Insurers putting premium on teen driving skills

The eager, fresh-faced students come in droves to the Lord Ashley Driving School in Charleston.

Last week, for example, trainer Robert Scott said he taught a state-mandated class to 19 15-year-olds. At any given time, he has 20-30 students eager to get their permits and, ultimately, their licenses.

'We're always packed with kids,' Scott said.

It would seem that the trend would bode well for auto insurers: Get these budding adults behind the wheel as soon as possible and capture them as loyal, long-term customers. But some, including Allstate Corp., are calling for South Carolina and other states to make teens navigate a more difficult road to earn their driving privileges.

As Allstate and others see it, the greatest risk to the welfare of teens is parked outside their houses.

Allstate found in a 2005 report that every year for the past decade, about 6,000 teens die in motor vehicle accidents. Another 300,000 are injured, and no other hazard or behavior claims as many lives, according to the nation's No. 2 insurer.

Now, Allstate is playing the role of public-safety advocate through its nonprofit foundation. In a pricey publicity campaign, the company is calling for the broader use of graduated-driver licensing, or GDL, laws. It is asking the public to help enforce the laws, 'and if they aren't strong enough, ask your legislator to strengthen them,' the insurance giant urged in one of the ads.

GDL laws are designed to help new drivers get on-the-road experience by using a phased approach that includes a learner's stage, intermediate driving stage and unrestricted driving stage. Restrictions include certain times when inexperienced drivers can't get behind the wheel, such as after dark.

From a purely business standpoint, younger motorists generally pay higher premiums. They also generally account for more auto claims. So what's driving the campaign?

The grim figures about teens and automobiles speak for themselves, said Nancy Lemke, Allstate field corporate relations manager in Atlanta.

'We think that's a big deal,' Lemke said. 'We think we have a responsibility to do more to protect teen drivers.'

The campaign started in March and runs in 90 publications, including Time and Fortune magazines and The Wall Street Journal, plus segments on National Public Radio.

One ad reads: 'A 16-year-old can't see an NC-17-rated movie, drink alcohol or vote. But drive a 5,000-pound vehicle at 60 mph? That's OK.'

Another goes like this: 'If 12 fully loaded jumbo jets crashed every year, something would be done about it. Every year, nearly 6,000 teens die in car crashes.'

While the campaign does not specifically call for states to raise their minimum driving ages, Allstate says it wants to see strong graduated-driver licensing systems put in place throughout the country.

The company points to North Carolina, saying the recent implementation of one of the most comprehensive GDL laws in the country helped crashes involving 16-year-olds decline by 25 percent.

South Carolina, where teens can obtain a beginner's permit at age 15, already has a far-reaching set of rules, said Department of Motor Vehicles spokeswoman Beth Parks. Restrictions include the times of day when driving is not allowed and a minimum of six hours behind the wheel before new drivers can progress to a conditional license.

Like Allstate, the country's other largest auto insurance companies said they also support changes that would cut down on the number of wrecks involving teens.

No. 3 insurer Nationwide is planning its own promotional campaign this fall that will include a push for greater driver safety among teens, said spokesman Charley Gillespie.

The multimedia effort will encourage kids to talk to their parents about driving and learn from their parents' experiences.

Nationwide also is conducting a survey to be published this fall that asks younger drivers to reveal some of their parents' bad driving habits.

Parents will have an opportunity to say what they think they do well behind the wheel, and their children can point out that maybe mom or dad runs a stop sign once in a while.

While many of the findings are likely to be humorous, the study has a serious side, Gillespie said.

'Kids start learning from their parents' driving habits as soon as their seat is turned around,' he said.

State Farm doesn't have a teen-related campaign planned, but the company does offer a number of initiatives aimed at younger drivers, said spokesman Bruce White. For example, it runs a 'Steer Clear' program, where younger drivers can save money on their premiums.

State Farm, the nation's largest property and casualty insurance company, supports the graduated-licensing concept that eases young drivers into the habits and responsibilities of safe driving, White said.

Allstate's Lemke said the company's campaign purely is about reversing a disturbing trend. The company will launch a new campaign in the fall aimed at parents and the role they play in educating young drivers.

'We see it as a tragedy,' Lemke said. 'We just think it needs to be addressed.'

Back at Lord Ashley, Joanna Hoover's son, Josh, 15, took his last class with Scott at the driving school on Wednesday, some six months after the Wando High School student got his beginner's permit. His mother said she supports the graduated-licensing process, but opposes any increases in the minimum driving age.

Since the day her son got his permit, she said, she has encouraged him to get as much on-the-road experience as possible. While younger drivers are responsible for their actions behind the wheel, a parent's role is to teach them the importance of responsible driving, she said.

Hoover said the world today puts enormous demands on many parents, and with a car central to modern life, a driver's license provides teens, and their parents, with greater freedom.

'I don't think I've driven once since he got his learner's permit,' she said. 'These kids are driving themselves back and forth without relying on their parents.'

On Thursday, Josh passed his driving test and now has a conditional license, which means he can drive alone during daylight hours.

Reach Peter Hull at 937-5594 or phull@postandcourier.com.