Answer:

As you have probably discovered, insuring a teenage driver can be very expensive. Drivers under the age of 25 pose the greatest risk to insurers because of their high level of at-fault accidents. Insurance companies seek to limit their exposure by charging higher insurance rates for 16- to 24-year-olds than for any other age group.

The least expensive option would probably be to add your teenager to your existing auto insurance policy once he gets his permanent driver's license. Although this can still be an expensive prospect, your teen might be able to take advantage of certain discounts as a driver on your policy (e.g., safe-driver and multiple-car discounts for which you are eligible).

If you drive an expensive vehicle, it will be even more costly to add your teen to your policy. In this case, you might want to buy your son his own car (a used economy model, of course) and insure it in his name, rather than add him to your own policy. Older vehicles generally pose less risk to insurance companies, because repairs tend to be less expensive than repairs to newer models. Lower risk for the insurer typically translates into lower insurance premiums for you.

The only way to determine your most cost-effective option is to contact your insurance company. If you're thinking about purchasing a used car for your teen, be prepared to tell your insurer the make, model, and year of the cars you're considering. This way, your insurance agent can give you accurate insurance quotes. These quotes can help you decide whether to purchase separate insurance for your son or add him to your policy; they may also help you decide which car to purchase, if you go that route.