Factors That Affect Auto Insurance: Age And Its Impact

Age is a key variable in determining auto insurance premiums, because it likely implies your level of driving experience. With fewer years of driving experience comes a greater chance that your auto premiums will reflect this. After age 30 the effect diminishes.

Elderly drivers

With the aging of the US population, there’s increasing attention to the risk of crashes among the elderly. In fact, older drivers have a higher crash death rate per miles driven than any other group except teens.

Senior drivers sometimes have difficulty navigating complex traffic situations. Multiple vehicle crashes at intersections increase markedly with age. Elderly drivers are more likely to get ticketed for failing to yield, turning improperly and running stop signs and red lights than other age groups too.

Source: Insurance Institute for Highway Safety, Fatality Facts 2001

1999–2000 US senior driver statistics

• 6,643 people (65 years and older) died in motor vehicle crashes in 2000, a 7% drop compared to 1999 but 25% more than in 1975. 81% of elderly fatalities were passenger vehicle occupants; 15% were pedestrians.
• In 2000, about half of the fatal crashes involving drivers 80 years and older occur at intersections and involve multiple vehicles, compared with less than 30% among drivers up to age 65.
• Per mile driven, drivers 75 years and older have higher fatal crash rates than drivers in other age group except teens.
• Per licensed driver, fatal crash rates rise sharply at age 70 and older.
• At age 80 years and older, the pedestrian death rate per 100,000 among men is nearly three times as high as younger pedestrians.
• People 65 years and older represented about 16% of the population and about 14% of all motor vehicle deaths in 1999. By 2030, seniors are expected to represent 25% of the driving population.

2000 Ohio senior driver statistics

• In 2000, 10.5% of Ohio’s licensed drivers were age 70 or older, for a total of 833,225 senior drivers.
• In 2000, 241 of those who died in crashes were over the age of 60 (253 in 1999). 187 were drivers, 48 were passengers and 6 were pedestrians. 15,567 injuries for this age group were reported in 2000 (19,601 in 1999).
• Those 76 and over represented 7.6% of all crash fatalities—104 of 1,361.
• In 2000, those 76 and over accounted for 4,543 of the 166,788 crash injuries.
• 138 men over the age of 60 died in crashes in 2000, comprising over 15% of Ohio’s male crash fatalities. 102 females in that age group died in crashes, which is nearly 23% of all female crash fatalities.

Sources: US information—Insurance Institute for Highway Safety, Ohio information—Ohio Department of Public Safety

Source: Ohio Department of Public Safety

Teenage and youthful drivers

Even before reaching driving age, most teens catch car fever. But when it comes to purchasing auto insurance, a sudden case of “premium sticker shock” is likely to set in. So why do youthful drivers have higher premiums?

The answer is based on the likelihood of teen involvement in crashes. In 2000, teenagers accounted for 10% of the US driving population, but were involved in 14% of all motor vehicle deaths. Crashes are the leading cause of teen deaths.

Teens drive less than all age groups but the oldest drivers, but their numbers of crashes and crash deaths are disproportionately high. The risk of crash involvement per mile driven among drivers 16–19 years old is four times greater than older drivers.

An IIHS study released in early 2002 finds that although 16 year-old boys are still the road’s riskiest drivers, girls are catching up. For every 1,000 licensed 16 year-old girls, 175 were involved in crashes in 2000, up 9% from 1990 when the ratio was 160 crashes per 1,000 young female drivers.

Girls ages 16–19 are driving 70% more than in 1975, averaging 6,870 miles annually. Teenage boys are driving 16% more, averaging 8,200 miles a year.

1999–2000 US young driver statistics

• 5,648 teens died in motor vehicle crashes in 2000, compared to 5,749 in 1999, and 35% fewer than in 1975.
• Motor vehicle death rates per 100,000 peaked at ages 18–19 for drivers and at age 17–18 for passengers.
• In 1999, 39% of the deaths of 16–19 year-olds from all causes were from crashes.
• About two out of every three teenagers killed in crashes were males.
• Male teenage drivers have higher death rates than their female counterparts—21 per 100,000 people, compared to 10 per 100,000 for females. Since 1975, teen motor vehicle deaths have decreased 43% among males, compared to only 9% among females.
• 54% of all teenage motor vehicle deaths occur on weekends (Fri.–Sun.). 41% of all teenage motor vehicle deaths occur between 9 pm and 6 am.
• About 53% of teenage passenger vehicle occupant deaths were drivers and 45% were passengers.
• 63% of teenage passenger deaths occurred in crashes in which another teen was driving. Among people of all ages, 20% of passenger deaths occurred when a teenager was driving.

