Facebook and Twitter Keeps Parents’ Car Insurance Rates Low

car insurance rates

It appears that fewer teens are interested in getting driver’s licenses since they have access to friends via social media websites, according to a new study. Car manufacturers are pushing to market cars to the seemingly uninterested youth, while parents are likely excited they can keep their car insurance rates low for a few more years.

Social Media Websites Keep Teens Connected

A study conducted by the University of Michigan’s Transportation Research Institute revealed that fewer teens are interested in acquiring their driver’s licenses than ever before. The internet, particularly social media websites, like Facebook and Twitter, are said to have a huge impact on teens’ desire to drive.

The percentage of 19-year-olds in the U.S. who have their driver’s licenses dropped to 69.5 percent in 2010 from 87.3 percent in 1983, the study found.

A separate 2010 report released by the Department of Transportation found that nearly 30 percent of 16-year-olds nationwide acquired their license in 2008, as compared to nearly 45 percent in 1998.

The study concluded that teen’s ability to remain in virtual contact with friends reduces their need to drive and engage in physical contact with friends.

Teen Drivers Increase Car Insurance Rates

Many parents are likely breathing a sigh of relief that their teens are not interested in acquiring their driver’s licenses, largely because teen drivers on their policies can increase car insurance rates.

But automakers aren’t as excited, according to recent reports. In fact, General Motors, Ford and Chrysler are attempting to lure young drivers with new car models like the Chevy Sonic, Ford Fiesta and Dodge Dart.

Convincing teens and young adults to purchase these vehicles could be a hard sell, however. Many young people who aren’t drawn into the internet are suffering from difficult economic times and are unable to purchase and maintain vehicles. Others are reportedly moving to larger cities where public transportation is sufficient.