Date: November 4, 2002
For more information contact: Wei Chen or Kyle Richmond, Public Information Staff, (608) 267-3782 or 267-9336, wei.chen@oci.state.wi.us or kyle.richmond@oci.state.wi.us

Madison, WI--Many parents who pay higher insurance premiums because their children drive should be aware that there are ways to reduce insurance rates, according to the Office of the Commissioner of Insurance (OCI).

"If your kids are attending school in a different city and are not driving the family's car as often, you can ask your insurance agent if you qualify for a reduced insurance premium," said Phil Kress, OCI Property & Casualty Section Chief. "Insurance discounts vary from company to company, but most auto insurers do have their own package of special discounts to attract customers."

Most insurance companies provide discounts for at least some of the following: accident-free drivers; a package for insuring home and auto with the same company; multiple vehicles; good students; and passive restraints (for vehicles with air bags or automatic seat belts).

"Even if your kids are at home, you may still be eligible to apply for a discount as long as your kids are good students and have good driving records," Kress said. "The standard of good student varies from company to company and it is always good to consult your insurance agent for further information."

The OCI also suggests that families who own two or more cars ask their insurance agent to name their teenager as primary driver of one car to reduce the insurance premium on other cars. In addition, older vehicles may not need to carry collision or comprehensive insurance. Consumers may also qualify for a multiple-car discount.

"Parents should be aware that their insurance premiums might increase substantially or the policy not renewed if their kids receive an 'operating while intoxicated' or speeding citation," Kress added. "The affect may last for several years or until the child is no longer a member of the household."

Parents and drivers who are confused about their automobile insurance policies should call their insurance agent for further explanation.

The OCI publishes a Consumer's Guide to Auto Insurance that explains how insurance premiums are rated and ways to lower them. To obtain a copy of the guide or inquire about other insurance brochures, contact the OCI at P.O. Box 7873, Madison, WI 53707-7873, send e-mail to ociinformation@wisconsin.gov, or call 1-800-236-8517. Brochures may also be downloaded from the OCI Web site at http://oci.wi.gov.