It can be really difficult to share your teenager's enthusiasm when they are ready to start driving. For them, its exciting and fun. For you, its a knuckle-biting time full of worry about their safety and your bank account.

It's important to plan for car insurance before your child actually starts driving. Unfortunately, it is going to cost your quite a bit more to insure your teenage driver. However, you can try to contain those costs while still making sure your child is protected:

• Start by comparison shopping. Get a quote from your current auto insurance company, and at least two or three other companies.
• If you plan to buy your child a car, a new sporty vehicle will cost considerably more to insure than an older, safer used auto.
• If you have multiple vehicles ask your insurance company to list your teenager as the driver on only one of your vehicles -- preferably the oldest and least expensive one. Of course that is the vehicle your teenage needs to drive.
• Talk to your teenager about the financial importance of good grades. Many insurers offer good student discounts.

It's not a good idea to reduce the limits of liability on your teenage driver, just to save some money. Teenage drivers are among the highest risk drivers on the road. If they cause an accident, you'll be responsible for the difference between the limits on the policy and the actual damages.

If your child can keep a clean, accident-free driving record they will eventually be rewarded with lower rates. And you will be rewarded with peace of mind.