Save on teen driver auto insurance with in-car monitoring devices
Considering that traffic accidents are the leading cause of death among teenagers 16 to 19, it’s no wonder auto insurance companies charge families a high premium for teen driver coverage. However, devices that monitor teenage driving habits can lead to lower insurance rates and a great deal less heartache for worried parents.
Risk equals higher premiums
Any auto insurance underwriter will tell you that teenage drivers’ high rate of accidents, due to lack of experience and ease of distraction, is what makes their insurance rates so high. With a monitoring device in place, parents can be notified of their teen’s location and potentially dangerous driving practices and counsel their teen drivers accordingly.
The cost of a monitoring device
Devices of this nature typically cost between $150 and $250 initially, sometimes with a monthly subscription fee added on. Unlike smartphone GPS services, these monitoring devices are installed directly into a vehicle and automatically transmit when the car’s engine is running. They and hard-wired directly into the car’s diagnostic computer. This fail-safe works better than smartphones that must be enabled and can be disabled.
Teenager driver monitoring devices monitor speed and location of the vehicle. Depending upon the device, this data is either stored in the device for later viewing or is transmitted in real time to a Web-based interface that parents can monitor. Email and text alerts can also be sent. Warnings are sent when a set speed limit is exceeded by a certain amount, or when the vehicle leaves pre-defined geographic boundaries.
What teen driver devices do to auto insurance rates
Most auto insurance companies recognize teenage driver monitoring devices under the category of safety devices. As such, insurers are generally willing to offer policyholders discounts if they have permanently installed devices, because they are considered anti-theft tracking devices. Auto insurance policy discounts ranging from five to 33 percent are not uncommon.
Track your teen with iTeen365
One example of a teenage driver monitoring device is the GPS device iTeen365. Created by the company iTrack365, iTeen365 is available with a two-year service agreement ($34.95 monthly) and a one-time activation fee of $50.
“As parents ourselves, we were concerned when we read the new study by the Governor’s Highway Safety Association (on teen auto accidents),” said Joe McBreen, CEO of iTrack365. “We want to arm parents with the information they need to help their teens make better driving decisions. Now that the product is available for free, there really is no reason why every teen’s car shouldn’t be equipped with iTeen365.”
Safer teen drivers, lower auto insurance rates