Auto Insurance Forum

I want to add my 16-year-old son to my auto insurance policy. I received a quote to add him and it was $500 per month. I checked with other companies and found that this is the "normal" amount. He would only drive my 2007 Nissan Maxima on rare occasions, but I can't afford to insure him. I had to sign a waiver saying he will not drive the vehicle to avoid paying the extra money. Any ideas on why the premium is so unbelievably high?

Karen, Iowa

Auto insurance premiums are always higher for teen drivers, and especially for males, because statistics show that drivers ages 16 to 24 are the riskiest in the country. Until your teenager has driven accident-free and ticket-free for a few years, expect to pay premiums far above the average level for adults.

However, there are usually a few ways to save money. Many auto insurance companies offer a "good student discount" of around 5 percent to teen drivers who maintain at least a B average in school. You may receive auto insurance discounts if you have your homeowners insurance, or other coverage, with the same insurance company. You might also get discounts for owning a car with air bags, an antitheft device, or antilock brakes. For more information on auto insurance discounts, read Nine ways to save on your auto insurance policy.

Additionally, you might save money by purchasing an older car with the title in his name, and having him buy auto insurance with only liability coverage. Or, if you feel collision and comprehensive coverage are important, select high deductibles for those coverages. Older vehicles can be less expensive to insure because they are less expensive to repair after an accident. The premium would still be higher than the premium for an adult driver, but because your own car is newer, it is more expensive to insure. Of course, you would have to weigh whether the total expenditure for this process would be much less than the $6,000 you would otherwise spend insuring your son.

For more, read When to add your teen to your auto policy.

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Disclaimer: We are journalists, not financial planners or insurance brokers. Nothing we say should be interpreted as a recommendation to buy or sell any insurance product, or to provide other financial or legal advice.