3 Reasons To Consider Usage-Based Insurance For Your Teen Driver

A usage-based insurance policy is something that you may now be able to take part in. This can be a great idea for people of all ages but it can be especially good for teens, though. If you have a child that will soon be driving, this is a program you should consider looking into.

What is it?

If you are unfamiliar with the term "usage-based auto insurance," you are not alone. This is a newer type of program that is better known as a device-monitoring policy. Through this program, you must have a device placed in your car that monitors the driver's habits. This monitoring device will track how quickly a person applies the brakes, how fast they accelerate, and how often they drive. It will also keep track of the mileage they put on and the times of day the person drives to and from places.

The device is typically easy to install and may only need to be plugged into a USB port or cigarette lighter. Once it is in, it will begin sending the information to the insurance company.

Why is it good for teens?

A usage-based program can be great for teens for several reasons, including to save money on insurance rates. In fact, the sole purpose of entering a usage-based program is to receive discounts for safe driving habits. If your teen drives safely, the insurance company is likely to offer you a lower rate on the policy. Without this type of policy, you may have no other ways to reduce the amount you are paying for your teen's auto insurance coverage.

As a parent, you may feel better knowing that your teen's habits will driving will all be recorded, monitored, and evaluated. This could help you feel less worried when your teen takes off to go somewhere, and your teen may even develop safer driving habits simply from knowing that everything he or she does will be recorded and monitored.

Should you get this?

Choosing a policy like this offers a lot of key benefits to you as a parent, but there are also other ways you can encourage your teen to drive safely. This may include setting strict rules or boundaries and enforcing consequences when those are not followed. Research shows, though, that these monitoring devices do improve the chances of a person having safer driving habits, and this is one key reason to consider looking into this.  

If you have questions or would like to learn more about this or other types of discounts, talk to an auto insurance company today.