Insuring Teen Drivers Save money by shopping around for your teenager's policy

Teen drivers are expensive to insure, and with good reason. Due to their inexperience and penchant for reckless behavior, teen accident rates are dramatically higher. If you're planning on adding a teenage driver to your existing policy, brace yourself for a significant rate increase. Teenage boys are almost twice as expensive to insure as girls, but you can expect a jump with either.

Be sure to talk to new drivers about defensive driving and the dangers of driving drunk or under the influence of drugs. Car accidents are the number one cause of death in teenagers; it's imperative to have a conversation about this. If your state doesn't have a graduated driver license program that restricts when and with whom teens are allowed to drive, consider enacting your own rules. States with these programs have been extremely successful in curbing accident rates in new drivers 10-30 percent.

There are ways to make the increased premiums sting a little less. Students that carry a "B" average receive discounts, as do students that are away at school. Cars that are expensive for adults to insure are even more so when it comes to teens. It's best to stick with low-horsepower sedans and wagons and avoid small, sporty cars. Impress on them the importance of obeying traffic laws and posted speed limits. If you thought insuring a teen was expensive before, wait until they get a couple of tickets—it won't be pretty.

Insurers' rates for teens vary dramatically, so it's worth getting quotes from a few different companies. It's nearly always cheaper to add a teen to an existing policy instead of purchasing a separate one, so you might want to take the time to see if you can find yourself a lower rate in the process.