The Effect Social Networking Has on Auto Insurance

Posted in Auto Insurance

March 11th, 2010

A recent report from KIAH-TV in Houston explored why fewer teens have been getting their drivers licenses, and the possible role of their social networking activity. The report looked at the decreased desire for teens to interact in person as long as there were social networking sites like Facebook to turn to for interaction.

Has our society changed that much that teens are no longer interested in getting their drivers licenses because they can communicate online? And if so, how does this affect auto insurance rates?

Social Networking Has Affected Face-to-Face Socializing

There is no doubt that spending time on social media has had an effect on the amount of time people spend with each other in person. But no one could have imagined that it would have the same effect on teenagers.

According to a 2008 MacArthur Foundation study, teens usually have a full-time intimate community with whom they communicate in an always-on mode via mobile phones and instant messaging. The same goes for social networking sites like Facebook, Myspace and Twitter, which all offer mobile capabilities, allowing teens to interact 24/7.

Of the teens observed in the MacArthur study, some were cited as saying that they couldnt live without their access to social networking sites. Some even went as far as to say they were obsessed, which according to the study, was not a reason for parents to be alarmed. The desire to spend time interacting online rather than face to face has somewhat become normal and isnt viewed as unhealthy.

Driving No Longer a Necessity

In the KIAH-TV report, it was referenced that more teens are taking longer to acquire their drivers licenses due to a lack of necessity in interacting with friends in person. As found in a study by the Department of Transportation, this appears to be true.

According to the study, nearly 30 percent of 16-year-olds nationwide got their licenses in 2008, down from 45 percent in 1998. After interviewing some students, the report revealed that many teens and young adults are simply not interested in driving because Facebook made it so easy to connect with friends.

Socializing Media Good for Parents And Auto Insurance

The great news about many teens deciding to forgo driving in favor of social media is that car insurance quotes are sure to be lower than ever before. With a parent not having to add their teens to their policies, which undoubtedly raises rates, parents can experience the benefits of a great driving record without having to suffer the punishment of high car insurance rates for their teens.

There is no doubt that having a teenager on the road not only increases auto insurance rates, but could create a greater hazard for all drivers on the road. So if they are spending more time hanging out with friends online than yearning to drive to see them then the effect social media is having on the auto insurance world is actually a good one.