According to Nationwide Mutual Insurance Co, the fourth biggest US auto insurer that is owned by policyholders has recently mentioned that more and more parents are delaying when teenagers can start driving. This situation may have the possibility of reducing premium revenue. According to a survey that is conducted by the abovementioned company has discovered that almost one in three parents cited costs that are associated with teen driving. Insurance, for that matter is a top concern. One in seven parents said that they will delay their child from letting them drive.
Households in the US with teen drivers pay an average of $3100 annually for expenses that includes insurance and gas, and parents have also required their children to look for jobs to help them augment bills. Adding a teenager to an insurance policy will surely increase premiums by 50% to a hundred percent.
As mentioned in an interview, Larry Thursby, the vice president of auto product and pricing at Nationwide has said that “assuming customers do delay, there would be fewer accidents, revenues would be down and profitability would be up.”
The percentage of policies for teenage drivers from Nationwide has decreased 6.9% since 2008. Now, about 5.4% of the insurers four million auto policies cover teenage motorists.