the purpose of preparing for the school permit, which allows driving to and from school or anyplace while supervised by a parent or guardian.

26)New Hampshire does not issue learner’s permits. At age 15, 6 months a person can drive while supervised by a licensed driver 25 or older. License applicants who are younger than 18 must take driver education.

27)In New Jersey, the permit becomes an intermediate license after 6 months. The graduated licensing law applies to adults, except that the night driving and passenger restrictions are waived for new drivers 21 and older. If the applicant has not completed driver education, the minimum permit age is 17 and the minimum intermediate license age is 17, 6 months. Learner’s permit holders may not drive between 11 pm and 5 am and may carry only 1 passenger in addition to the supervising driver or any parent, guardian or dependant.

28)In New Mexico, permit applicants younger than 18 must be enrolled in driver education.

29)In New York, the minimum age for an unrestricted driver’s license is 18 (17 if the applicant has completed driver education). Effective, September 1, 2003, New York enacted a passenger restriction that applies to permit holders and license holders younger than 18 (17 if the applicant has completed driver education).

30)In North Carolina, driver education is required for permit applicants younger than 18.

31)In North Carolina, learner’s permit holders may not drive between 9 pm and 5 am for the first 6 months.

32)In Oklahoma, fifteen year-olds may drive, but only while supervised by an instructor.

33)In Oklahoma, learner’s permit holders may only operate a motor vehicle between the hours of 5:00 am and 10:00 pm.

34)In Oregon, driver education is required of license applicants younger than 18. However, it is waived for applicants who certify an additional 50 hours of supervised driving.

35)In Rhode Island, driver education is required of permit applicants younger than 18.

36)In South Dakota, learner’s permit holders may not drive between 10 p.m. and 6 a.m. unless under the supervision of their parent or guardian who is occupying a seat beside them.

37)Learner’s permit holders in Tennessee may not drive from 10 pm to 6 am.

38)In Texas, people who are 15 years of age or older but less than 18 years of age must satisfactorily complete and pass the classroom phase of an approved driver education course to be issued a permit.

39)In Texas, rules regulating supervised driving hours must be adopted by the commissioner of education no later than January 1, 2010 and implemented no later than May 1, 2010.

40)In Utah, permit holders younger than 18 may only drive under the supervision of a driving instructor, a parent or guardian, or a responsible adult who accepted liability for the permit holder’s driving by signing the permit application. Permit applicants younger than 19 must be enrolled in driver education.

41)In Utah, supervised driving in the learner stage may include up to 5 hours in a driving simulator.

42)In Virginia, the night driving restriction and passenger restriction (no more than 1 passenger younger than 18) apply to learner’s permit holders.

43)In Washington, permit applicants must be enrolled in driver education; otherwise the minimum permit age is 15, 6 months.

44)In West Virginia, learner’s permit holders younger than 18 may not drive 10 pm-5 am and may not carry more than 2 passengers in addition to the supervising driver.

45)In Wisconsin, enrollment in driver education is required for permit applicants younger than 18. During the learner’s stage, permit holders may carry 3 passengers if supervised by a driving instructor in a dual-control vehicle. Permit holders 16 and older may carry 1 passenger 25 or older who has been licensed at least 2 years.

How Much Should You Pay? Helpful Auto Insurance Statistics






We have the folks at the Insurance Information Institute (www.iii.org) to thank for this amazing collection of car insurance statistics.  Look for the information on your state to help you decide whether you’re getting a good deal on your car insurance!

 Car Insurance Stats

The average auto insurance expenditure dropped from $789 in 2008 to $785 in 2009, according to a January 2012 report from the National Association of Insurance Commissioners. In 2009 (the latest data available), the average expenditure was highest in the District of Columbia ($1,128), followed by New Jersey ($1,101) and Louisiana ($1,099).

AAA’s 2012 Your Driving Costs study found that the average cost to own and operate a sedan was about $8,946 in 2011, up  by 1.9 percent, or about $170 from the previous year. The cost reflects relatively large increases in fuel and tire costs, and more moderate increases in other areas, with those hikes mitigated by a decrease in depreciation costs. Average insurance costs for sedans rose 3.4 percent, or $33, to $1,001. This contrasts with the previous year, when costs dropped by 6.1 percent to $968. AAA insurance cost estimates are based on typical coverage for a low-risk driver with a clean driving record for a policy with a $500 deductible for collision and a $100 deductible for comprehensive coverage. Figures are not comparable with the National Association of Insurance Commissioners’ Auto Expenditures data below.

AVERAGE EXPENDITURES FOR AUTO INSURANCE, UNITED STATES, 2000-2009
Year Average expenditure Percent change Year Average expenditure Percent change
2000 $690 0.7% 2005 $832 -1.3%
2001 726 5.2 2006 817 -1.8
2002 786 8.3 2007 797 -2.4
2003 830 5.6 2008 789 -1.0
2004 843 1.6 2009 785 -0.5

Source: © 2012 National Association of Insurance Commissioners.

