If you are the parent of a teen driver, you may be paying more than you should for car insurance. Adding a teen to an auto insurance policy can cause a substantial increase in your premiums. However, there are ways to reduce your auto insurance cost. Here are a few.

Driver Education Discounts

A driver education class can be purchased for a one-time fee. Nevertheless, once your teen completes the course successfully, you could incur annual savings on your care insurance. Most driving courses only last a few weeks and may even be offered free of charge as a part of your child's high school curriculum.

Discounts for Good Grades

You probably stress good grades to help prepare your child for college. However, good grades can also earn your child a premium discount. Some insurance companies offer a reduction in policy cost for students who maintain at least a 3.0 average.

Compare Rates for Separate Coverage

Compare the cost of adding your teen to your current policy to that of buying a separate policy for your child. A separate policy is typically the most expensive option. However, some insurance companies allow you to place your child on separate policy at no additional cost. When checking your options, be sure to consider every coverage alternative, including the possibility of insuring your teen with a different insurance company.

Consider the Car Your Teen Will Drive

Your teenager would probably love to drive the most expensive hot rod you can afford. However, the cost of insuring a teen who drives a fast, expensive sports car can be higher than you think. To save money, consider having your teen drive your family's least expensive vehicle.

Monitor Mileage

Don't allow your teen to have unlimited access to a vehicle. Low miles on his or her car can help make it eligible for a low mileage discount. Monitoring your son or daughter's driving can be simplified by using a tracking device from your insurer. Some companies offer clip-on tracking mechanisms to encourage safe driving practices and monitor miles driven.

Don't Over-Insure

If your child's car is an old clunker, don't pay extra for comprehension coverage. Full coverage premiums can exceed the replacement cost of an old car. 

If your teen is about to get his or her driver's license, consider ways to lower the impact of the required insurance coverage. You may not have to pay as much as you think if you make wise insurance choices and promote responsible driving. Before you secure auto insurance coverage for your teen driver, consult a qualified insurance agent from a company like Axiom Insurance Agency.