Talking to Your Teen Driver About Usage-Based Insurance

Is your teenager ready to hit the road? As a parent, you may be feeling a little worried about your newly licensed teen getting behind the wheel. To have some peace of mind, you may be considering a usage-based insurance (UBI) program that can monitor your teen’s safe driving habits. Here’s what to know. 

Why You Should Consider Tracking Your Teen Driver 

UBI programs are becoming increasingly popular with almost 50% of parents of new teen drivers using a tracking app to watch their driving habits. Tracking your teen driver with a UBI program can be a smart move for both safety and financial reasons. UBI programs monitor driving behaviors such as speeding, hard braking, phone use, rapid acceleration, and can also allow parents to see location. This kind of tracking encourages teenagers to develop safer driving habits, knowing their actions are being recorded. 

Tracking a teen driver through a UBI program can also offer peace of mind to parents. Not only can you see real-time data of your teen’s driving habits and history, but you can also receive safety alerts. Some programs include crash detection or roadside assistance, which can be valuable in emergencies. 

Additionally, it’s possible that having your teen enrolled in a safe driving program can lead to a lower insurance premium or insurance discounts. Due to inexperience and risk-taking behaviors, insurance premiums are often higher for teens because they are statistically more likely to get in an accident. By enrolling your teen in a UBI program, you may get rewarded for safe driving habits with a decrease in your premium. Most importantly, participation in a UBI program will not cause an increase in premium.

What Is Usage-Based Insurance?

As many parents know, adding a teen driver to your policy can cause a jump in the cost of your insurance premiums. Your rates could possibly double or triple, but there are ways to save. Usage-based insurance is a way to rate auto insurance that’s based on your driving. If you’re a safe driver, UBI could save you money on your premiums. 

UBI often tracks your speed, braking and acceleration, cell phone use and even your mileage and the times of day you drive. With a UBI program, you will often receive a score so you can improve your habits which will eventually lead to more savings! 

At Farm Bureau, we offer clients the option to use our safe driving program called Driveology. It uses an app and a windshield tag to monitor your driving habits. Just for signing up, Driveology saves clients 10% on their auto insurance, and Driveology users save an average of $321 on their insurance premium.

Talking to Your Teen About Usage-Based Insurance 

Having a conversation with your teen about UBI is a great opportunity to talk about safe driving. As a parent, you aren’t trying to invade their privacy, but you want to know they are building good driving habits, staying safe on the road and even save money on their insurance. 

Tracking teenage drivers is a good way to hold them accountable behind the wheel and help them understand that driving is a big responsibility. Not only is their life in their hands, but they also need to consider how their driving will impact others on the road. Monitoring their driving is just one way to support them as the gain experience. 

Keep Your Teen Driver Safe

Your teen’s safety on the road is one of the top priorities for parents, and a UBI program can help protect them. Reach out to Farm Bureau today to ensure your teen is covered on your auto insurance policy and learn more about your safe driving program options.