 
  • 76 percent of insured drivers purchase comprehensive coverage in addition to liability insurance, and 71 percent buy collision coverage, based on 2009 NAIC data.
TOP TEN MOST EXPENSIVE AND LEAST EXPENSIVE STATES FOR AUTOMOBILE INSURANCE, 2009 (1)
Rank Most expensive states Average expenditure Rank Least expensive states Average expenditure
1 District of Columbia $1,128 1 North Dakota $510
2 New Jersey 1,101 2 South Dakota 521
3 Louisiana 1,099 3 Iowa 532
4 New York 1,057 4 Idaho 555
5 Delaware 1,021 5 Nebraska 559
6 Florida 1,006 6 Kansas 578
7 Rhode Island 969 7 Wisconsin 591
8 Connecticut 952 8 Maine 598
9 Nevada 944 9 North Carolina 610
10 Maryland 929 10 Ohio 616

(1) Based on average automobile insurance expenditures.

Source: © 2012 National Association of Insurance Commissioners.

 

AUTO INSURANCE EXPENDITURES, BY STATE

The tables on the following pages show estimated average expenditures for private passenger automobile insurance by state for 2005 to 2009, providing approximate measures of the relative cost of automobile insurance to consumers in each state. To calculate average expenditures the National Association of Insurance Commissioners (NAIC) assumes that all insured vehicles carry liability coverage but not necessarily collision or comprehensive coverage. The average expenditure measures what consumers actually spend for insurance on each vehicle. It does not equal the sum of liability, collision and comprehensive expenditures because not all policyholders purchase all three coverages.

Expenditures are affected by the coverages purchased as well as other factors. In states where the economy is healthy, people are more likely to purchase new cars. Since new car owners are more likely to purchase physical damage coverages, these states will have a higher average expenditure. The NAIC notes that urban population, traffic density and per capita income have a significant impact on premiums. The latest report shows that high premium states tend also to be highly urban, with higher wage and price levels and greater traffic density. Tort liability and other auto laws, labor costs, liability coverage requirements, theft rates and other factors can also affect auto insurance prices.

AVERAGE EXPENDITURES FOR AUTO INSURANCE BY STATE, 2005-2009
2009 2008 Average expenditure
State Liability Collision Compre-hensive Average expenditure Rank (1) Average expenditure Rank (1) Averageexpenditurepercent change

2008-2009

 2007 2006 2005
Alabama $352 $302 $129 $652 34 $663 31 -1.6% $684 $684 $679
Alaska 554 371 148 897 12 904 12 -0.8 923 955 968
Arizona 483 282 204 837 14 858 14 -2.4 875 913 929
Arkansas 365 287 158 656 32 651 34 0.7 660 684 694
California (2) 442 350 102 754 19 779 20 -3.2 810 840 843
Colorado 451 261 143 741 20 729 23 1.7 738 785 829
Connecticut 596 333 121 952 8 950 9 0.2 964 981 993
Delaware 718 283 104 1,021 5 1,007 6 1.4 1,012 1,024 1,028
D.C. 591 430 245 1,128 1 1,126 1 0.1 1,140 1,164 1,187
Florida 707 268 114 1,006 6 1,053 4 -4.5 1,045 1,069 1,064
Georgia 427 339 154 754 19 761 21 -0.8 782 788 785
Hawaii 488 305 108 786 18 816 18 -3.7 837 853 846
Idaho 332 222 112 555 45 563 43 -1.4 564 577 585
Illinois 414 283 110 728 22 714 26 1.9 724 740 743
Indiana 358 241 112 620 38 611 38 1.5 618 631 658
Iowa 280 196 156 532 46 519 46 2.6 518 536 555
Kansas 300 237 192 578 43 576 42 0.2 568 579 589
Kentucky 458 252 120 699 27 699 28 0.0 720 739 751
Louisiana 651 408 212 1,099 3 1,105 2 -0.5 1,096 1,094 1,078
Maine 334 255 94 598 41 600 39 -0.4 611 634 644
Maryland 563 318 140 929 10 922 10 0.7 933 964 969
Massachusetts 528 285 110 860 13 903 13 -4.7 981 1,042 1,113
Michigan 508 384 150 913 11 906 11 0.8 928 925 931
Minnesota 410 204 163 694 28 698 29 -0.7 720 753 792
Mississippi 418 299 173 738 21 749 22 -1.6 765 746 746
Missouri 374 255 154 668 30 656 32 1.8 658 673 685
Montana 394 241 184 655 33 667 30 -1.7 666 661 686
Nebraska 316 206 171 559 44 547 44 2.3 554 584 619
Nevada 622 323 129 944 9 970 8 -2.7 999 1,006 985
New Hampshire 394 271 96 718 24 727 24 -1.3 750 793 792
New Jersey 745 342 130 1,101 2 1,081 3 1.8 1,104 1,152 1,185
New Mexico 435 288 175 713 26 725 25 -1.7 730 737 731
New York 704 335 147 1,057 4 1,044 5 1.3 1,047 1,083 1,125
North Carolina 371 239 109 610 40 595 40 2.4 591 596 602
North Dakota 240 192 219 510 48 503 47 1.3 512 530 555
Ohio 353 239 103 616 39 617 37 0.0 628 654 670
Oklahoma 394 282 159 680 29 663 31 2.7 646 659 678
Oregon 487 228 92 723 23 727 24 -0.5 723 726 738
Pennsylvania 488 297 119 811 17 817 17 -0.7 820 832 850
Rhode Island 646 356 115 969 7 986 7 -1.7 1,017 1,038 1,062
South Carolina 461 243 145 738 21 749 22 -1.5 762 756 754
South Dakota 275 185 192 521 47 520 45 0.2 534 554 566
Tennessee 362 270 120 634 36 639 35 -0.7 649 654 659
Texas 481 361 180 860 13 854 15 0.8 808 820 857
Utah 444 268 105 716 25 709 27 0.9 697 702 707
Vermont 338 276 109 646 35 653 33 -1.2 662 687 700
Virginia 389 252 116 667 31 663 31 0.7 662 685 700
Washington 548 251 110 826 15 839 16 -1.6 841 839 842
West Virginia 502 292 171 815 16 807 19 0.9 819 827 859
Wisconsin 330 205 118 591 42 581 41 1.6 582 590 615
Wyoming 317 272 199 623 37 632 36 -1.4 631 639 640
United States $474 $294 $132 $785   $789   -0.5% $797 $817 $832

