Purchasing auto insurance for your teenager can be a shocking experience for many parents, primarily because it can be expensive. Teens are inexperienced, high-risk drivers, and insurance companies protect themselves by charging higher rates for them. If your teen will be driving soon, here are several things to know about discounts you can get and ways to encourage him or her to be a safe driver.

Discounts for teen drivers

You might be able to get the cheapest rates on auto insurance for your teen by taking advantage of the following types of discounts:

• Multi-car policy – Adding your teen's car to your existing policy will typically be cheaper than creating a new policy that only covers your teenager.
• Good grades – If your teen gets good grades, he or she can turn in report cards to the insurance company in exchange for discounts.
• High deductible – Raising the deductible on the policy will also cost less money.
• Choose an older car – The car you purchase for your teen will also affect the rates you pay, and you are best off choosing an older car that is not worth a lot of money.

These are some basic ways to save money on car insurance, but there are also some steps you can take that will encourage safe driving habits with your teen.

Additional ways to encourage safe driving habits

Limiting the amount of driving your teen is allowed to do is a great idea to begin with until he or she gets used to driving around. For example, you may want to allow your teen to drive to and from school and work only. This will give him or her some practice, and it will prepare the teen for other types of driving.

You may want to also set up a rewards and consequences system for your teen. For example, you may want to reward your teen for following road and house rules, and you could do this by offering to pay for the insurance for a set amount of time. An example of a consequence would be the teen paying his or her own insurance or not getting to drive if he or she breaks a rule. This type of incentive can be a great idea to help your teenager learn safe driving habits after getting a driver's license.

If your teen will be getting a license soon, you should start looking into car insurance policies. To learn more or to ask for a quote, contact an insurance company today.