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Step 1
Make sure your teen is driving an insurance-friendly vehicle. This means staying away from expensive sport vehicles; instead, opt for a vehicle that rates highly for safety with Consumer Reports.
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Step 2
Consider listing your teen as an occasional driver on your vehicle. This only works if your teen doesn't have her own car, but instead uses a family vehicle. Having your teen listed in this way on your policy will save you money.
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Step 3
Take advantage of your teen's good grades. If he succeeds academically, your insurance company may offer a "good student" discount of up to 10 percent.
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Step 4
Compare purchasing an individual policy for your teen versus adding her to your policy. Although adding your teen to the family policy is often the cheaper way to go, if you have accidents or other issues, it may be less expensive to purchase a separate policy. Progressive is the third largest auto-insurance company in the nation, and provides low rates for teenage drivers. In addition, they offer additional discounts for teens who agree to have a Trip Sensor placed in their vehicle. This device tracks the vehicle's speed, the miles traveled and the time of day in which driving occurs, and reports the data to Progressive. Although this sounds invasive, it will reduce your teen's annual premium by $100.
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Step 5
Purchase an insurance policy for your teen. If you're adding your teen to your policy, contact your insurance agent to fill out the necessary paperwork. If you determine it's cheaper for your teen to have his own policy, fill out an online application with the company you choose. You will need information including your teen's driver's-license number, Social Security number and date of birth. Also, you will need to provide information about the make, model and year of the vehicle your teen will be driving. And be prepared to pay 2 months' worth of insurance premiums in advance to get the policy started.
