Adding a teenager to your car insurance policy can be an expensive proposition.
Drivers under 25 tend to pay the highest auto insurance rates of any age range, particularly young single males.
It may be tempting to keep the car keys, and not let your teenager drive at all, but that probably won't be a popular option.
Fortunately, you can keep a good relationship with your younger driver, and find car insurance coverage without going broke.
Below are some suggestions for saving money.
Safe Driving Pays Off Simple steps like always using a seatbelt and driving close to the speed limit can greatly reduce the chances of having an accident or another moving violation.
Even if it's not required, encourage your teenager to take a driver's education course.
You may want to reward their safe driving with some kind of an incentive (or dis-incentive if they are responsible for a claim).
One of the biggest reasons that insurance premiums may go through the roof for young drivers is for a drunk driving conviction.
You may want to sit down and go through the consequences of a DUI with your teenage, or even college age, drivers.
Driving while under the influence of alcohol can be extremely costly - in New Jersey, for instance, the total cost for one DUI for an underage drinker can run up to $24,000 (source: Municipal Alliance for the Prevention of Substance Abuse).
This includes increased insurance premiums, legal fees, and other fines.
A young person with no previous convictions who is convicted of a DUI could face insurance premiums raised to thousands of dollars for at least three years, according to David Snyder of the American Insurance Association.
Look for Discounts Good Student Discount.
Many insurance companies offer discounts if students are under 25 years of age, maintain a 3.
0 ("B") grade-point average or better, and are enrolled full-time in high school, community college, or university.
Young Driver Safety Discount.
Taking a local accredited driver safety class may also lead to a discount, or help to remove points from a young driver's license after an accident or violation.
Check with the National Safety Council for information on where to take a driver safety course.
They can also provide information regarding state certified programs that offer courses for point reduction, car insurance discounts, drivers education classes, or retraining.
Community Involvement.
Some insurance companies offer discounts for young drivers who are a part of civic or community organizations, such as Scouting, or even for volunteering at a local hospital or nursing home.
Insurance companies are looking for evidence that a young driver is less of a risk, and many are willing to reward those who have spent time bettering their community.
When doing comparison shopping, ask to find companies that reward community involvement.
Anti-theft/Safety Features Discount.
If you car is equipped with anti-theft features, such as alarm systems, protective steering column devices, and certain anti-theft recovery systems, it's likely your insurance rates will be reduced.
Insurance rates are also often discounted for cars with added safety features, such as automatic seat belts and anti-lock breaks.
Side-impact airbags may also help.
  Choose Your Car Wisely The type of car driven is a large factor in determining how much premiums will be.
Choosing a safer car can save up to 50 percent on auto insurance.
SUVs, sports cars, expensive luxury cars, and high performance cars are considered to be higher risk by insurance companies, and you're going to pay more to insure them.
Research Your Options To find a good rate on auto insurance for your younger driver, you need to do your homework.
Even though you're happy with your current insurance company, it might be a good time to review your options with other companies.
If you don't, you may end up spending hundreds more than you have to.