Author Affiliation: RAND Corporation, Santa Monica, California.
In many states, teenagers can apply for a driver's license when they are 16 years old. To obtain the license, they need to pass a written examination, perform adequately on a driving test, and demonstrate that they have insurance. But all drivers can do things to lose their license. For example, the law requires that drivers stop at red lights, even in the middle of the night when the street is empty. If drivers choose to ignore this law, they risk being ticketed; enough tickets will probably cost them the right to drive. These requirements are not arbitrary; they were developed to preserve life and reduce the cost of everyone's insurance.
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