It's becoming the latest trend in insurance: targeting the younger segment of the population. Reaching out to the highest-paying, and highest risk, customers may not make perfect sense but four well-known insurance companies - American Family Mutual Insurance Co., Fireman's Fund Insurance Co., Nationwide Mutual Insurance Co., and Safeco Corp - are all rolling out new programs for young drivers and their parents, and while most have some conditions attached, they're also coming with hefty discounts. Here's an overview of the programs.

American Family
They've launched a "Teen Safe Driver" program in conjunction with San Diego-based Drive-Cam, Inc. which is supplying an in-car audi and video surveillance system which monitors both the driver and the road. The program was launched in 18 western and midwestern states last year, but two months ago the company added a ten-percent discount on liability insurance to their customers in Minnesota and Colorado, and may expand the discount to other states as well.

Fireman's Fund
They're letting young adult drivers piggyback their own policies onto their parents' insurance, which lets them build their own insurance files, but saves them 35 - 50% on premiums. This helps to mitigate the dramatic increase in rates that generally occurs when young adults move away from home.

Nationwide
Nationwide's "SmartRide" program had an expected launch date of Monday, March 31st in several eastern states, including Delaware, Maryland, Ohio, Virginia and West Virginia, as well as Washington, D. C. This program offers a discount of up to 5% for their clients who participate in an online safety tutorial.

SafeCo
Their program, "Teensurance" was rolled out in June, 2007. It's a program that offers a 15% discount for drivers between the ages of 16 and 25 who agree to have a satellite tracking system installed in their car.

With all these options, one might wonder why any company would choose to go after a market segment known for risk, and the answer lies with new legislation in almost every state during the past few years. With tighter restrictions about when and where teens are allowed to drive, their risk decreases, making their higher premiums a lucrative draw for major insurers.