Teen Drivers Back 'In The Saddle' With Economy On Mend

After a lengthy stretch of declines in the youth driving population, it appears that teenagers are getting back behind the wheel - and the revived economy may be the biggest reason why, according to a newly released survey from the Insurance Institute for Highway Safety.

During the Great Recession, which the National Bureau of Economic Research says stretched from early 2008 to June 2009, teenage driving fell rather precipitously, in line with diminished job creation amongst employers, IIHS discovered from its study. Though the teen driver drop-off stretched back to 2006, the decrease was more significant during the period the economy was officially in recession mode.

Ratio of teen to prime-age drivers up
By the time 2013 arrived, though, things turned around - both for America’s financial situation as well as teenagers getting back in the driver’s seat. Specifically, the ratio of teen drivers to prime-age drivers increased to 0.041 in 2014, from 0.038 in 2010.

Matt Moore, vice president of the Highway Loss Data Institute, noted that the outsized impact of the recession on teens - i.e. the youth unemployment rate was in excess of 10% for a period - was expressed in the nation’s driver population.

“It seems like many teens really do want to drive after all, and much of the earlier decline in driving was due to the disproportionate effect of the economy on teen employment,” Moore explained. “When teenagers have jobs, they have more of a need to drive, along with money to help pay for it.”

Crash deaths often higher when economy is strong
At the same time, a humming economy can have its consequences, IIHS found in a separate study performed late last year. Through the first six months of 2015, crash deaths rose 8% - the largest increase since 2008, according to the National Highway Traffic Safety Administration. IIHS discovered that the uptick in highway fatalities mirrored previous instances where accidents increased at times corresponding with economic improvements. Similar instances happened in the early 1980s and 1990s. The government study attributed the rise to more people being on the roads.

Regardless of how the national economic picture looks at any given time, auto insurance can protect your personal economy by helping to cover repair costs that stem from an accident. To buy the policy that’s best for you, visit The Insurance Centers site or contact Zita Santos-Martinez at 732-832-4132

Photo and article courtesy of Selective Insurance Group