Final answer:
The groups most at risk of injuries or fatalities in car accidents are young children, adolescents, especially teens, and the elderly. Adolescents face high risks due to inexperience and less frequent use of safety measures. Insurance companies may categorize previously involved drivers as high-risk, resulting in higher premiums.
Step-by-step explanation:
The groups most at risk of being injured or killed in motor vehicle crashes are young children (ages 0-4 years), adolescents (15-19 years), and the elderly (over 65 years). Especially concerning are adolescents, where the combination of inexperience, risk-taking behavior, and greater likelihood for not using safety measures such as seat belts contribute to higher fatality rates. Teen drivers are at a particularly high risk, with data from the U.S. Census Bureau highlighting the severity of motor vehicle injuries within this age group.
When it comes to the assessment for insurance risk, drivers who have been involved in previous accidents might be considered as high-risk by insurance companies based on the assumption that having a major accident signals a higher likelihood of future incidents. Moral hazard and adverse selection are two problems that the insurance industry faces, stemming from the categorization into risk groups, due to imperfect information.