(1) Ranked highest to lowest by average expenditure. States with the same premium receive the same rank.

(2) Preliminary.

Note: Average expenditure=Total written premium/liability car years. A car year is equal to 365 days of insured coverage for a single vehicle. The NAIC does not rank state average expenditures and does not endorse any conclusion drawn from these data.

Source: © 2012 National Association of Insurance Commissioners.

 

TOP TEN MOST EXPENSIVE AND LEAST EXPENSIVE CITIES FOR AUTOMOBILE INSURANCE, 2011 (1)
Rank Most expensive cities Average annual auto premiums Rank Least expensive cities Average annual auto premiums
1 Detroit, MI $5,941 1 Roanoke, VA $937
2 Philadelphia, PA 4,076 2 Green Bay, WI 999
3 New Orleans, LA 3,599 3 Wapakoneta, OH 1,008
4 Miami, FL 3,388 4 Portland, ME 1,053
5 Newark, NJ 2,867 5 Boise, ID 1,065
6 Baltimore, MD 2,851 6 Richmond, VA 1,109
7 Tampa, FL 2,796 7 Fairfield, OH 1,111
8 Providence, RI 2,711 8 Charlotte, NC 1,134
9 Los Angeles, CA 2,664 9 Lafayette, IN 1,140
10 Las Vegas, NV 2,651 10 Pocatello, ID 1,143

(1) As of August 2011, based on business driving for a 2012 Chevrolet Malibu LS. Assumes $100,000/$300,000/$50,000 liability limits, collision and comprehensive with $500 deductibles,100/300 uninsured motorist coverage and any mandatory insurance coverage.

Source: Runzheimer International.

 
  • Auto insurance tends to be more expensive in urban areas because of the higher density of traffic, increased likelihood of theft and vandalism, and greater incidence of fraud in some cities.

PREMIUMS

PRIVATE PASSENGER AUTOMOBILE INSURANCE, 2002-2011
($000)
Liability Collision/comprehensive
Year Net premiumswritten (1) Annualpercentchange Combinedratio (2) Annualpointchange (3) Net premiumswritten (1) Annualpercentchange Combinedratio (2) Annualpointchange (3)
2002 $82,109,346 10.2% 110.1 -1.9 pts. $57,629,893 7.8% 95.9 -6.3 pts.
2003 89,263,688 8.7 102.9 -7.2 61,885,986 7.4 92.2 -3.6
2004 92,903,456 4.1 99.3 -3.6 64,736,216 4.6 87.1 -5.1
2005 94,841,576 2.1 98.1 -1.2 64,920,917 0.3 90.7 3.6
2006 95,354,742 0.5 98.5 0.4 65,084,239 0.3 91.4 0.7
2007 95,063,907 -0.3 101.7 3.1 64,608,487 -0.7 93.4 2.0
2008 94,535,995 -0.6 103.2 1.6 64,083,652 -0.8 95.8 2.4
2009 94,823,610 0.3 106.6 3.4 62,543,019 -2.4 93.4 -2.4
2010 97,673,022 3.0 105.9 -0.7 62,601,665 0.1 93.4 0.0
2011 100,370,770 2.8 103.6 -2.3 62,956,397 0.6 99.5 6.1

(1) After reinsurance transactions, excluding state funds.

(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.

(3) Calculated from unrounded data.

Source: SNL Financial LC.

 

TOP TEN WRITERS OF PRIVATE PASSENGER AUTO INSURANCE BY DIRECT PREMIUMS WRITTEN, 2011
($000)
Rank Group Direct premiums written (1) Market share (2)
1 State Farm Mutual Automobile Insurance $31,488,620 18.6%
2 Allstate Corp. 17,451,279 10.3
3 Berkshire Hathaway Inc. 15,346,177 9.1
4 Progressive Corp. 13,423,205 7.9
5 Farmers Insurance Group of Companies (3) 9,972,084 5.9
6 USAA Insurance Group 7,778,764 4.6
7 Liberty Mutual 7,684,231 4.5
8 Nationwide Mutual Group 6,855,293 4.1
9 Travelers Companies Inc. 3,526,738 2.1
10 American Family Mutual 3,042,992 1.8

(1) Before reinsurance transactions, excluding state funds.

(2) Based on U.S. total including territories.

(3) Data for Farmers Group and Zurich Financial Group (which owns Farmers’ management company) are reported separately by SNL.

Source: SNL Financial LC.

