You’ll want to check your auto insurance coverage before your teen gets a license, and be sure to notify your insurance company immediately when your child receives a license or learner’s permit. You want coverage to start the very first day your child is behind the wheel.

Adding a teenager to your insurance policy can be costly. Insurance companies set their premiums based upon data about teenage driving performance, and teenagers as a group have far more accidents than adults. The following facts from NHTSA, the Insurance Information Institute, and the Insurance Institute for Highway Safety (see For More Information) make it easier to understand why auto insurance rates go up so much when a teen driver is added to a policy.

• The frequency of insurance claims for occupant injuries in cars insured for teenage drivers is more than twice as high as in cars insured for older drivers.
• Overall, vehicle damage losses are more than twice as high in cars insured for teenage drivers.
• In 2006, 3,490 drivers between 16 and 20 years old were killed in car crashes.
• Teen drivers have four times the fatality rate of drivers between 25 and 69 years old.
• 58 percent of teenage passenger vehicle occupants killed in 2006 were not using seat belts.
• More than any other age group, teens are likely to be involved in a single vehicle crash.

Following are some suggestions from the Insurance Information Institute, www.iii.org, for keeping cost increases to a minimum when adding a teenage driver to your auto policy.

• It’s usually cheaper to add a teenager to your policy than for them to purchase their own insurance.
• Make sure your insurance company knows if your teenager is going away to school. If your child is at least 100 miles from home, you’ll get a discount—assuming they leave the car at home.
• Encourage your teen to get good grades and to take driver’s training since these will qualify you for a discount with most insurers.
• Shop around (see the comparative shopping worksheet).
• Choose a safe car - this can dramatically affect the price of insurance.

Most insurance companies offer other discounts that may help lower your premiums. These include discounts for:

• Completing an accredited driver’s education course for mature drivers.
• Good driving records for all drivers of a vehicle.
• Vehicles equipped with antitheft devices.
• Air bags and antilock brakes.
• Lower than average annual mileage driven.