Insurance companies more willing to take risks on young drivers

By Mike Copeland

Insurance companies used to avoid teenage drivers, fearing they would prove a costly headache with their accidents and immature driving.

But things are changing.

Insurance agents say they now are offering discounts to teenagers and other young drivers, hoping to attract their business. That’s something unheard of a few years ago.

The move comes amid greater competition among insurance companies, and at a time that young drivers are not quite the risk they once were for a variety of reasons.

Many states, including Texas, have placed restrictions on teenage drivers. Some can’t drive between the hours of midnight and 5 a.m., or they can’t have a cell phone or other mechanical device in the car. Others can’t pack their cars with other teenagers.

Some parents are getting involved. They’re investing in the latest in monitoring systems to watch their youngsters drive.

Something called the DriveCam, for example, can record what’s going on inside a car and the view outside through the windshield.

Ricky Palmer sells security and tracking systems at a Waco company called Shades Custom Tint. He offers a GPS-like vehicle tracking system called Street Eagle that monitors the location and speed of a vehicle. It even can be used to shut down a car.

These movements can be watched on the Internet by anyone with the correct log-in information, Palmer said.

“We sell these for a lot of different reasons,” Palmer said. “Some parents are looking to track kids, but most of our business involves installing the systems in fleet cars.”

Palmer said the system costs $350 plus a monthly fee that varies with usage.

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The system can greatly help the parents monitor their kids while they drive. On the other hand, for the insurance companies, this is a good opportunity to market on young drivers with the system already available in the market.