Answer: $346

Questions:

• Why do you think insurance companies raise a driver’s premium after they get a tlcket for texting while driving?
• What strategies do you use in order to avoid this temptation while driving?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (from Carinsurance.com): 

A driver texting ticket can increase your rates by an average of 23 percent ($346 yearly), a rate analysis by CarInsurance.com shows.

For context, that’s a bit more than a minor speeding ticket. Speeding tickets on average increase rates by 20 to 22 percent, depending on much you exceed the limit. It’s much lower than a DUI, which spikes premiums by 79 percent, but much higher than the 9 percent average jump for driving without a license or insurance.

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 Student's will learn what determines insurance premiums through this NGPF MOVE Activity: What Determines Your Insurance Premium?

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.