A drivers license is a rite of passage for every kid but it leaves many parents frantic. Yes, adding a teen driver to your car insurance policy will inevitably raise your rates, since teens add more of a liability to your policy. However, you can save on your car insurance even while adding a teenage driver to your policy.

1. Look For A Good Student Discount

Discounts (often from 10-25%) for teen drivers that have a B or better average. Certainly an extra incentive to your teenager for keeping those grades up; tell them that if they dip below that B average, they will have to make up the difference!

2. Keeping the Driving Record Clean = Steady Car Insurance Prices

Statistics don't lie. According to experts, the crash rates for 16-year-olds are three times higher than those for 19-year-olds, and 6 times higher than for drivers aged 20-24.

Your rates will increase by adding a teen driver, but that increase will pale in comparison to the increase you will see if they get into an accident or even get a single traffic citation. It is very important that you impart the importance of driving safely, and remind them that driving is a privilege that can be easily taken away if they cause an accident or ignore traffic laws. Not only will a clean record save you money on your insurance but will give you peace of mind when they are behind the wheel.

3. Raise Your Deductible and Lower Your Car Insurance Rates

Raising deductibles on an insurance policy can save money and lower your premium, but although most people know this they don’t realize how much their insurance premiums are going to increase by adding a teen driver to their policy. FreeInsuranceAdvice has always advised our consumers that significant savings can be realized by raising their deductibles.

All drivers on the policy must be even more careful not to get into an accident with that higher deductible, as this is the amount that will come out of your pocket before your insurance company starts paying for the rest damages. If you've raised your deductibles (for example from $250 to $1000), make sure to convey to your teen driver that accidents are now double whammies; you will have to pay more out of pocket and your insurance costs will then go up (usually significantly). However, if you can avoid any accidents the higher deductibles can show you considerable savings.

4. Older Model Cars Have Lower Car Insurance Rates/h2>

New cars are more costly to insure so when you consider prchasing your teen drivers car you may find that on older car would be a better choice than a new model. Check to see if your insurance company lets you assign drivers to your cars. If so assign your teen (and have them drive) the oldest model car on your policy. Keep your costs down until you teen driver is older and therefore not costing you as much to insure, you and other drivers on your policy should consider not buying new cars. That way you can keep your premiums down for every car covered on your policy.

5. Keeping Your Information Up-To-Date and Shopping Around for Multiple Auto Insurance Quotes = Insurance Savings

Make sure you review your policy at least once a year. Make sure all of your information is kept up-to-date. Examples:

• Your rates could go down once your teen graduates from high school or turns 18.
• If your college student does not have a car at college with them (and doesn't drive when home on holidays), you could take them off your policy.
• Make sure your teen is really not driving, because if your uninsured teen gets in an accident without insurance, that could really cost you.

The most important thing is to make sure you check several different companies. Different companies will charge you different rates when adding a teen driver, and your existing policy may not offer you the best deal.