The company’s 14th Young Driver Index found 86 percent of 18-24 year-old respondents reported some form of driver distraction during the past year.
For some, the distraction is self-inflicted with 14 percent reporting they took a ‘selfie’ photograph or video and uploaded it to social media; while driving.
The Index also shows a rise in speeding and reckless driving in the 18-24 age group, and 19 percent of respondents report being in a car when the driver has momentarily fallen asleep.
"This is a disturbing trend emerging among young drivers and shows that talking and texting are only part of the problem posed by smartphones nowadays - and it needs to stop,” AAMI’s Reuben Aitchison said.
"It is, perhaps, ironic that we are employing the device at the heart of this problem to combat it."
AAMI has launched a Safe Driver app in response to the Index, which it hopes will promote safer, less-distracted habits for young drivers.
The app -which AAMI stresses is not ‘interactive’ while driving - uses satellite technology to track a journey and assess the driver’s behaviour.
A score is then generated at the end of the journey based on speed, acceleration and braking, along with phone use and breaks during long trips.
Drivers who score above 60 points will be rewarded with 12 months free roadside assistance, when they opt to insure their vehicle comprehensively with AAMI.
Mr Aitchison said the app isn’t a “cure-all” for poor behaviour among young drivers, and that AAMI believed mobile phones should be set to ‘silent’ and hidden from site before a journey begins.
The Index also found 38 percent of young drivers have experienced a collision in the last five years (the most of any age group) but 69 percent believed their most recent collision was avoidable.
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MORE News & Reviews: Young Drivers | Road Safety | AAMI