Final answer:
Youth and inexperience significantly increase the risk of crashes among drivers, making the statement true. Studies support the finding that young and inexperienced drivers are at higher risk, influencing how insurance companies classify risk groups.
Step-by-step explanation:
True, youth and inexperience are indeed two of the most important variables in determining crash risk among drivers. Various studies have shown that younger drivers, particularly teenagers, are more likely to be involved in car accidents than older drivers. Inexperience on the road leads to a lack of skills and judgement that are crucial for safe driving. The American Automobile Association indicates that driver error is a significant cause of fatal auto accidents. Additionally, research on adolescent behavior, such as the study by Thompson et al. (2007), suggests that certain risk factors like attention disorders can contribute to risky driving behavior amongst young adults.
Insurance companies often use these statistics to classify drivers into different risk groups, which can be controversial since it's not always clear if a driver who had an accident is genuinely high-risk or simply had bad luck. Challenges like moral hazard and adverse selection highlight the difficulties in using past incidents to predict future driving behavior accurately. However, despite the controversy in classification, the consensus in research shows that youth and inexperience significantly increase the risk of being involved in a crash.