By Cedric E. Stephens, ContributorQuestion: We have a 22-year-old son. He passed his driving test two-years ago. Since then he has been involved in five accidents. All of them were his fault. He wrote off the car in the last accident and broke the bone in his thigh. Our insurers have now banned him from driving. Are their actions legal? Motor insurance is compulsory. Aren't insurers obliged to provide cover once a person has obtained a driver's licence? What would you suggest that we do to solve this problem?
P.B., Red Hills P.O.
ANSWER: YOU have not properly defined the problem. The issues you have with your insurers are symptoms - not causes. I will share some general information with you about "young drivers" - to put the matter in context - before trying to answer the three questions you posed. New drivers have what the Insurance Institute for Highway Safety (in the United States) calls "elevated crash rates." Novice drivers are at a "significant risk." They lack "- the judgment that comes with maturity and the skill that comes with experience." OK, you may say, that is true for the U.S. Is there any local data that supports this argument?
The "driver factor" was the main cause of accidents and deaths on our roads in 1999 says the Road Safety Unit of the Ministry Transport and Works. Almost two out of every three mishaps was due to "bad driving." One out of every four drivers in accidents was between 21 and 30 years old. Men (who generally consider themselves better drivers than women) are nine times more likely to be involved in accidents than the "fairer" sex. Many persons (especially the young men) here believe that once they have obtained a driver's permit that they can drive. This view is not shared by the authorities in the U.S. Most states impose limits on young drivers. They operate a graduated system there. It delays full licensure. There are three stages. The first is a minimum supervised (learner) period. It is followed by an intermediate licence. This is granted after the driving test has been passed. The second stage includes two restrictions. Night driving is restricted starting at 9:00 or 10:00 p.m. The other relates to passengers. It allows no teenage passengers or, not more than one such passenger.
UNSUPERVISED DRIVING
These restrictions limit unsupervised driving in high-risk situations. The third stage is a full-privilege driver's licence. It is only available after the completion of the first two stages. Here, in Jamaica, at one extreme, a parent can buy his 18 year-old teenage son a full privilege licence today. He, the son, can then drive - that same day - at top speed on our growing network of highways and roads At another extreme, the young driver is allowed to traverse narrow, hilly, unlit and poorly maintained roads at all hours of the day - no questions asked. It should come as no surprise why insurers here, as elsewhere, discriminate against young drivers. Novices are those below 25 years old and/or who have less than three years' driving experience. Your son's accident record places him squarely into the high-risk category. Here are a few ideas you should explore in trying to solve the problem:
1. Your son should participate in finding solutions. You cannot solve it without his direct involvement.
2. The five accidents should be carefully analysed to determine the contributing factors and to establish if there was a common thread.
3. Your son may need to undergo some driver re-training. The exercise carried out in item 2 should provide some ideas. There are a few organisations in Jamaica that teach defensive driving.
4. There was no mention of your son's medical history. Could this factor have contributed to his accidents?
5. Consider the feasibility of supervising your son's driving for a period of say, three to six months. This means that although he is the holder of a full licence, you would not allow him to drive without either you or your wife being in the car.
6. Meet with your insurer (or broker) to discuss your plans and try to negotiate the removal of the ban.
7. Explore carrying an all sections excess on your motor policy. This would mean that you would pay a pre-agreed amount or co-insure all claims in the event of an accident and thus reduce the amount your insurer would pay.
8. If your insurer refuses to lift the ban on your son, try contacting other insurers. Insurers are in the business of making money. Try to remember this as you seek solutions to your problem. The trick is to convince them that the past is past and that the measures you and your son will implement will guarantee that the future will be unlike the past.
Cedric E. Stephens provides advice on risks and insurance. If you need free information or advice to solve a problem, write to The Financial Editor or, contact Mr. Stephens directly at aegis@cwjamaica.com
