Reader’s Question:

My son drives our older car but my insurance company based our car insurance premium rate upon him being the primary driver of our newer car? We’re from Monroe, Louisiana. Is this valid?

Paula

Monroe, LA

Insurance companies’ policy guidelines on determining rates vary but it is normal for them to rate the youngest driver in your household as the highest rated driver and the newest vehicle as the highest rated vehicle. The reason behind this is that most insurance companies base the car insurance rates on the driver who develops the highest premium; this normally is the youngest driver. Other countries, such as the UK, also use this type of insurance rating. In addition, auto insurance policies are also rated base on the age of the youngest driver. For example, the base rates (the starting point for premiums) are set at the age of 30. That means drivers under the age of 30 attract surcharges while drivers over 30 attract insurance discounts.

In the United States it is a little better since premium rates begin to fall normally when a motorist is 25 years of age or older and has at least few years of driving experience. Try contacting the consumer division of Louisiana insurance regulatory body to find out what state auto insurance laws allow.

Tags: car insurance rate, New Driver Insurance, teen insurance, Young driver car insurance