Yes. Teen car insurance was expensive in 2002 and is still expensive in 2013. The realty still remains that the teen car accident rates are higher – the car insurance claims are higher, which is the reason behind the auto insurance rates are expensive.
You do not want to miss this one most important point – Teen car accidents are the highest in the first six months of driving. You need to ensure “Confidence, training and guidance” to your teen during this period.
As per recent publication from the Insurance institute “ According to the Insurance Institute for Highway Safety, the study tracked 42 newly licensed 16-year olds with cameras, sensors and computers. Of the total 40 crashes and 279 near crashes recorded by all of the drivers of the monitored vehicles (including parents) during an 18-month period, teenagers had 13.3 crashes or near crashes per 16,000 kilometers in the first six months. This fell to 8.5 in the following 12 months. The teen crash rate averaged about 10 per 16,000 kilometers during the entire18 months compared with 2 for the parents.
The National Institutes of Health and the Virginia Transportation Institute found that crashes and near crashes are more common during the first six months of independent driving among young drivers than in the following year. Previous studies had shown that teen crash rates decline quickly as young drivers become experienced, but the joint study, released in December 2011, was the first to use in-vehicle monitoring to confirm the trend.
Insurance Companies are helping you get cheaper teen car insurance rates – how?
The reality is that we are moving to a movement of co-operation from one of competition. Insurance companies are not on the other side of the fence for their clients- they are working with you, wanting the teens to be better drivers, to be safe on the road. Technology is helping us to accomplish what we never had thought possible before. It is not about spying on our teens, it is about helping the students, the teens and our beloved young drivers know their own driving habits in order to help them improve their driving.
Let us check out what the efforts are and how the companies are contributing:
1) The cost of electronics devices are subsidized by the insurance companies. This is so that parents or teenagers can get these devices and install them to monitor the teen driving.
2) Insurance companies also offer a discount to policy holder’s even teenagers for putting electronic device.
Check out what the insurance companies are offering
American Family Insurance Company has “DriveCam program”. They offered video cameras that alerted parents of their teens driving mistakes were devices were used. This was done for 2000 families.
-Cameras were free for one year. Camera offers weekly reports to parents and these are monitored and provided by independent company.
-Discount on policy holder.
21st Century (Zurich) and Safeco Insurance (Liberty Mutual) use GPS to track driving records
-GPS given for free.
- Emails or text message sent to parents if their teenagers if the limits of time, speed or boundaries are not followed.
- Safeco even allows parents to monitor their teens driving in real time
Progressive “ My Rate”
- Free black box
- Free black box given even if you do not have Progressive car insurance
- Black box records speed, braking, time of day and distance driven. Car insurance discounts given based on this.
GMAC “OnStar program”
- GPS based
- Incentives to all drivers who limit their mileage.
Imagine what it would be to see that you have both the benefits – cheap car insurance quotes and also having your teen safe! Get your quote now.
Check out” Drivecam”"
Teen auto insurance