According to the new DriveCheck assessment recently released by the National Association of Insurance Commissioners (NAIC), the percentage of Americans aged 16-44 years old with a driver’s license has decreased steadily since 1983, with more people relying on public transportation in recent years.
In 2014, 69 percent of 19-year-olds had a driver’s license, compared with almost 90 percent in 1983. Drivers cite insurance costs and alternate options – such as ridesharing services – as key factors when deciding not to drive.
“Exciting transformations in mobility, including ridesharing, increased use of public transportation and self-driving vehicles mean consumer driving habits are and will continue to change,” NAIC President and Wisconsin Insurance Commissioner Ted Nickel said. “New insurance products may be an option for some drivers whose habits have shifted. That’s why the NAIC created DriveCheck. The simple online assessment helps consumers understand how [usage-based insurance] works and determine if it’s a good fit for their driving behaviors.”
Usage-based insurance (UBI) examines driving habits, such as miles driven, speed, and time of day, to determine insurance costs for drivers who are looking to re-evaluate their auto insurance needs and options. According to the NAIC, less than half of Americans are aware of UBI options and only 6 percent are using the option. When offered as a product, half of American drivers made aware of the option make the switch.