Parents often wonder why it is so difficult and expensive to insure their children when they first get their drivers licenses. Despite making up only 5% of all licensed U.S. drivers in 2021, drivers aged 15 to 20 accounted for 8.4% of fatal traffic crashes.

The Wall Street Journal reported that Children’s Hospital of Philadelphia developed a virtual driving assessment, a car simulator that predicts crash risk in newly licensed drivers. This is particularly relevant as vehicle crashes are the leading cause of death for U.S. teens.

The test simulates a 15-minute drive through a city with various challenging scenarios. Using eye-tracking software, it assesses the driver’s reactions and focus. Early studies in Ohio involving nearly 17,000 young drivers showed that those who performed well in the test had a 10% lower-than-average crash risk.

Insurance companies can use this development to promote road safety and teen health, possibly offering incentives for teens who participate or show improvement. This aligns with the industry’s trend towards preventative measures and risk reduction. Marketing this technology emphasizes its benefits not just for insurance costs, but crucially for enhancing the safety of young drivers.

To Read More (may require a subscription): WSJ 1/16/2024