Insurance companies more willing to take risks on young drivers

By Mike Copeland

State Farm, the nation’s largest automobile insurer, has been offering discounts up to 15 percent for drivers under age 25 in most states who take part in its “Steer Clear” safety program that involves keeping a log of driving habits.

“We try to make the program available to everybody we can get a hold of,” said Blake Harrell, a local State Farm agent. Harrell said insurance companies indeed are stepping up efforts to get young customers.

“People want future clients,” he said. “If Mom and Dad die and Junior is not already on the books, he will go somewhere else. We’ll take losses with the idea of getting future clients.”

Harrell said the log that drivers keep poses questions they must answer after taking trips. They may have to comment on whether they were distracted at any time during the drive, how many passengers they were carrying or whether they used a cell phone.

State Farm also offers a driver’s training discount of 10 percent and a good student discount of 15 percent.

A company called Safeco has rolled out its “Teensurance” program for drivers typically up to age 25. It offers as much as a 15 percent discount for participants who pay $15 a month for a satellite-tracking service that traces young drivers. Safeco pays for the equipment.

“We think it’s a great idea. It just hasn’t taken off in Texas, possibly because they haven’t pushed it very hard here,” said Don McKinney at Brazos Valley Insurance Agency in Waco.

He offers Safeco products, including “Teensurance.”

A company called Fireman’s Fund has a “Youthful Driver” program for young adult drivers, and it is available in Texas.

It allows young adults to qualify for their parents’ discounts and credits until they reach their 27th birthday. By that time, if they have kept their record clean, their premiums should decline.

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