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If you have a teen that will soon be driving … you will be in for a bit of a financial shock when it comes to increasing insurance premiums. But there are some strategies to help.

Let’s take a family where there are more eligible drivers than cars. Some companies require that you rate the teen driver as the primary driver on one of the cars. That is expensive! But other companies do not require them added as primary, so those companies can save you money.

In households that have a car for each licensed driver or more, the best strategy is to put the teen on the least expensive car. One strategy is to buy your kid a “clunker” and have him listed as “primary” on that – even if he doesn’t use it all that much.

Some families opt to buy their teen a car and insure them on their own – totally excluded from the family’s policy. But if the teen gets in a serious accident and he is underinsured, the other party could come after you (the parents) in a major lawsuit because the minor is in your care and custody.

A final, and most desperate strategy, is simply to make your kid go without a car and totally exclude him from your auto policy. Then, make sure he does not drive! Meanwhile, if you go the conventional route, see the impact below!

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