 

Liability insurance pays for the policyholder’s legal responsibility to others for bodily injury or property damage. Collision and comprehensive insurance cover property damage and theft to the policyholder’s car.

PRIVATE PASSENGER AUTO INSURANCE LOSSES, 2001-2010 (1)
   Liability
Bodily injury (2)  Property damage (3)
Year Claimfrequency (4) Claimseverity (5),(6) Claimfrequency (4) Claimseverity (5)
2001 1.16 $10,149 3.97 $2,471
2002 1.15 10,400 3.92 2,552
2003 1.12 11,135 3.84 2,558
2004 1.11 11,640 3.75 2,596
2005 1.04 12,282 3.55 2,717
2006 0.98 12,956 3.40 2,804
2007 0.90 13,430 3.45 2,852
2008 0.90 14,098 3.41 2,904
2009 0.88 13,934 3.48 2,869
2010 0.90 14,486 3.50 2,881
Physical damage  (7)
  Collision Comprehensive (8)
Year Claimfrequency (4) Claimseverity (5) Claimfrequency (4) Claimseverity (5)
2001 5.53 $2,525 3.11 $1,152
2002 5.48 2,728 2.91 1,250
2003 5.13 2,921 2.76 1,324
2004 4.85 3,080 2.46 1,417
2005 5.04 3,067 2.38 1,457
2006 4.87 3,194 2.40 1,528
2007 5.13 3,139 2.47 1,519
2008 5.34 3,006 2.57 1,551
2009 5.48 2,869 2.75 1,389
2010 5.67 2,776 2.61 1,475

(1) For all limits combined. Data are for paid claims.

(2) Excludes Massachusetts and most states with no-fault automobile insurance laws.

(3) Excludes Massachusetts, Michigan and New Jersey.

(4) Claim frequency is claims per 100 earned car years. A car year is equal to 365 days of insured coverage for a single vehicle.

(5) Claim severity is the size of the loss, measured by the average amount paid for each claim.

(6) Includes loss adjustment expenses.

(7) Excludes Massachusetts, Michigan and New Jersey. Based on coverage with a $500 deductible.

(8) Excludes wind and water losses.

Source: ISO, a Verisk Analytics company.

 
  • In 2010 less than 1 percent of those with liability insurance had a bodily injury liability claim while 3.5 percent of those with liability insurance had a property damage liability claim, according to ISO data.

 

 

 

 

 

 

 

 

 

 

  • In 2010 nearly 6 percent of collision insurance policyholders had a claim, while 2.61 percent of those with comprehensive coverage had a claim.
  • A report by Allstate ranking cities in terms of car collisions, named Fort Collins, Colorado, the safest driving city in America in 2011. According to the report, the average driver in Fort Collins experiences an auto collision every 14 years, which is 28.6 percent less likely than the national average of 10 years. Washington, D.C. drivers were at the bottom of the ranking, with an accident every 4.8 years, on average.
INCURRED LOSSES FOR AUTO INSURANCE, 2006-2010 (1)
($000)
2006 2007 2008 2009 2010
Private passenger liability $56,021,405 $59,828,548 $60,781,574 $62,801,946 $64,108,535
Private passenger physical damage 36,203,926 37,506,667 39,187,993 36,650,410 36,447,401
Commercial auto liability 10,491,838 10,069,874 9,963,951 9,347,416 8,796,066
Commercial auto physical damage 3,528,543 3,520,129 3,501,646 3,015,850 2,910,161
Total $106,245,712 $110,925,218 $113,435,164 $111,815,622 $112,262,163

(1) Losses occuring within a fixed period, whether or not adjusted or paid during the same period, on a direct basis before reinsurance.

Source: SNL Financial LC.

 

THE SHARED/RESIDUAL MARKET AND NONSTANDARD MARKETS

All states and the District of Columbia use special systems to guarantee that auto insurance is available to those who cannot obtain it in the private market. Each type of system is commonly known as an assigned risk plan, although that term technically applies to only one type of plan. The assigned risk and other plans are known in the insurance industry as the shared, or residual, market. Policyholders in assigned risk plans are assigned to various insurance companies doing business in the state. In the voluntary, or regular, market, auto insurers are free to select policyholders.

The percentage of vehicles insured in the shared market is dropping, in part because of the evolution of the nonstandard sector of the voluntary market. The nonstandard market is a niche market for drivers who have a worse than average driving record or drive specialized cars such as high-powered sports cars and custom-built cars. It is made up of both small specialty companies, whose only business is the nonstandard market, and well-known auto insurance companies with nonstandard divisions.

Until the mid-1960s, most drivers who did not meet an insurance company’s “standard” or “preferred risk” underwriting criteria could only find coverage in the shared market, where prices are generally much higher and insurers pool or share the profits and losses. With advancements in computer technology that made it easier to set appropriate prices for smaller and smaller risk categories, some insurers began to specialize in insuring drivers with marginally bad driving records. By the late 1990s the nonstandard market accounted for about one-fifth of the total private passenger auto insurance market. This has held steady.  A 2008 Conning study found that in 2006 auto insurers specializing in nonstandard private passenger auto insurance had direct premiums written of $36.9 billion, representing 22 percent of the total private passenger auto insurance market.

