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We examine the effects of policies aimed at restricting the use of false identification to purchase alcohol on traffic fatalities involving alcohol‐impaired underage drivers. We find that the implementation of policies that incentivize alcohol retailers to adopt ID scanners reduces traffic fatalities from accidents involving 16–18 year old drivers with a BAC >0, but we do not find that similar policies like vertical ID laws lead to statistically significant changes in traffic fatalities involving underage impaired drivers. A back‐of‐the‐envelope calculation suggests that if all remaining states passed ID scanner laws, the reduction in underage alcohol‐related fatal accidents would generate over $400 million in annual economic benefits.