Young Drivers Gamble with Road Safety

Inexperienced drivers need the protection of insurance more than any other age group – AA Insurance

Newly-licensed young drivers lack the experience needed to make good driving decisions resulting in higher insurance claims compared to older drivers. Recent AA Insurance customer data also shows that young drivers have the lowest uptake of insurance, despite requesting more quotes than other age groups.

Drivers aged between 15 and 25 were 32 percent more likely to make a collision claim than any other age group and males aged 15 to 19 tended to have the highest average claim costs. These were often more than double the average cost across all male drivers. The average cost of claims for females drivers aged 17 to 24 is $1,398, compared to $2,273 for males of the same age.

“Our claims data indicates that the highest risk period for a crash occurs in the first six months after a young driver has gained a restricted licence,” said Martin Fox, Head of Operations, AA Insurance. “This can be attributed to driver inexperience as, unlike learner drivers who have a supervising driver with them, those holding a restricted licence can face unpredictable situations while driving alone for the first time. We recommend learner drivers receive up to 120 hours of supervised driving to prepare them for the first six months on a restricted licence.”

Young drivers who are new to the road are at the greatest risk, highlighting the need for insurance. Drivers aged between 15 and 25 currently request the highest level of car insurance quotes according to AA Insurance records (up 23 percent over last year’s rates). However, young drivers have the lowest uptake of insurance of any group even though they are more likely to need to make a collision claim.

“If an uninsured young driver is responsible for an accident that causes damage to someone else’s car, they will have to pay for the repairs or even a replacement. Not having insurance could leave a young driver with a substantial, long-term debt that could have a serious financial impact on their future,” said Martin.

Insurance helped save an 18 year old AA Insurance customer from an overwhelming debt after he lost control in the wet and collided with a truck, causing substantial damage. But because the young driver was fully insured and not at fault, he only had to pay an excess of $1,300 when the total repair bill came to $123,411.

However, irresponsible behaviour that is found to be a contributing factor in an accident can invalidate a claim.

Speeding, a major contributing factor to accidents, continues to be a problem among all age groups. But the 2011 AA Insurance Drivers’ Index, a survey which polled 3,550 Kiwi drivers, showed that 42.1 percent (down 21.1 percent from 2010) of respondents aged 18-24 agreed they sped more than half of the time while driving.

This year’s results also observed a 3.1 percent increase in respondents aged 18 to 24 who agreed they had driven when they were probably over the drink drive limit. And 60 percent (down 6 percent from 2010) said they had stopped someone from driving when they felt they had had too much to drink.

One example from AA Insurance records involved a 19 year old male who lost control and damaged the vehicle after hitting a curb. When police reported alcohol and speed were contributing factors to the accident, the claim was declined leaving the young driver with a bill of $5,500.

There has been a positive change in the attitude to some irresponsible driving habits. The number of young respondents who agreed that it’s okay to drive after a few drinks as long as they feel capable fell 6.3 percent to 12.5 percent. While 7.2 percent (down 28.6 percent from 2010) of young drivers admitted that despite the law change they often send a text message while driving despite the law change.

“The majority of claims we receive from young drivers still involve situations where inexperience has lead to a poor decision. Accidents can and do happen, which is why it is so important for young drivers to be insured with a minimum of third party cover,” added Martin.

AA Insurance’s view on young driver risk is also echoed by youth charity support group Blue Light, which sees inexperience as a major factor in why young drivers are represented so highly in claim statistics. Rod Bell, Blue Light CEO, advised, “It’s important parents educate young drivers so they understand the serious financial consequences that can arise following a crash if they’re not insured.”

AA Insurance also welcomes the launch by the New Zealand Transport Agency (NZTA) of a Safer Teen Driver website (http://www.saferteendriver.co.nz) that aims to raise awareness of young driver crash risks and highlights the importance of parental supervision during the learner and restricted stages of driving.