“Beyond its tangible benefits, Teensurance enhances the most important parenting tool: communication. By using this safety program, parents and their teens are encouraged to enter into an ongoing dialogue about good driving habits,” the company added.

According to Safeco, parents and their teens can agree on speed, distance, location and curfew limitations. Notification is transmitted in real time to parents' computers, home phones, cell phones or other mobile devices when agreed-upon limits are exceeded.

Teens, meanwhile, get 24/7 roadside assistance and, if they lock their keys in the car (and it has automatic door locks), they can use their mobile phones to remotely unlock the vehicle, the company noted. “Most importantly, teens can prove to their parents they drive responsibly and gain additional driving privileges,” the company observed.

“At Safeco, we believe the most important work we can do for our customers is to help keep their families safe. People would rather have 'assurance' than 'insurance,'” said Paula Rosput Reynolds, president and chief executive officer of Safeco.

Safeco said that research shows motor vehicle accidents are the leading cause of death for teens in the United States.

“Teensurance offers parents peace of mind and lets them know they are doing all they can to keep their teen drivers safe,” said Jim Havens, vice president of customer solutions at Safeco.

Safeco said it will offer subscribers access to Teensurance's online services and roadside assistance for a limited-time introductory price of $14.99 a month. This price is guaranteed for two years for Safeco customers and includes free installation of the Safety Beacon into the teen's car.

The company also noted that only parents and their teens can access the driving information gathered through the Safety Beacon. “Individual driver information is not available to Safeco and will not be used to calculate individual rates,” the company stated.

More information about Teensurance is available at www.teensurance.com.

In similar news, American International Group announced in April that it was offering a discounted service allowing a parent to install a vehicle tracking device that e-mails them when their teenage driver is speeding or straying from a predetermined area.

Dave Flower, national business director for Wireless Installation Networks LLC–the parent company of Marietta, Ga.-based MobileTeenGPS–said AIG was the first of three insurers he was working with to begin a limited market test.

The MobileTeen device was being offered in six states to AIG policyholders who have drivers aged between 15 and 17. Mr. Flowers said a pilot program was also being planned with Progressive for testing in Louisiana. The third insurer was not identified.