PRIVATE PASSENGER CARS INSURED IN THE SHARED AND VOLUNTARY MARKETS, 2009
State Voluntary market Shared market Total Shared market as a percent of total
Alabama 3,403,314 2 3,403,316 (1)
Alaska 446,772 57 446,829 0.013%
Arizona 4,104,730 15 4,104,745 (1)
Arkansas 2,084,834 3 2,084,837 (1)
California 23,751,606 2,665 23,754,271 0.011
Colorado 3,697,549 0 3,697,549 (1)
Connecticut 2,434,479 367 2,434,846 0.015
Delaware 609,041 14 609,055 0.002
D.C. 226,955 310 227,265 0.136
Florida 11,331,352 3 11,331,355 (1)
Georgia 6,851,612 0 6,851,612 (1)
Hawaii 838,199 5,036 843,235 0.597
Idaho 1,220,058 40 1,220,098 0.003
Illinois 7,778,196 929 7,779,125 0.012
Indiana 4,393,161 3 4,393,164 (1)
Iowa 2,420,436 13 2,420,449 0.001
Kansas 2,405,397 1,328 2,406,725 0.055
Kentucky 3,031,559 31 3,031,590 0.001
Louisiana 2,856,335 2 2,856,337 (1)
Maine 999,788 15 999,803 0.002
Maryland 3,810,223 71,280 3,881,503 1.836
Massachusetts 3,989,731 106,328 4,096,059 2.596
Michigan 6,142,874 723 6,143,597 0.012
Minnesota 3,787,484 4 3,787,488 (1)
Mississippi 1,826,702 42 1,826,744 0.002
Missouri 4,197,558 13 4,197,571 (1)
Montana 787,392 151 787,543 0.019
Nebraska 1,531,531 6 1,531,537 (1)
Nevada 1,728,578 4 1,728,582 (1)
New Hampshire 887,429 464 887,893 0.052
New Jersey 5,283,328 29,578 5,312,906 0.557
New Mexico 1,485,223 26 1,485,249 0.002
New York 9,259,388 90,693 9,350,081 0.970
North Carolina 5,641,649 1,392,804 7,034,453 19.800
North Dakota 607,276 1 607,277 (1)
Ohio 8,040,076 1 8,040,077 (1)
Oklahoma 2,623,765 33 2,623,798 0.001
Oregon 2,721,559 8 2,721,567 (1)
Pennsylvania 8,563,617 15,566 8,579,183 0.181
Rhode island 668,454 8,090 676,544 1.196
South Carolina 3,328,156 -1 3,328,155 0.000
South Dakota 690,876 1 690,877 (1)
Tennessee 4,204,292 18 4,204,310 (1)
Texas  NA NA NA NA
Utah 1,821,162 1 1,821,163 (1)
Vermont 467,390 282 467,672 0.060
Virginia 6,045,722 930 6,046,652 0.015
Washington 4,539,004 1 4,539,005 (1)
West Virginia 1,306,645 14 1,306,659 0.001
Wisconsin 3,670,005 0 3,670,005 (1)
Wyoming 511,863 1 511,864 (1)
United States 185,054,325 1,727,895 186,782,220 0.925%

(1) Less than .001 percent.

NA=Data not available.

Source: Automobile Insurance Plans Service Office.

COLLISION LOSSES

The chart below shows the claim frequency, average loss payment per claim and average loss payment per insured vehicle year under collision coverage for recent model vehicles. The last item factors in both claim frequency and the average loss payment per claim. This combination is a measurement of overall insurance losses.

The claim frequency is expressed as a rate per 100 insured vehicle years. A vehicle year is equal to 365 days of insurance coverage for a single vehicle.

COLLISION COVERAGE INSURANCE LOSSES IN YEARS SINCE INTRODUCTION, 2008-2010 MODEL YEAR PASSENGER VEHICLES (1)
Model years
2008 2008 2010 2008-2010
Claim frequency per 100 insured vehicle years
Passenger cars and minivans 8.1 7.9 7.4 8.0
Pickups 6.4 6.0 5.6 6.3
SUVs 6.3 6.2 6.1 6.3
All passenger vehicles 7.4 7.3 6.9 7.3
Average loss payment per claim
Passenger cars and minivans $4,205 $4,199 $4,190 $4,202
Pickups 4,518 4,111 4,205 4,423
SUVs 3,833 3,809 3,922 3,834
All passenger vehicles 4,148 4,116 4,129 4,138
Average loss payment per insured vehicle year
Passenger cars and minivans $340 $330 $309 $335
Pickups 288 247 236 277
SUVs 242 235 240 240
All passenger vehicles 305 300 284 302

(1) Results based on data from model year introduction through July 2010. Older model years will have payments at different development stages than new model years.

Source: Highway Loss Data Institute.

CONSUMER PRICES

The Bureau of Labor Statistics’ consumer price index (CPI) tracks changes in the prices paid by consumers for a representative basket of goods and services. The cost of living (all items) rose 1.6 percent in 2010. The cost of insurance and related items rose more steeply, with auto insurance up 5.1 percent, hospital services up 7.8 percent and legal services up 3.6 percent.

