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6. How can I minimize the insurance costs of a teen driver?

To lower your child's insurance costs, seek a good-student discount for teens with a 3.0 or higher grade point average. Farmers Insurance says it offers a 25 percent discount for good students.

You may be able to get other discounts -- typically about 5 percent to 20 percent -- if your teen takes a defensive-driving class or has a vehicle with special safety features, like air bags, anti-lock brakes or a security alarm system.

If your teenager only uses the car sporadically or perhaps to drive to and from a weekend job, also ask whether your insurer offers a low-mileage discount.

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