Monday, 22 October 2007
Auto Insurance Companies Monitor Teens Driving With In-Car Video Cameras and GPS
Auto insurance companies such as Safeco, AIG, and American Family have started to offer programs to make it easy for parents to monitor their teens’ driving — with in-car video cameras and global positioning (GPS) trackers.
Safeco’s program, Teensurance, offers participating policyholders a discount of up to 15%. Auto insurers providing similar programs are also likely to discount rates, reported the Columbus Dispatch.
Such programs have caught on to help reduce traffic accidents among teens. Car-related accidents are the leading cause of teens’ deaths. Teens have a fatality rate four times higher than drivers 25 to 69 years old.
“It’s a unique opportunity for [insurers] to help change [teens’] behavior,” said Craig Weber, senior analyst for the research and consulting firm Celent.
Teen Safe Driver, the program from American Family, installs motion sensors to detect hard braking, swerving, collisions, and fast acceleration. The cameras will record video and audio of the road and teen driver, which will be sent to an analyst center. The center will grade risk and also provide parents with comments and driving tips for their teens.
“I’d rather be able to talk to [my teen] about an issue before there’s an accident,” said one participating parent.
The cost of participating in these programs can range from $14.99 to $29.99 a month, depending on the insurance company.
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