CONSUMER PRICE INDICES FOR INSURANCE AND RELATED ITEMS AND ANNUAL RATES OF CHANGE, 2002-2011
(Base: 1982-84=100)
Cost of living(all items) Motor vehicle insurance Medical care items Physicians’ services Hospital services (1)
Year Index Percent change Index Percent change Index Percent change Index Percent change Index Percent change
2002 179.9 1.6% 291.6 8.8% 285.6 4.7% 260.6 2.8% 134.7 9.0%
2003 184.0 2.3 314.4 7.8 297.1 4.0 267.7 2.7 144.7 7.4
2004 188.9 2.7 323.2 2.8 310.1 4.4 278.3 4.0 153.4 6.0
2005 195.3 3.4 329.9 2.1 323.2 4.2 287.5 3.3 161.6 5.3
2006 201.6 3.2 331.8 0.6 336.2 4.0 291.9 1.5 172.1 6.5
2007 207.3 2.8 333.1 0.4 351.1 4.4 303.2 3.9 183.6 6.7
2008 215.3 3.8 341.5 2.5 364.1 3.7 311.3 2.7 197.2 7.4
2009 214.5 -0.4 357.0 4.5 375.6 3.2 320.8 3.0 210.7 6.9
2010 218.1 1.6 375.2 5.1 388.4 3.4 331.3 3.3 227.2 7.8
2011 224.9 3.2 388.7 3.6 400.3 3.0 340.3 2.7 241.2 6.2
Percent change2002-2011   25.0%   33.3%   40.1%   30.6%   79.1%

 

CONSUMER PRICE INDICES FOR INSURANCE AND RELATED ITEMS AND ANNUAL RATES OF CHANGE, 2002-2011 (Cont’d)
(Base: 1982-84=100)
Motor vehicle body work New vehicles New cars New trucks (2)
Year Index Percentchange Index Percentchange Index Percentchange Index Percentchange
2002 199.6 2.4% 140.0 -1.5% 137.3 -1.2% 147.8 -1.9%
2003 202.9 1.7 137.9 -1.5 134.7 -1.9 146.1 -1.2
2004 208.2 2.6 137.1 -0.6 133.9 -0.6 145.0 -0.8
2005 215.0 3.3 137.9 0.6 135.2 1.0 145.3 0.2
2006 224.8 4.6 137.6 -0.2 136.4 0.9 142.9 -1.7
2007 232.2 3.3 136.3 -1.0 135.9 -0.4 140.7 -1.5
2008 239.7 3.2 134.2 -1.5 135.4 -0.3 137.1 -2.6
2009 248.5 3.7 135.6 1.1 136.7 0.9 138.8 1.3
2010 254.4 2.4 138.0 1.8 138.1 1.0 142.7 2.8
2011 259.9 2.2 141.9 2.8 143.6 3.0 146.5 2.7
Percent change2002-2011   30.2%   1.4%   4.6%   -0.9%

 

CONSUMER PRICE INDICES FOR INSURANCE AND RELATED ITEMS AND ANNUAL RATES OF CHANGE, 2002-2011 (Cont’d)
(Base: 1982-84=100)
Used cars and trucks Tenants andhouseholdinsurance (3), (4) Repair of household items (3), (5) Legal services Existing single-family homes
Year Index Percent change Index Percent change Index Percent change Index Percent change Median price ($000) Percent change
2002 152.0 -4.2% 108.7 2.4% 125.1 4.8% 211.1 5.8% $165 7.8%
2003 142.9 -6.0 114.8 5.6 131.0 4.7 221.7 5.0 179 8.4
2004 133.3 -6.7 116.2 1.2 139.4 6.4 232.3 4.8 195 9.3
2005 139.4 4.6 117.6 1.2 147.4 5.7 241.8 4.1 220 12.4
2006 140.0 0.4 116.5 -0.9 154.7 5.0 250.0 3.4 222 1.0
2007 135.7 -3.0 117.0 0.4 161.2 4.2 260.3 4.1 219 -1.3
2008 134.0 -1.3 118.8 1.6 170.0 5.5 270.7 4.0 198 -9.5
2009 127.0 -5.2 121.5 2.2 176.0 3.5 278.1 2.7 173 -12.9
2010 143.1 12.7 125.7 3.5 181.7 3.2 288.1 3.6 173 0.2
2011 149.0 4.1 127.4 1.4 NA NA 297.4 3.2 166 -3.9
Percent change2002-2011   -2.0%   17.2%   45.2% (6)   40.9%   0.7%
(1) December 1996=100.(2) December 1983=100.(3) December 1997=100.(4) Only includes insurance covering rental properties.

(5) Includes appliances, reupholstery and inside home maintenance.

(6) 2002-2010.

NA=Data not available.

Note: Percent changes after 2007 for consumer price indices and all years for the median price of existing single-family homes calculated from unrounded data.

Source: U.S. Department of Labor, Bureau of Labor Statistics; National Association of Realtors.

 

San Diego Car Insurance Rates






If you are looking for a great rate on car insurance there are some things that you can do to help improve your rate. If you live in San Diego and you’re looking for car insurance you have tons of options, so it is important to compare companies and recognize which factors will help you get a good rate. Rates do vary from city to city and San Diego does have higher rates than most cities in California. The reason for this is that San Diego is a city with many people and lots of traffic. Car insurance rates in big cities tend to be higher than in more rural areas or smaller cities. The Carinsurance.com premium index reports that there is a mean car insurance rate of $1318 per year for San Diego residents. This rate is 10% higher than the average rate for all of California.

