Foster youth can pay 40% more for car insurance. A proposed fund could help with the costs

Indiana lawmakers are considering a bill that could help older foster youth cover the cost of car insurance.

Senate Bill 246 would, in part, create the Insuring Foster Youth Trust Fund, which would use public and private dollars to help older youth in the state’s foster care system cover the cost of their car insurance. The bill would also offset the cost of hiring a certified driving instructor to help the youth complete their 50 state-mandated hours of practice behind the wheel.

Not having car insurance or a license can be a barrier to self-sufficiency for these youth, according to Maggie Stevens, president and CEO of Foster Success, a nonprofit supporting the bill.

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“Indiana – even if you’re in Indianapolis – we are a state where you need a vehicle,” she said.

System-impacted youth can pay up to 40% more for auto insurance than their non-foster-care counterparts, she said. Placements with foster families can be short and inconsistent, and these youth aren't otherwise likely to have an older adult who will add them to their existing plan.

“We know that — especially for young people under 18 — when they don’t have a plan they’re signing onto with a parent as a minor, they have a hard time getting insured," she said. "And then if you’re over 18, they still sometimes have challenges getting a policy as an independent young person who may or may not have somebody to vouch for them."

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The fund could be supported by state appropriations, federal dollars, private contributions and, eventually, a license plate that would generate revenue to support the fund, Stevens said. These dollars wouldn’t completely cover the cost of insurance, she cautioned, but it would level the playing field between youth in and out of the welfare system.

“These young people are in the custody of the state,” Stevens said. “When the state brings them into foster care, they are making a statement, a choice, that they are better providers for this young person than their family. To me, that includes helping them attain self-sufficiency.”

Sen. Kyle Walker, R-Lawrence, who carried the bill, told members of the House Ways and Means Committee during a Thursday hearing that alleviating these barriers and increasing access to work and educational opportunities sets these youth on a path to becoming a key part of the state's workforce.

“I think we can all agree that we want foster youth to be independent and productive Hoosiers,” Walker said.

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Walker noted that, despite the legislature’s moves in 2017 to make driver's licenses easier for foster youth to obtain, there hasn’t been a significant rise in the number of these youth getting their licenses. The significant barrier, he said, is insurance.

SB 246 would make foster youth eligible for the Indiana Automobile Insurance Program, a state-administered program that covers “high-risk” drivers who have previously been turned down for coverage by several other plans.

“By adding foster youth to this plan — who are high-risk because of their age, but by no other reasons on its face — we can help close the gap of availability and potentially lowering the cost, also,” Walker testified.

An amendment to the bill has moved administration of the fund from a separate board to the Department of Child Services. When reached for comment, a spokesperson for the agency declined to comment, deferring to recent testimony from Will Young, the agency's legislative director. Young told the Ways and Means Committee on Thursday that the agency appreciated the "innovative" measures to address the needs of these youth.

The bill passed the committee unanimously on Thursday and will go to the House floor.

You can reach IndyStar reporter Holly Hays at holly.hays@indystar.com. Follow her on Twitter: @hollyvhays.

This article originally appeared on Indianapolis Star: Car insurance for foster youth could be easier under Indiana bill