Senior Seth Schmautz was feeling good after a perfect day kayaking on the Flathead River. He was driving home on Highway 2, when, for no apparent reason, the driver in front of him slammed on his brakes. Schmautz rear-ended him, damaging both cars. Although the police decided the accident wasn't his fault, Schmautz received a letter just days later which informed him that he had been dropped from his insurance company.
"I had been on the good-grades, good-record policy," said Schmautz. "It seemed weird that they didn't raise my rates. They just dropped me."
Schmautz and his parents talked to the insurance agents, who agreed to let him back on the policy. However, if Schmautz gets a ticket, or is involved in a second accident, they'll drop him.
"I hate insurance companies because of how much power they have," said Schmautz. "We pump tons of money into them, but they can drop us in a second."
Car insurance plays a major role in many teenagers lives, especially in winter, when poor road conditions make driving a hazard. It's necessary and expensive, and, claim many disgruntled FHS students, unfair to teenagers.
"Liability costs $425 every six months if a teenager is added to his parents' policy," said Glacier Insurance agent Linda Warner. "If they're a good student, they get a 25 percent discount, which brings it down to $340 every six months."
Teenagers are especially expensive to insure. According to an AAA status report, young people bring both their inexperience and immaturity behind the wheel. The same report states that 16-year olds' fatal crashes are far more likely than those of older drivers to involve driver Specifically, 82 percent of 16 year-old drivers in fatal crashes during 1993 made at least one driving error that contributed to the crashes. Speeding is especially likely. Police reports indicate that 37 percent of all 16 year-old drivers in fatal crashes in 1993 were speeding.
The higher risk involved in teenage driving is reflected in the rates for younger drivers. Ages 18 and under pay double the amount that adults pay. Between ages 19 and 20, rates drop 10 percent, and again at 21 through 22. At age 30, a person is finally considered an adult in insurance terms.
According to Warner, Insurance rates raise with each accident or ticket. After the first incident, insurance is raised 35 percent. After the second, the person is put into a high-risk category. This can cost up to $530 every six months. A third incident can result in the person being kicked out of the preferred company. Any offense takes three years to be taken off an insurance record.
"The first time, the company will probably forgive you and just raise the rate," said Warner. "The second time, you go into high risk. If you can't get insurance in high risk, you are put in the state-assigned risk. You send your application in to the state of Montana and they pick a company that has to insure you. The rates are extremely high. At that point, you may lose your license."
A person who is involved in an accident should notify their insurance company.
"I think insurance companies are heartless," said junior Chris Hetrick. "But it's a necessary evil."
"If I get in another wreck, I'm dead," said Schmautz. "The pressure is on."