Your teens growing up fastand now they want the car keys. And while this milestone may have you aching for latter days, it will almost certainly have you clutching your wallet.

Thats because the vast majority of insurers consider drivers under 25 to have a higher incident of serious car accidents. And the increased risk associated with teen drivers can inflate your insurance rates by 50 to 100 percent, according to the Insurance Information Institute (I.I.I.).

Securing an Affordable Insurance Premium

Fortunately, by working together, you and your teen can minimize insurance costs, largely through insurance discounts.

You and your teen can help secure affordable auto rates and:

Keep a clean driving record. Your teens accidents and traffic violations can increase insurance rates more than you might think. A more serious offense like an OWI charge can boost premiums from a few hundred dollars a year to a few thousandand will stay that way for three to five years.

Get involved. Insurers reward teens who get involved in the community. If your teen volunteers or belongs to a civic group like the Girl Scouts of America, let your insurer know!

Maintain good grades. Most insurers reward student drivers who maintain at least a B-average with lower auto insurance ratesgiving your teen yet another incentive to do well in school.

Drive a safe car. If you can get your teen in a safe car, youll likely be compensated with a lower auto insurance rate. Safe vehicles include newer, mid-sized cars with multiple airbags. In addition, the I.I.I. recommends steering clear of cars that encourage reckless driving, such as sports cars and SUVs.

All of these factors lower your teens risk of accident and serious injury in the eyes of your insurer, thereby lowering your teens auto insurance rates and saving you money!

Additional Tips

One of the most common myths about insuring teen drivers is that its cheaper to put a teen on their own policy. According to the I.I.I., its generally cheaper to add a teen driver to your existing policy than it is to purchase a separate policy. If your teen has a car of their own, insure it with your company to get a multi-car policy discount. But, as with all insurance types, shopping around before insuring your teen will help you find the best price for the coverage you need.

The I.I.I. also recommends that guardians talk to their teen about defensive driving. Accidents occur each year from teens using their cell phone, listening to music or chatting with friends while in the drivers seat. Reminding them that driving is a privilege and discussing consequences of reckless driving will help reinforce good driving habits.

Not sure your teen will heed your advice? Fashion a driving contract stating their commitment to being safe on the road and their punishment for irresponsible driving. And while difficult, many parents are learning the value of incorporating a drunk driving clause to driving contractsdirecting their teen driver to call home for a ride if theyre unable to drive their car.

Get Your Responsible Teen on the Road!

When it comes to teen driving, open communication about responsibilities, habits and consequences will help your teen make good decisions behind the wheel, keep them safeand help you maintain affordable car insurance!