American International Group announced today it is offeringdiscounted service allowing parents to install a vehicle trackingdevice that e-mails them when their teenage driver is breaking thespeed limit.

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

The MobileTeen device is being offered in six states to AIGpolicyholders who have drivers aged between 15 and 17, and theinsurer's initial goal is to enroll from 300 to 500 customers.

Mr. Flowers said a pilot with 50 students is being planned withProgressive for testing in Louisiana, and he is talking with athird insurer he cannot yet identify about a test with 100,000teens.

"If the pilot has legs, then AIG plans to roll it out to a muchlarger group," Mr. Flower explained, adding, "This is beingpositioned as a coaching tool for their kids to help them developsafe driving tactics."

The equipment is a 6 inch-by 3 inch-by 1 inch unit that ismounted under the dashboard on the driver's side.

In addition to speed-limit alerts, parents can notice when teensdrive outside of a predetermined area--a "geofence"--or turn offthe device.

The MobileTeen Web site shows a sample e-mail, saying: "Vehiclehas exceeded the designated speed limit of 60 mph" and giving thedate, time, location and actual speed of the vehicle. Time andplace are also given when a vehicle exits the geofence or thetracker is turned off.

Mr. Flower said AIG would be offering the device for $379 or $90less than customers who purchase the tracking service direct fromMobileTeen without insurance. In addition AIG is providing themonitoring that provides the information the teen's driving freefor up to 24 months. Buying the service direct without AIGinsurance costs $29.95 a month.

He said his firm is arranging for "an academic partner" to studythe results of the testing with insurers because "we want to provestatistical outcomes."

New York-based AIG said its program will initially be piloted inArizona, Illinois, New Jersey, Pennsylvania, South Carolina andWashington.

In addition to the Web, parents can instantly determine theexact location of the teen's car via any phone. Additionally, theAIG Teen GPS Program will automatically send the parent an e-mailand/or text message if the teen's car exceeds predefined speedlimits or is driven too far from a predefined location.

"Parents and insurance companies share one simple goal--toreduce accidents and save lives," said a statement from TonyDeSantis, president of AIG Marketing Inc., the direct marketingdivision responsible for AIG Auto Insurance.

"This technology cannot prevent kids from using poor judgment orgetting into accidents," Mr. DeSantis added. "However, it is agreat tool to help parents and teens agree on rules, monitorbehaviors, develop safer habits and ultimately save lives."

AIG Auto Insurance said it will not track individual customer'sdaily driving behaviors, and data gathered during the pilot willnot impact a customer's rate or renewal eligibility.

The insurer did not give specifics on the savings thatpolicyholders will receive for testing the system beyond sayingthere will be "a substantial discount off the normal device andmonthly service fees."

Mr. Flower said the MobileTeen product has been on the marketsince last July, and "we get all kinds of testimonials." He saidone family discovered their daughter was repeatedly roaring througha neighborhood with a 45 mph speed limit at 85 mph.