Insurance Company Offers Discounts to Tracked Teens

by John Gartner
Wired News
Apr. 10, 2007

Big brother can help you save money on your car insurance. Parents who are willing to install a GPS device to track their teenage drivers will get discounted insurance rates.

The AIG Teen GPS Program is a trial program in Arizona, Illinois, New Jersey, Pennsylvania, South Carolina and Washington, that tracks the speed limit and location of teenagers. If teens go too fast or too far, mommy and daddy will receive a text message or email letting them know.

Teenagers are more likely to die from a car accident than anything else, so insurers are trying anything to improve driving behaviors. For parents, installing a GPS provides some peace of mind, but the ill-will from teens will be substantial.

My son is years from being of driving age, but I would have to consider this even if I trust him. Since 1 in 8 teen drivers has an accident each year, it is hard not to at least consider every option. Would you do it if it reduced your premium substantially?

Source: Telematics Journal