Saving money on auto insurance helps everyone's pocketbook. But once your teenager gets behind the wheel, all hope of cheap car insurance rates is lost.

Or is it?

The Low-Down

Here's the bad news: adding a teen driver to your policy can increase your auto insurance rates by as much as 50 to 100 percent. This is simply because young people often take risks while driving, and don't have the experience needed to make wise decisions behind the wheel.

Distraction also causes many accidents and deaths on the road where young people are concerned.

But there is good news. You can impact those auto insurance increases--and keep them to a minimum--just by planning ahead and taking decisive action.

If you and your child are willing to work together to help keep costs low, you might be surprised the difference you'll see in your auto insurance rates.

What You Can Do

So what can you do to help keep car insurance rates low? Follow these cost-saving tips recommended by insurance experts:

Insure your son or daughter on your auto insurance policy. It is generally cheaper to add your teenager to your insurance policy than to purchase a separate one just for the child. If your child will be driving his or her own car, adding that vehicle to your own policy also qualifies you for a multi-policy discount.

Encourage your teen to get good grades and take a driver's training course. Most auto insurance companies offer student discounts for maintaining at least a "B" average in school and taking driver's training courses.

Shop around for the best rates and coverage before you settle on a new policy. Insurance companies vary dramatically in their pricing strategies concerning young drivers, so make sure to compare offerings side-by-side.

Pick a safe car for your teenager to drive. The type of car a young person drives can dramatically affect the price you pay for car insurance. A safe, easy-to-drive car poses less risk to both your auto insurance company and your teenager--and helps keep insurance rates down.

Inform your insurer if your child is going away to school. When your young person attends school at least 100 miles away and leaves the car at home, you qualify for an auto insurance discount during that time, since the risk of accident is reduced while they're away.

Be a good role model for your teen. Always wear your seatbelt; follow traffic laws, and remember that children often mimic what their parents do. The better example you set while driving, the better driver your teen will most likely be--resulting in lower car insurance rates.

Encourage safe driving habits. Initiate conversations about the risks of distractions, drinking and driving, and lack of sufficient sleep before driving. Discuss with your teen how using a cell phone, talking to friends or listening to music can distract the attention and cause an accident, further escalating auto insurance costs.

Limit the amount of time your teenager may drive without your supervision. Many states have already reduced their rate of teen accident by restricting the amount of time new drivers may be on the road without adult supervision. So take responsibility for your teen's driving time; you'll help keep your child safe--and keep auto insurance rates low.

The Results

By planning ahead and taking decisive action, you and your child can safely navigate the teenage years and keep auto insurance increases to a minimum.

All it takes is a little time, effort and--most importantly--communication!

About InsureMe

InsureMe, an Englewood, Colorado-based company, links agents nationwide with consumers shopping for insurance. Specializing in home, life, long-term care, health and car insurance quotes, the InsureMe network provides thousands of agents with insurance leads every year. For more information, visit InsureMe.com.

Penny Hagerman is a copywriter and insurance information expert based in Denver, Colorado. She holds a BA in Communications/Journalism, and contributes years of writing and editing experience in print media and Internet communications through her informative articles.