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 and ability
to react or respond in potential crash situations.
Elderly drivers With the aging of the US population, there’s
increasing attention to the risk of crashes among the elderly.
In fact, drivers 80 years
or older have a higher crash death rate per miles driven than any
other group except teens.
Drivers over the age of 65 are almost
twice (1.78 times) as likely to die in car crashes as drivers age
55–64, according to
a February 2004 study by the AAA Foundation for Traffic Safety.
The study found that the probability of death or injury in car
crashes increase with age, as does the likelihood that an older
driver will be involved in a left-turn crash, be affected by illness,
or suffer from lapses in perception that could contribute to a
crash.
Researchers at the University of Baltimore and John Hopkins
University recommend state-mandated vision tests for older drivers
as an effective
tool in reducing crash risk. The researchers analyzed fatal crashes
from the National Highway Traffic Safety Administration (NHTSA)
that involved at least one driver age 70 or older. As of February
2004, at least 15 states require more frequent testing for older
drivers at license renewal. Drivers over the age 75 in Illinois
and New Hampshire must take road tests upon license renewal;
Indiana requires both written and road testing in addition to vision
testing.
Ohio does not currently require special testing for senior drivers
upon renewal, but requires vision testing for all drivers upon
license renewal.
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In 2003 there were 19,300 licensed drivers
in Ohio between the ages of 90–100. In 2004, there were
20,951 licensees.
(Ohio Bureau of Motor Vehicles) |
Source: Insurance Institute for Highway Safety, Fatality Facts
2002 and 2003
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Motor-vehicle deaths trend upward beginning
at age 65. In 2003, drivers 70 and older accounted for 12%
of all traffic fatalities, 12% of vehicle occupant fatalities
and 16% of pedestrian fatalities, according to the NHTSA.
(US Department of Transportation, National Highway Traffic
Safety Administration) |
Source: Ohio Department of Public Safety, June
2005
US senior driver statistics
- 5,309 people 70 years and older died in motor vehicle
crashes in 2003. 81% of motor vehicle crash deaths in 2003 involving
older people were passenger vehicle occupants, and 15% were pedestrians.
These figures are 10% fewer than in 1997 when deaths peaked,
but a 41% increase since 1975. 6,622 people (65 years and older)
died in motor vehicle crashes in 2002.
- In 2002 and 2003, about
half of the fatal crashes involving drivers 80 years or older
occur at intersections and involve multiple
vehicles,
compared with 24% among drivers up to age 65.
- In 2003, people 70
years and older had higher pedestrian death rates per 100,000
people than younger people. Men at age 80 years
or older had a rate nearly 3 times higher than pedestrians 79 years
and younger and at least twice as high as female pedestrians of
their own age.
- People 70 years and older represented 10% of the
licensed age population in 2003 and were 10% of the drivers
of passenger vehicles involved
in fatal crashes. By 2030, people 70 years and older are expected
to represent 18% of the licensed age population and 19% of the
drivers of passenger vehicles involved in fatal crashes.
Ohio senior driver statistics
- In 2004, 10.2% of Ohio’s licensed drivers were
age 71 or older, for a total of 804,435 older drivers. In 2003,
there were 787,947 drivers in this age group representing 10%
of Ohio licensed drivers.
- In 2004, 152 of those who died in crashes
were over the age of 70 (147 in 2003). 96 were drivers, 36 were
passengers
and 20
were pedestrians. 6,718 injuries for this age group were reported
in 2004 (6,601 in 2003).
- Ohioans over age 70 represented 11.8%
of all crash fatalities (152 of 1,285) in 2004 and 11.5% (147
of 1,278) in 2003.
- In 2004, those over the age of 70 accounted
for 4.8% of Ohio’s
crash injuries compared to 4.7% in 2003.
- 91 men over age 70 died
in crashes in 2004, comprising 11.1% of Ohio’s male crash
fatalities. 61 females in that age group died in crashes, which
is 16.1% of all female crash fatalities.
Source: Insurance Institute for Highway Safety, Fatality Facts
2003
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.
The reason is based on the likelihood of teen involvement
in crashes. In 2003, teenagers accounted for 10% of the US driving
population,
but were involved in 13% 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.
A
study released by the Insurance Institute for Highway Safety in
February 2005 found that the fatal crash rate for 16-year-old
drivers declined sharply after states began enacting graduated
licensing laws in the 1990s. Fatal crash involvements based on
the population of 16 year-olds fell 26% between 1993–2003.
The overall number of 16-year-old drivers in fatal crashes decreased
from 1,084 in 1993 to 938 in 2003, while during the same period
there was an 18% increase in the 16-year-old population.
Another important finding of this study is that restrictions on
16 year-olds did not shift the crash risk to older teens. Crash
rates dropped 11% for 17 year-olds and 6% for 18-19 year-olds.
One of the most dangerous scenarios, according to IIHS, is when
a teenage driver transports other teens, although on a per capita
basis, this kind of crash declined 39% during 1993-2003.
A previous
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.
US young driver statistics
- 5,691 teenagers ages 13-19 died in motor vehicle crashes
in 2003. This is 35% fewer than in 1975, and about 5% fewer
than in 2002 (5,954).
- In 2003, population-based driver death
rates peaked at ages 18 and 19 for males (26 per 100,000
people) and at
age 18 for
females (12 per 100,000). Death rates among passengers peaked
at ages 17 and 18 for males (13 per 100,000) and at age 17
for females (9 per 100,000). Motor vehicle death rates per
100,000 peaked at age 19 for drivers and at age 18 for passengers
in 2002.
