If you will have a teen driver in your household, you are probably used to gulp-inducing insurance premiums. Based on The Zebra, automotive insurance premiums for teen drivers average $5,340 per 12 months — about thrice the speed for all drivers.
In case you’re in search of ways to cut back your premiums — and keep your teen protected — you will have considered monitoring their driving with a telematics device or app provided by the insurance company. This technology offers a gateway to what’s generally known as usage-based insurance (UBI) or telematics. UBI can reward you and your teen with lower rates if it reveals driving that’s safer than the norm – but may trigger the alternative if the info suggests a cause for concern.
Before installing an insurance monitoring device, here’s what to know.
How Driving Monitor Apps Work
Monitoring devices and apps are essentially digital parents who come along for the ride, to keep watch over the best way your teen is driving.
Although you’ll be able to install third-party monitoring devices and apps specifically designed for fogeys, these don’t offer the advantage of insurance discounts. If you need to make the most of potential discounts, you’ll have to make use of the app or device your insurer provides.
In case your insurer offers a UBI, you join for the optional program and either install a tool within the automotive or download a mobile app to your smartphone. Every time the automotive is in use, the technology monitors driving activity.
These devices and apps track the next:
- Variety of miles driven
- Time of day the vehicle is used
- Location of the vehicle
- Hard braking
- Rapid acceleration
- Hard cornering
- Cellphone usage while the automotive is in motion
- Airbag deployment
The Pros and Cons of Insurance Monitoring Devices
When considering whether to make use of insurance company-provided devices or mobile apps to watch your teen’s driving, weigh these benefits and downsides:
| Pros | Cons |
| Potential savings | Premiums may increase based on behavior |
| Parents can review driving history | Privacy concerns |
| May prevent dangerous driving behaviors |
Pros
- Potential savings: With telematics or UBI policies, you possibly can lower your expenses – no less than until the initial data is available in – only for signing up for the tracking program. But, based in your teen’s driving habits, there’s the potential for greater savings. Some insurers boast you can save 30% or more.
- Parents can review driving history: The app means that you can view your teen’s driving history and get recommendations for a way they could improve their driving. Suggestions might include decreasing rapid accelerations, braking more steadily and maintaining a protected speed.
- May prevent dangerous driving behaviors: With the potential for savings (and the knowledge that their parents and the insurer could also be reviewing their driving history) your teen driver could also be more cautious when behind the wheel. Knowing the app is there may help prevent dangerous behaviors like speeding or using the phone while driving.
Cons
- Premiums may increase based on behavior: Although you possibly can potentially lower your teen’s insurance premiums by signing up for the app, in case your teen drives aggressively, speeds or participates in other high-risk behavior, your premiums could increase.
- Privacy concerns: Despite the potential savings, consider the privacy issues. The Electronic Privacy Information Center (EPIC) recommends that buyers be cautious before signing up for telematics devices or mobile apps. Rigorously read this system terms and conditions, and review how the info is used (and shared).
“There’s all the time a risk that your data could possibly be siphoned off and made available to other firms, and we see such a gentle drumbeat of stories about data breaches,” John Davisson, senior counsel and director of litigation at EPIC said in a press release.
Examples of Apps to Monitor Your Teen’s Driving
In case you determine that monitoring your teen’s driving habits with an insurance company’s app or device is a great idea to your family, these are examples of some apps and programs available:
Lemonade Automotive
Lemonade is a tech-focused insurance company. Its insurance policies base their premiums in your driving, and its telematics app even has features like emergency crash assistance; in the event you’re in an accident, Lemonade will know straight away, and it may get you help in the event you’re unable to accomplish that yourself.
Based on the corporate, protected drivers can qualify for premiums as little as $30 monthly for liability-only coverage.
Nevertheless, it’s only available in a couple of states: Arizona, Illinois, Ohio, Oregon, Tennessee, Texas and Washington.
Progressive
Progressive’s Snapshot tool is one in every of the better-known telematics programs. The corporate claims it has issued over $1.2 billion in discounts through Snapshot.
This system uses either a mobile app or a built-in tracking device to watch driving habits. The motive force (and the parents) can review the app to see how safely the motive force is driving.
Snapshot is out there in all states, except for California.
Amica
Together with getting potential discounts on insurance, Amica’s Streetsmart mobile app allows policyholders to earn rewards that may be redeemed for e-gift cards (from Amazon, Starbucks, Goal and more) or donations to charities, just like the American Cancer Society, Habitat for Humanity and the Special Olympics.
Streetsmart is out there in 24 states: Arizona, Colorado, Connecticut, Georgia, Illinois, Indiana, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Recent Hampshire, Recent Mexico, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Vermont, Virginia and Wisconsin.
Root
Root is a tech insurance company that uses a mobile app to watch drivers. You too can use the app to file a claim in as little as three minutes and phone roadside assistance. The corporate said its best drivers save as much as $900 per 12 months through the use of the app.
Reducing Insurance Premiums for Teen Drivers
Besides monitoring devices and apps for teens, you possibly can potentially lower your expenses by bundling coverage with other types of insurance, comparable to homeowners or renters policies, or by making the most of discount programs like good student discounts. Some insurance firms also offer discounts for teens who complete approved protected driving courses.
Rates can vary substantially by insurer, so request quotes from several firms to seek out the most effective rates to your teen driver.