My son just turned 16, and I planned to add him to my car insurance. But my colleagues at work suggest I not add him. They say he will be covered whether or not he's on my policy if he's driving my car. Is this true?

Call your car insurance agent or car insurance company for the answer to this one, rather than asking colleagues. It depends on whether your son has a permit or a license, and, in part, where you live.

Some states allow car insurance companies to require you to list a teenager with a driving permit on your insurance policy. Most insurance companies don't charge you extra for teens with permits, but you should still check whether to list them on the policy.

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A permit lets a teen drive only when there is a licensed adult driver in the vehicle and, in some states, only during daytime hours. Usually a permit expires after 60, 90 or 180 days.

With a driver's license, your son can drive alone, although he may face some temporary restrictions. For example, he may face a limit on the number of passengers in the car if your state has a graduated licensing law.

If the insurer doesn't require you to list your son on the policy when has his learner's permit, let the insurance company know when he gets his license. No matter where you live, he'll need to be listed on the policy if he's licensed and drives your car.

If your son buys his own car, he'll need his own insurance policy for coverage. You can then save money on your policy by listing him as a "named exclusion." Be careful, though. If he's excluded on your policy and drives your car anyway, your insurance won't pay if he crashes your car.

For more, see When to add your teen to your car insurance policy.