North Carolina Insurance Commissioner Wayne Goodwin has spoken out against a proposal by state lawmakers to eliminate funding for driver education through public high schools as a way to help close a deficit in the state budget.
The proposal was introduced by State Senator Ralph Hise during budget negotiations back in June. State lawmakers have now extended their budget talks until September 18 – the third extension since budget talks stalled in June – as they try to work out a compromise.
The Raleigh, N.C., News & Observer reports the North Carolina House opposes the proposal and included $26.38 million for the driver’s education program in its budget.
Goodwin said in a statement that he hopes the North Carolina Senate and House of Representatives will preserve funding for driver’s education in their final budget decision.
“North Carolina currently has some of the lowest car insurance costs in the country,” Goodwin said. “In addition to public safety concerns that come with eliminating driver’s education programs, more untrained drivers on the road could ultimately lead to higher insurance rates for all drivers.”
Currently, driver education is offered through public high schools for North Carolina teens planning to get their license. According to the North Carolina Department of Motor Vehicles, the state’s driver education course consists of 30 hours of classroom time, passage of a vision exam, and behind-the-wheel instruction to students enrolled in high school. Students who are not enrolled must obtain an eligibility certificate by showing special circumstances.
The North Carolina Department of Insurance said car insurance rates in the state are based on the claims experiences of the insurance companies. If, over time, they are paying more for claims, it is likely that rates would increase for all drivers, the insurance department said.
Teens, who already pay significantly more for car insurance than experienced drivers, face the possibility of higher rates if they are charged points for convictions or at-fault accidents, in accordance with the state’s Safe Driver Incentive Plan, which was created to give driver’s financial incentives to practice safe driving habits. Points are charged for convictions and at at-fault accidents occurring during the “experience period,” which is the three-year period preceding either the date an individual applies for coverage or the insurance company prepares to renew an existing policy.
“It is to everyone’s benefit to have skilled and safe drivers on the road,” Goodwin said.
The North Carolina News & Observer reported August 31 that budget negotiators in the State Senate offered a compromise to the House that included funding for the driver education program if House lawmakers were willing to make concessions on the ability of school districts to divert funds for elementary school teacher assistants. That proposal has been met with some opposition, the News & Observer reported.
Budget negotiations reportedly continued through Labor Day weekend with the goal of meeting the Sept. 18 deadline, the North Carolina Association of School Administrators said on its Legislative Link website.
Topics Mergers & Acquisitions Legislation Personal Auto North Carolina Training Development
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