Education

• Insurance companies encourage teen drivers to complete a driver's education course. Not only does this prompt the teenager to be a more aware and developed driver, but the auto insurance company may offer a discount to those who complete an approved course. Furthermore, education reduces accidents, and accident-free driving experience, in turn, lowers insurance premiums over time.
  
  

Good Grades

• Many major insurance companies offer a discount on the costs of insurance for teen drivers who attain and maintain good grades. For example, an insurance company may offer a percentage reduction in premium costs to drivers under the age of 25 who are full-time students and make good grades, generally As and Bs.
  
  

Vehicle Type

• Regardless of the driver's age, the type of vehicle insured affects insurance rates. Anti-theft devices, factory-equipped air bags, anti-lock brakes and daytime running lights are a few of the features that can reduce car insurance rates. In addition, older vehicles can usually be insured for less. Although the type of vehicle insured does not directly reduce the costs for teen drivers, it can affect the total cost of auto insurance for a group of drivers within one family.
  
  

Multiple Policies

• Insurance companies and independent agents generally offer discounts to policyholders who carry more than one policy with them. Purchase your auto insurance from the same company you contract your homeowner's insurance policy with if their product fits your needs. If the company that insures your home does not offer auto insurance, try to buy both from the same agent.
  
  

Competitive Rates

• Being stuck in a routine can lead to paying more than necessary for car insurance. Shop around. If your present company does not offer discounts or is not willing to help you find ways to save, look at the competition. Parents should remain aware of the limits of coverage, however, and not sacrifice sufficient insurance for cheaper premiums.