Insurers usually give discounts for customers that have been with them for a long time. However, if you have been with your insurer for a while and you feel that your rate is not as good as it could be than you should definitely shop around. Rates are constantly changing based on many factors, including the economy. It is good to stop around at least once every couple years or so. Two of the most important factors in determining your car insurance rate are your age and your accident history. Drivers over 25 have substantially lower car insurance rates than drivers under 25. Another one is your accident history. Each time you are in an accident, in which you are found to be at fault, your car insurance rate may go up dramatically. So really, the most important thing that you can do to get a good car insurance rate is to be a safe driver.

Cars nowadays come with many safety features that make it easier to drive safely. Many insurers will even offer discounts for specific safety features. This can be an incentive for many people to purchase a new vehicle. Most insurers will give a very nice discount for customers with multiple policies as well. For example, if you already have homeowners insurance in San Diego with one company you may want to consider also purchasing your auto insurance with them.

The type of insurance that you opt for can be a big determining factor in which company you will choose. Some insurers offer better rates for comprehensive coverage while other insurers may offer better rates for liability only. Although it is optimal, in most cases, to have comprehensive insurance for your car, if you can’t afford it there are many companies that offer pretty cheap liability only policies.

San Diego is a big city with many different insurers to choose from as well as many different insurance agents to speak to. Before buying auto insurance in San Diego decide which factors are important to you in your coverage, do your research and get lots of quotes.

The Difference Between Deductibles, Coinsurance, and Co-Pays






When it comes to understanding your health insurance policy, there are plenty of different terms that are important to understand. One of the more common misunderstandings amongst policy holders is the difference between medical deductible, coinsurance, and co-payments. Each of these terms actually represent a different type of payment that may or may not be required by your health insurance provider.

Here is a breakdown of what each term means and how it is different than the others.

Medical Deductible – The medical deductible on a health insurance plan is the total amount of money a policy holder must pay out-of-pocket before the insurance company covers any costs. If a policy holder has a $500 personal deductible, this means they will have to pay for the first five hundred dollars of medical expenses before their insurance company pays anything. Once the deductible has been met (family or personal), then the insurance company will begin paying all or some of the remaining medical costs which is called coinsurance.

Coinsurance – As noted earlier, once a policy holder has met his/her deductible the amount leftover paid by the insurer is known as coinsurance. This is a medical plan where the insurance company and the policy holder share any medical costs incurred, but only after the insured covers the medical deductible. A popular plan amongst provides is known as the 80/20 plan which requires the policy holder pay 20% of all medical costs (after the deductible is paid). The other 80% is paid by the insurance company. Be sure to read your plan documents to fully understand your plan options.

Co-payments –
Yet another type of medical costs you can expect to pay is the medical co-payment, which could be required for several types of services. For example, there is a good chance you have a co-payment requirement on any visit to the emergency room (probably a couple hundred dollars). Then there is the co-payment required at each doctor’s visit (i.e. $35). What about the chiropractor you see every week? Chances are there is another co-payment amount for those costs as well.

The terms listed above were just a few of the common types of medical expenses you can expect to pay for. It is important to remember the difference between each of these costs so you understand your health insurance plan completely.

Pay How You Drive Motor Insurance – How To Get A Lower Premium

A pay how you drive motor insurance is a fantastic way to help drive down the costs of a young driver car insurance policy. A pay how you drive policy is used for young drivers who are aged between 17 years of age and 25 years of age.

A pay how you drive policy uses a special device called a smart box which is installed in your car. It assesses the drivers driving behaviour and then feeds the information back to the insurer, and if the driver has been driving safely, then a discount is applied to the premium. If they have been driving badly, then the premium may go up. The driving behaviour is assessed over a three month period, so every three months the policyholder could see their premium being reduced.

The pay how you drive smart box which assesses your driving is a free device that the insurer will send to you, just follow the installation instructions. Part of the agreement is that policyholders must have this devise fitted in their vehicle at all times. Failure to do so could mean that your policy is void.

A lot of the big insures that now offer young driver car insurance policies are starting to implement these smart box driving devises, as they are a great way to assess the drivers driving behaviour and hen price their premium based on there success of driving safely.

Young drivers can get more discounts from the insurer when they also fit an anti-theft tracking devise. Fitting one of these to your vehicle will ensure its safety, and prevent your car from being stolen. This type of anti-theft device is also free and will not cost drivers any money.

So if you are under 25 years or age and you are looking for a cheap car insurance quote, you should seriously consider picking a policy that has a smart box and anti-theft tracking device. Both should help the motorist save money on their motor insurance premium. Direct line car insurance offer fanastic deals. See what they can offer young






drivers.

Easy Guide To Finding Cheap Car Insurance For Your Drivers






The increase in insurance premiums has affected many people in this economy, especially young drivers.
The main contributing factor to the high premiums is the fact that the number of young drivers involved in road accidents is always on the rise. It is also a fact that young drivers are more likely to get into an accident compared to mature drivers. When calculating premiums, insurers usually factor in the risk factor of the driver. Since young drivers have a higher risk factor, it is very difficult for them to get cheap car insurance for young drivers.