2000 Ohio young driver statistics

• In 2000, there were 582,588 licensed drivers ages 16–20, representing 7.3% of all Ohio drivers. There were 12,379 licensed drivers under the age of 16.
• In 2000 this age group represented 16.7% of all drivers in crashes and 14.8% of all drivers in fatal crashes. This group had the highest percentage of at-fault crashes at 10%. Young drivers were involved in 14.8% of Ohio’s fatal crashes and represented 17.4% of all drivers in crashes causing injuries.
• A total of 207 teenagers ages 16–20 died in traffic crashes in 2000. Of these, 140 were drivers, 63 were passengers and 4 were pedestrians. This compares to 244 fatalities in 1999, and 214 in this age group in 1998.
• Of the 207 teens ages 16–20 who died in crashes, 54 or 15.4% were alcohol-related. In 1999 there were 51 alcohol-related fatalities in this age group.
• 139 males ages 16–20 died in crashes, which is 15.4% of all male crash fatalities. 68 females in this age group died, which is 15% of all females who died in crashes. There were more fatalities among males and females ages 16–20 than any other age group.

Sources: US information—Insurance Institute for Highway Safety, Ohio information—Ohio Department of Public Safety

Source: Insurance Institute for Highway Safety, Fatality Facts 2001

Safety measures for youth

Young drivers should be the best drivers on the road. With superior reflexes, they have the ability to react to driving emergencies more quickly than their elderly counterparts. But, immaturity and lack of judgment and driving experience may override such pluses.

A study released in 2000 supports the risky behavior aspects of younger drivers. Upon analyzing data on fatal crashes, researchers at John Hopkins University found that 16-year-old drivers face a 39% higher risk of dying behind the wheel with the addition of one young passenger. That increases to 86% with two passengers and 182% with three or more. 17-year-old drivers face even higher risk rates, with three or more passengers tripling their risk of becoming a crash fatality.

Adding a teenage driver to a policy can easily double a family’s auto insurance premium. To help keep insurance premiums down, here are a few measures that young drivers and their parents can take.

• It’s usually cheaper to add young drivers and/or their vehicles to the family’s auto insurance policy rather than purchasing a separate one. But, family assets may be open to lawsuits if your young driver is causes a crash with losses higher than your policy limits.
• Parents should restrict the use of the automobile by youngsters, closely supervising all aspects of its operation. This should include restrictions on nighttime driving.
• Work out expense sharing so that teen drivers understand and respect the costs of owning and/or operating a vehicle. This includes paying for gasoline and/or part of the insurance premium.
• Ohio’s graduated licensing law requires new drivers under age 18 to take an approved driver training course and to verify completion of 50 hours of driving with a parent or guardian, including 10 hours of nighttime driving, (Click here for more information on Ohio's graduated licensing law.) Most insurers recognize that driver training creates safer drivers, so ask if any discounts apply upon completion of driver and parental training.
• Consider higher auto liability insurance limits, especially beyond the state’s minimum limits. To help defray the additional premium, consider higher deductibles or paying for minor fender benders out of pocket.
• Ask about young driver discounts, such as maintaining a B average or higher. Some insurers provide an added incentive by knocking 5–30% off premiums. Also, if your student keeps the vehicle away at school, it may be in a lower risk location, meaning a slight reduction in premiums.
• Parents should set a good example by always buckling up, not speeding, not using cell phones while driving and avoiding other risks behind the wheel.
• Limit the number of passengers when your teen drives, never going over the number of safety belts.
• If purchasing a vehicle for a teen, choose an intermediate size car or sedan. Avoid high performance vehicles such as sports cars, SUVs or pickup trucks. Small, sporty vehicles usually carry higher insurance premiums and have higher death and theft rates.
• Emphasize to teen drivers that traffic tickets and at-fault accidents will cause premiums to rise.

Source: Insurance Institute for Highway Safety, Fatality Facts 2001

A lack of driving experience is one of many factors that contribute to fatal crashes among teens. Others include: passenger distraction, alcohol and drugs, cell phones, loud music and speeding. (Columbus Dispatch, 5/13/01)