Integrated auto insurance for teens

Seattle-based insurer Safeco recently launched an insurance policy for teenage drivers: Teensurance. A combined package of insurance and a GPS tracking device (the ‘Safety Beacon’), Teensurance offers parents the ability to monitor their teenage children’s behaviour on the road. Using the Safety Beacon, parents can set how far their children are allowed to drive, at what maximum speed and what time of day. If one of the boundaries is crossed, parents immediately receive a notification by phone. Using an online interface, parents can track where their children (and cars) are, and how fast they’re driving. Teensurance also provides a Teen-Parent contract to help both parties agree on personal driving rules. Safeco claims it can’t see data that’s being collected, and won’t be able to use it if an insured party is involved in an accident. Teensurance is available to customers with Safeco auto insurance, at an introductory price of USD 14.99 per month, which includes 24/7 roadside assistance . While the ‘Big Parent is watching you’ angle may seem invasive and distrustful, the knowledge gained does provide parents with more peace of mind and with plenty of information to give inexperienced drivers useful feedback. Opinions on personal privacy aside, it’s a good example of an integrated approach to financial services, combining a somewhat abstract, ‘just-in-case’ insurance policy with a useful day-to-day tool. View ad on YouTube Spotted by: John Hildebrandt