My teenager just got his license. How can I insure him without going broke?

As you have probably discovered, insuring a teenage driver can be very expensive. Drivers under the age of 25 pose the greatest risk to insurers because of their high level of at-fault accidents. The least expensive option would probably be to add your teenager to your existing auto insurance policy once he gets his permanent driver's license (or whenever your insurer requires). Although this can still be an expensive prospect, your teen might be able to take advantage of certain discounts as a driver on your policy (e.g., Good Student, Safe Driver, and Minor Child discounts, if eligible).

If you drive an expensive vehicle, it will be even more costly to add your teen to your policy. In this case, you might want to help your son buy his own car (a safe but used economy model, of course) and insure it in his name, rather than add him to your own policy. Older vehicles generally pose less risk to insurance companies, because repairs tend to be less expensive than repairs to newer models. Lower risk for the insurer typically translates into lower insurance premiums for you.

To determine your most cost-effective option, compare some vehicles online or contact your insurance company. If you're thinking about purchasing a used car for your teen, be prepared with the make, model, and year of the cars you're considering. This way, you can get accurate, comparison insurance quotes, to help you decide whether to purchase separate insurance for your son or add him to your policy; they may also help you decide which car to purchase, if you go that route.