Now 16-Year-Olds Can Double Your Car Insurance
As if you don’t have enough to worry about when your 16-year-old hits the road for the first time, get ready to see your insurance bill nearly double.
The average insurance premium for a married couple goes up 80 percent on average when adding a teen, but it spikes a full 16 percent more for adding a 16-year-old, according to a new report by InsuranceQuotes.com.
Requesting a “good student” discount is one way to offset the premium hike. “I’ve seen discounts as high as 25 percent for students who maintain at least a B average in high school or college,” InsuranceQuotes.com senior analyst Laura Adams said in a statement.
Related: The Best Time to Buy Car Insurance
And once a teen hits the ripe old age of 19, insurance increases by just 60 percent.
It’s much more expensive to insure teenage boys, with premiums increasing 92 percent for teen males versus just 67 percent for girls.
The analysis found that teenagers cost the most to insure in New Hampshire (115 percent increase), but parents will also see premiums double in Wyoming, Illinois, Maine and Rhode Island.
Hawaii is the only state that prohibits insurance companies from basing insurance quotes on age or length of driving experience, so it has the lowest increase in the nation (17 percent). Other states where parents won’t take as big a hit are New York (53 percent) and Michigan (57 percent).
Parents may be able to nab better car insurance rates by shopping around with several insurers.
Budget ‘Chaos’ Threatens Army Reset: Retired General
One thing is standing in the way of a major ongoing effort to reset the U.S. Army, writes Carter Ham, a retired four-star general who’s now president and CEO of the Association of the U.S. Army, at Defense One. “The problem is the Washington, D.C., budget quagmire.”
The issue is more than just a matter of funding levels. “What hurts more is the erratic, unreliable and downright harmful federal budget process,” which has forced the Army to plan based on stopgap “continuing resolutions” instead of approved budgets for nine straight fiscal years. “A slowdown in combat-related training, production delays in new weapons, and a postponement of increases in Army troop levels are among the immediate impacts of operating under this ill-named continuing resolution. It’s not continuous and it certainly doesn’t display resolve.”
Pentagon Pushes for Faster F-35 Cost Cuts
The Pentagon has taken over cost-cutting efforts for the F-35 program, which has been plagued by years of cost overruns, production delays and technical problems. The Defense Department rejected a cost-saving plan proposed by contractors including principal manufacturer Lockheed Martin as being too slow to produce substantial savings. Instead, it gave Lockheed a $60 million contract “to pursue further efficiency measures, with more oversight of how the money was spent,” The Wall Street Journal’s Doug Cameron reports. F-35 program leaders “say they want more of the cost-saving effort directed at smaller suppliers that haven’t been pressured enough.” The Pentagon plans to cut the price of the F-35A model used by the Air Force from a recent $94.6 million each to around $80 million by 2020. Overall, the price of developing the F-35 has climbed above $400 billion, with the total program cost now projected at $1.53 trillion. (Wall Street Journal, CNBC)
Chart of the Day - October 6, 2017
Financial performance for insurers in the individual Obamacare markets is improving, driven by higher premiums and slower growth in claims. This suggests that the market is stabilizing. (Kaiser Family Foundation)
Quote of the Day - October 5, 2017
"The train's left the station, and if you're a budget hawk, you were left at the station." -- Rep. Mark Sanford, R-S.C.