You can get a cheap automobile insurance for young drivers if your enroll into a Pass Plus program immediately after completing your driving examination. By enrolling into this program, some insurers will be willing to lower your premiums by up to 35 percent. Apart from getting lower premiums, you will also get a certificate from the DSA (Driving Standards Authority) once your instructor is happy with your driving. The type of vehicle will also determine whether or not you will get cheap car insurance for young drivers. In order to get lower rates, buy a vehicles that has safety features such as seat belts, car alarms, speed governors and airbags that are in good condition. Having a medium sized vehicle that does not have a high power engine will also reduce your premiums significantly.
Furthermore, you should get your own policy because getting covered in your parent’s policy will be more expensive since their driving history will affect your premiums. If you use your parents identity to obtain insurance coverage as a termed motorist, you may be committing a white collar crime known as ‘fronting’ and you will be in breach of terms thereby not eligible to receive compensation in case of an accident. You may also be asked to pay fine for the offense.

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Shopping Information for Philly Insurance






When living in Philadelphia, Pennsylvania, drivers need to be aware of specific Philadelphia auto insurance rules. Good car insurance is a necessity these days, and being aware of state specific laws gives drivers more chance of picking the most appropriate insurance policy for them.

Failure to adhere to the minimum Philadelphia car insurance requirements may result in a driver being subject to penalties and fines, or having their license suspended. Minimum requirements include $5,000 for medical benefits, $15,000 for bodily injuries to one person and $30,000 for all injuries which occur as a result of an accident. Many insurers recommend taking out a policy which exceeds these requirements to protect against liability claims which exceed the minimum payments.

When getting a Philadelphia car insurance quote there are several factors which may be taken into account. Low numbers of speeding tickets and a good credit score are both things which will help drivers achieve lower insurance premiums. The more expensive the car the higher the quote is likely to be.

Finding the best quote means shopping around. Drivers should obtain quotes from several companies and choose the one which offer the best policy at the most cost effective price. This should not be a long process as most insurance companies have an online presence meaning quotes can be gained over the Internet. It is worth researching Internet based review sites to see how satisfied other customers have been with the service of the companies in question. Companies which have been around for a considerable amount of time are likely to have survived because of good operating practices and high levels of customer service.

Auto insurance is essential as without it a driver can land themselves in serious legal and financial difficulties. Philadelphia auto insurance shopping doesn’t have to be difficult and policies are easy to obtain so drivers should find something to suit their circumstances without difficulty.

Car Insurance Resources

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Car Insurance Coverage in Tampa






Driving a car legally in the state of Florida requires having auto insurance. Auto insurance covers medical bills and the cost of repairs if there is an accident. Being covered by a reputable and solid Tampa auto insurance company is important for peace of mind.

State Minimum Requirements

Motorists in Florida are required by law to have no-fault coverage, property damage coverage and bodily injury coverage. The minimum is $10,000 for bodily injury liability for each person per accident. There is a limit on personal injury of $10,000 for medical and disability costs, but motorists can still sue. No-fault coverage means the insurance is paid out no matter who was at fault in the accident.

Choosing and Insurance Agency

When choosing a Tampa car insurance policy, motorists must check to see if the company is strong financially. If the insurer cannot pay, then the insurance is worthless. Many insurance agencies have been forced to close their doors because they did not have the means to pay on the policies they had written. Standard and Poor’s or Fitch’s are insurance rating companies that monitor the stability of insurance companies. Research should begin with how well either of these companies rate the insurance company.

Selecting Coverage

Adequate coverage is essential. It is fine to only meet Florida’s minimum requirements. However, many people opt for more coverage. Collision is one example. Collision covers the cost of damage from either striking another vehicle or a fixed object. Otherwise, it would be an out-of-pocket expense.

Comprehensive is another example of extra coverage. It pays for loss or damage when it occurs from something other than a vehicle accident. Included are vandalism, fire, theft and flood. If payments are still being made on the vehicle, the lien holder will require that there is extra coverage until the loan is paid.

Car Insurance Resources

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First time Car Insurance – How And Where To Get A Good Deal






There are certain elements of car insurance rates that you must consider if you are new on the road. Therefore, you need to learn one or two things about first time car insurance. First, the car you are thinking of buying has everything to do with the amount of insurance premiums that you will be paying. It follows that expensive cars attract high premiums and this could be attributed to the cost of possible expensive repairs in case of damage or theft. On the other hand, imported cars are also charge high premiums since there are few stores that sell imported car auto spare parts and this makes these spares a bit hard to find. On the other hand, owning a relatively common model that is also prone to theft will also attract high premiums.

However, there are certain things one may do to acquire considerable price for first time car insurance. The first thing you want to start with is to shop around for the best insurance rates before settling for a policy. First time car insurance varies from one insurance company to the other and comparing quotes and coverage offered by different companies. In fact, there are many comparison websites to determine the best policy available and the discounts you qualify for your first time car insurance.

Usually insurance companies offer discounts for female clients and for multiple insurance like guaranteed issue whole life insurance with the same company. Safety and security features installed in your car will work to reduce the premiums you pay for your car. Make efforts to install security devices since the less the risk to theft and damage the better will be the premiums. Finally, practicing safe driving or taking defense driving courses will also attract low premiums. By observing all these things, you will stand a greater chance to get better rates for first time car insurance if you take measures to reduce the risk coverage.

Car Insurance Resources

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