When Buying Car Insurance, Young Drivers Should Stick with Mom and Dad
The parents of young drivers have enough to worry about, but a new study from insuranceQuotes.com finds that those who add coverage for an 18-to-24-year-old can expect to see an average annual premium increase of 80 percent on their existing car insurance. The good news: That’s still cheaper than if the young drivers bought insurance on their own. If those young drivers were to buy individual plans of their own, they’d pay 8 percent more on average — and in some cases, over 50 percent more — than their coverage costs on a parental plan.
Related: The Shocking Secret About How Your Car Insurance Rate Gets Set
Premiums can vary widely depending on the driver’s age and state. An 18-year-old can expect to pay an average of 18 percent more for an individual policy than he or she would if added to an existing policy. But in Rhode Island, an 18-year-old will pay an average of 53 percent more for an individual policy. In Connecticut and Oregon, the difference is 47 percent.
In states such as Arizona, Hawaii, and Illinois, it actually becomes cheaper, on average, for a young driver to get his or her own policy after turning 19. When it comes to determining premiums, Hawaii is the only state that doesn’t allow insurance providers to consider age, gender, or length of driving experience.
These are the five states with the greatest difference in premiums for young drivers buying their own coverage.
1. Rhode Island: 19 percent
2. Connecticut: 16 percent
3. North Carolina: 14 percent
4. Vermont: 14 percent
5. Maine: 14 percent
Related: Now 16-Year-Olds Can Double Your Car Insurance
And these five states have the smallest difference:
1. Hawaii: No difference
2. Illinois: No difference
3. Arizona: 2 percent
4. Mississippi: 5 percent
5. South Carolina: 5 percent.
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Tweet of the Day: The Black Hole of Big Pharma
Billionaire John D. Arnold, a former energy trader and hedge fund manager turned philanthropist with a focus on health care, says Big Pharma appears to have a powerful hold on members of Congress.
Arnold pointed out that PhRMA, the main pharmaceutical industry lobbying group, had revenues of $459 million in 2018, and that total lobbying on behalf of the sector probably came to about $1 billion last year. “I guess $1 bil each year is an intractable force in our political system,” he concluded.
Warren’s Taxes Could Add Up to More Than 100%
The Wall Street Journal’s Richard Rubin says Elizabeth Warren’s proposed taxes could claim more than 100% of income for some wealthy investors. Here’s an example Rubin discussed Friday:
“Consider a billionaire with a $1,000 investment who earns a 6% return, or $60, received as a capital gain, dividend or interest. If all of Ms. Warren’s taxes are implemented, he could owe 58.2% of that, or $35 in federal tax. Plus, his entire investment would incur a 6% wealth tax, i.e., at least $60. The result: taxes as high as $95 on income of $60 for a combined tax rate of 158%.”
In Rubin’s back-of-the-envelope analysis, an investor worth $2 billion would need to achieve a return of more than 10% in order to see any net gain after taxes. Rubin notes that actual tax bills would likely vary considerably depending on things like location, rates of return, and as-yet-undefined policy details. But tax rates exceeding 100% would not be unusual, especially for billionaires.
Biden Proposes $1.3 Trillion Infrastructure Plan
Joe Biden on Thursday put out a $1.3 trillion infrastructure proposal. The 10-year “Plan to Invest in Middle Class Competitiveness” calls for investments to revitalize the nation’s roads, highways and bridges, speed the adoption of electric vehicles, launch a “second great railroad revolution” and make U.S. airports the best in the world.
“The infrastructure plan Joe Biden released Thursday morning is heavy on high-speed rail, transit, biking and other items that Barack Obama championed during his presidency — along with a complete lack of specifics on how he plans to pay for it all,” Politico’s Tanya Snyder wrote. Biden’s campaign site says that every cent of the $1.3 trillion would be paid for by reversing the 2017 corporate tax cuts, closing tax loopholes, cracking down on tax evasion and ending fossil-fuel subsidies.
Read more about Biden’s plan at Politico.
Number of the Day: 18 Million
There were 18 million military veterans in the United States in 2018, according to the Census Bureau. That figure includes 485,000 World War II vets, 1.3 million who served in the Korean War, 6.4 million from the Vietnam War era, 3.8 million from the first Gulf War and another 3.8 million since 9/11. We join with the rest of the country today in thanking them for their service.
Chart of the Day: Dem Candidates Face Their Own Tax Plans
Democratic presidential candidates are proposing a variety of new taxes to pay for their preferred social programs. Bloomberg’s Laura Davison and Misyrlena Egkolfopoulou took a look at how the top four candidates would fare under their own tax proposals.
