It can be really hard to share your teen’s excitement when they’re ready to start driving. For them, it is exciting and fun. For you, it’s a knuckle-biting time filled with worry about your safety and your bank account.

It is important to plan for Car insurance before your child starts driving. Unfortunately, it will cost you a little more to insure your teen driver. However, you can try to contain those costs while still making sure your child is protected:

• Start by comparing prices. Get a quote from your current auto insurance company and at least two or three other companies.
• If you’re planning to buy your child a car, it will cost considerably more to insure a new sports car than an older, safer used car.
• If you have multiple vehicles, ask your insurance company to list your teen as a driver in only one of their vehicles, preferably the oldest and least expensive. Of course, that’s the vehicle your teen needs to drive.
• Talk to your teen about the financial importance of good grades. Many insurers offer good discounts for students.

It’s not a good idea to lower your teen driver’s liability limits, just to save some money. Teen drivers are among the highest risk drivers on the road. If they cause an accident, you will be responsible for the difference between the policy limits and the actual damages.

If your child can maintain a clean, accident-free driving record, they will eventually be rewarded with lower rates. And you will be rewarded with peace of mind.