NORTHBROOK, Ill., Sept. 21, 2011 /PRNewswire/ -- Sixty percent of
American parents whose teenage children currently hold a license
and nearly half of all parents (46 percent) say that the economic
downturn has led them to cut back on saving for or spending on
their child's driving, including the cost of a car and other
related expenses, according to a new survey from Allstate.
Not surprisingly, income is a factor in spending and saving
decisions.
- Nearly three-quarters (72 percent) of parents in households
earning less than $30,000 per year
say they are saving or spending less on their children's driving,
while just one-third (32 percent) of those in households earning
more than $75,000 say the same.
Interestingly, among parents who already have a child with a
driver's license, 73 percent say their child has their own car,
while another eight percent say their child shares a car with a
sibling.
- This rate of teenage car ownership is considerably higher than
what parents experienced when they were first driving (just 48
percent had their own car or shared with siblings), and also much
higher than what is expected among parents whose children do not
yet have a license (just 48 percent expect their children to have
their own car).
No Free Ride
While most parents prefer their children make a meaningful
contribution to the costs of driving, the survey shows the actions
of parents with teenage drivers demonstrates the contrary.
- As parents get closer to having a teenager with a license to
drive, they are more willing to pay for car expenses. While just 27
percent of all parents say they believe in fully paying for a car
for their child, parents with a child licensed to drive are nearly
twice as willing (46 percent). In contrast, only 10 percent of
parents whose children are under the age of 14 or whose children
don't have licenses say they plan on purchasing a car for their
child.
- Parents who say they paid for their own car when first driving
are more likely to believe in higher financial contributions from
their children.
- Among all parents, when asked what they would spend on a car
for their child, 57 percent say they would spend $5,000 or less, and 41 percent would spend more
than $5,000.
Regarding other costs associated with their children driving,
parents are most likely to say they'll pay all or most of
inspections and registration fees (51 percent), insurance (45
percent), and general car maintenance (44 percent).
- Parents are least likely to believe in paying for gasoline (17
percent would pay for all or most of it), and expenses associated
with damage caused by their child (17 percent would pay for all or
most).
Safety Before Beauty
When thinking about the type of car they'd like their children to
drive, 76 percent of parents say safety is their top priority,
followed by reliability (18 percent), affordability (five percent),
and fuel efficiency (one percent).
- Not a single parent says that appearance is their top priority
for their children's car.
Of those parents whose children have cars, the overwhelming
majority, 94 percent, say their child drives a used car with a mean
age of 9.3 years.
- This is almost the same mean age of the cars that the teens'
parents remember driving as teenagers, which was 9.2 years.
One-third of parents (33 percent) say they would not allow their
children to drive the car that they drove when first driving.
- Even one-quarter (24 percent) of parents who said they
personally started out driving a good car would not let their
children drive that car today.
On the Road Again
Parents believe getting to school (89 percent) and work (97
percent) are good reasons why teenagers should be allowed to
drive.
- They also support having their teens drive in order to lessen
the need for parents to chauffer (81 percent cite as a good
reason), and so teenagers can help run errands (88 percent).
- Parents are less enthusiastic about allowing teenagers to drive
so they can meet up with their friends (56 percent not a good
reason), and because almost every other teenager is driving (85
percent not good).
- Parents are split on allowing teenagers to drive because
there's no other way to get around (55 percent cite as a good
reason, 43 percent not good).
About the Survey
The national survey of 600 American parents with children under age
18 was conducted September 6-8, 2011
via landline telephone, and has a margin of error of +/- 4.0
percent. The survey was conducted by FTI Consulting, Inc. (FTI) for
Allstate.
About Allstate
The Allstate Corporation (NYSE: ALL) is the nation's largest
publicly held personal lines insurer known for its "You're In Good
Hands With Allstate®" slogan. Now celebrating its 80th anniversary
as an insurer, Allstate is reinventing protection and retirement to
help nearly 16 million households insure what they have today and
better prepare for tomorrow. Consumers access Allstate insurance
products (auto, home, life and retirement) and services through
Allstate agencies, independent agencies, and Allstate exclusive
financial representatives in the U.S. and Canada, as well as via www.allstate.com and
1-800 Allstate®.
SOURCE The Allstate Corporation