- In 2001, motor vehicle crashes were the leading cause
of death among 13-19 year old males and females in the US. 36%
of
deaths of 13-19 year olds occurred in motor vehicle crashes. 41% of
13-19 year old female deaths and 34% of 13-19 year old male
deaths resulted from a crash. This is the latest year for
which this information is available.
- About two out of every three teenagers killed
in crashes in both 2002 and 2003 were males.
- Since 1975, teenage
motor vehicle crash deaths have decreased more among males (43%)
than among females (13%).
- 54% of all teen motor vehicle deaths
in 2003 occurred on weekends (Friday–Sunday). 42% of teenage
motor vehicle crash deaths in 2003 occurred between 9 pm and
6 am. In 2002, 52%
of all
teen motor vehicle deaths in 2002 occurred on weekends.
- 54%
of teenage passenger vehicle occupant deaths in 2003 were drivers
and 46% were passengers. 55% of teenage passenger
vehicle occupant deaths in 2002 were drivers and 45% were passengers.
- 59% of teenage
passenger deaths in 2003 occurred in vehicles driven by another
teenager. Among deaths of passengers of
all ages, 20% occurred when a teenager was driving. 61% of teenage
passenger deaths in 2002 occurred in crashes in which another
teen was driving.
Ohio young driver statistics
- In 2004, there were 546,657 licensed drivers ages 16–20,
representing 6.9% of all Ohio drivers. Their high crash rate
of 1 for every 5.5 drivers is surpassed only by Ohio’s
group of drivers under age 16. Of the 6,598 Ohio drivers under
16, there was a crash for every 2.5 drivers. In 2003 there were
551,514 drivers in this age group, representing 7% of all Ohio
drivers. Their crash rate was 1 for every 5.4 drivers. Of the
8,789 drivers under age 16 in 1003, 1 in 3.1 were involved in
a crash.
- More drivers age 16-20 were found at-fault (in error)
than drivers in any other age group in both 2003 and 2004. In
2003, 64,224
drivers (20%) of the 321,321 drivers at-fault were ages 16–20.
In 2004, they represented 62,117 of Ohio’s 314,709 drivers-in-error
or about 20%.
- In 2004, Ohio drivers ages 16–20 represented
15.5% of all drivers in crashes. Drivers in this age group were
involved in
more fatal and injury-causing crashes than any other age group
in both 2003 and 2004. In 2003, drivers ages 16–20 represented
15.8% of all drivers in crashes.
- 205 young drivers and passengers
ages 16–20 died in traffic
crashes in 2004. 119 were drivers, 75 were passengers and 11
were pedestrians. This compares to 201 fatalities in 2003: 125
drivers, 68 passengers and 8 pedestrians.
- Of the 205 Ohio teens
ages 16–20 who died in crashes in
2004, 80 were alcohol-related. In 2003 there were 61 alcohol-related
fatalities.
- In 2004, 151 males ages 16–20 died in crashes,
which is 16.7% of all male crash fatalities. 54 females in this
age group
died, which is 14.2% of all females who died in crashes. There
were more fatalities and injuries among males and females ages
16–20 than any other age group. In 2003 there were 132
male and 69 female fatalities.
Sources: US information—Insurance
Institute for Highway Safety; Ohio information—Ohio Department
of Public Safety Ohio Crash Facts 2003 and 2004 editions
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Percentage of high schoolers who say they
rarely or never buckle up when riding in someone else’s
car:
Female
14.6%
Male 21.5%
(2003 Youth Risk Behavior Survey,
Centers for Disease Control and Prevention from USA
Today, 1/13/05)
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*Total includes gender unknowns
Source: Insurance Institute for Highway Safety, Fatality Facts 2003
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Ohio and Kentucky had a total of 439 fatal
wrecks with teens behind the wheel in 2002. Nationally, wrecks
caused by teen drivers cost $42.3 billion annually.
(Cincinnati Enquirer, 3/20/04)
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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. Three or more passengers triple their risk of becoming
a crash fatality.
According to NHTSA, among the 8,572 teen drivers
involved in fatal crashes in 2002, 38% had at least one speeding
conviction or other
moving violation.
Although speeding is a problem among all driver
age groups, the crashes and violations of young drivers are much
more likely to
be related to speed than is the case for drivers of other ages.
In an earlier study, NHTSA found that the relative proportion of
speed-related fatal crashes decreases with increasing driver age.
About 37% of all drivers ages 14–19 involved in fatal crashes
were in speed-related crashes. In comparison, the percentage among
drivers 70 and older was 7%. At all ages, male drivers are more
likely than female drivers to be involved in speed-related fatal
crashes.
Adding a teenage driver to a policy can at least double
a family’s
auto insurance premium. To help with insurance premiums, consider
these measures:
- Add young drivers and/or their cars 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 young driver’s use of cars, closely
supervising all aspects of its operation. Night driving restrictions
are strongly recommended.
- Work out expense sharing so that teen
drivers understand and respect the costs of owning and/or operating
a vehicle.
- Ohio’s graduated licensing law requires new drivers
under age 18 to take an approved driver training course. (Click
here for more information.) Some insurers recognize that driver training
creates safer drivers, so ask if driving training program discounts
apply.
- Consider higher auto liability insurance limits, especially
beyond Ohio’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. 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 that are permitted to ride with
your teen.
- 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.
- Set ground rules regarding cell phone
usage and emphasize the importance of driving without such
distractions. The dangers of cell phone
use and text messaging are two major distractions that have
both received media focus in recent times.
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Perception vs. reality:
Percentage of parents who think their child always buckles
up: 82%
Percentage of children who say they do: 70%
Percentage of parents
who think their child always sits in the back seat: 80%
Percentage of children who say they do: 43%
(Prevention Magazine and the University of Michigan Health
System, from USA Today, 11/30/04)
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