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Most parents/guardians cringe at the thought of adding their teen(s) to their insurance policy. Because teens lack driving experience and have a higher risk of getting involved in a motor vehicle crash than any other vehicle on the road, adding a new driver to an existing policy equates to paying higher premiums.

The good news is that there are several things parents/guardians can do to save money when adding a new driver to their policy, including:

• Shop around. Your current insurance company may not offer the most competitive rates or discounts when it comes to adding a new driver. As a result, shop around to see which company can offer you and your new driver the best coverage at the most competitive price.
  
  
• Research products that can help. Through independent programs such as teenSMART, you can save up to 30 percent when adding a new teen driver to your policy. teenSMART is a comprehensive program that targets skill development, retention and safe driving habits through computer based training, parent-teen activities completed both at home and in the car and a certification test completed on the home computer. teenSMART graduates have 30 percent fewer insurance claims and it is recognized by several major insurance companies, including AAA Insurance. The regular course cost is $119.95. However, AAA members receive a $50 discount and can purchase the program for $69.95. To order teenSMART or learn more, call 1-866-298-1232.
  
  
• Ask about discounts. Ask your insurance agent what discounts your teen might be eligible for, such as discounts for taking driver's education or safe driver classes. Also ask about good grade discounts, where you can save up to 25 percent on adding your new teen driver to your policy for maintaining a “B” average or above.
  
  
• Add your new driver as an occasional driver. As soon as your teen obtains their learner's permit and starts behind-the-wheel training, add them to your policy. Since they are not the only person in the household operating the vehicle, add them as an occasional driver, which will make a difference in the cost to add them to your policy.
  
  
• Talk to your teen. Make sure that they understand what the consequences are for irresponsible behavior behind-the-wheel. This agreement should be clearly stated in your parent-teen driving agreement.
  
  
• Choose the right vehicle. Most teens and parents have a difference in preference in what their first vehicle will be. Parents are generally under the impression that a hand-me-down vehicle is the best option, while most teens would prefer a vehicle that would prove to be impressive among their peers. For the safety of your teen and the least amount of impact on your insurance premium, your teen should be driving the safest vehicle your family owns, which is most likely your newest vehicle. Safety features are improved upon each year, meaning your newest vehicle will have safety features a hand-me-down vehicle does not.