When a teenager earns their driver's license, it can be a happy occasion for the entire family. Parents can be proud of the effort their child has put into achieving this milestone. Moreover, the teen's ability to drive means they can help out with errands and won't have to ask for a ride.

On the other hand, parents will also have to start worrying about increased auto insurance costs. Since teenagers are just starting to drive and have less experience on the road, insurance companies consider them to be a higher risk. Though there are plenty of young drivers who keep safety in mind, this concern is not unwarranted. Chris Kissell, writing for the financial site Bankrate, says crashes are disproportionately high among teenagers and are the leading cause of death among Americans between the ages of 15 and 19.

While you'll have to prepare for at least some increases in your premiums once you insure a teen driver, you can still find ways to cut your costs. These options range from finding a safe car to encouraging your child to improve their grades at school.

The type of vehicle will play a significant role in insurance costs. Karen J. Bannan, writing for the automotive site Edmunds.com, says insurers will consider how expensive the vehicle is to repair, how well it can protect its occupants in a crash, and how likely it is to be targeted by thieves.

If the teenager will be getting their own vehicle, research each of these aspects before making a purchase. Organization such as the National Highway Traffic Safety Administration, Insurance Institute for Highway Safety, and National Insurance Crime Bureau will rate specific models for crashworthiness and the likelihood of theft.

An older car will typically have a lower value, and will consequently be less expensive to insure. It is often a good idea to forego collision and comprehensive insurance on an older model, since paying these premiums might cost you more than you could be reimbursed for. However, you'll also want to look into whether the vehicle's safety features will offer enough protection in a crash.

If the new driver will be borrowing a family car instead of getting their own, see if you can assign them to the least valuable vehicle in the family. The Insurance Information Institute says some insurers will assign a teenager to the most expensive vehicle, thus increasing the insurance costs. If they are assigned to a cheaper car, they should only use this vehicle; your premiums will likely increase if they are involved in an accident while using a different vehicle.

You have several options for modifying your insurance coverage to lower your costs. It might be more inexpensive to add a teenager to their parent's policy rather than get them a separate one. Kimberly Lankford, writing for the financial site Kiplinger, says you can also consider raising your deductibles for your comprehensive and collision insurance coverage.

Increasing your liability insurance can give you an extra safeguard if your child is responsible for an accident. The Insurance Information Institute says the required minimums are often not enough to cover the medical and property damage costs after an accident. If your teenager's negligence leads to a crash, you can be on the hook for any expenses not covered by insurance.

An umbrella policy can also be useful when you have a new driver in the household. This policy is available at a minimal cost, and provides a second level of coverage if your liability coverage is exhausted.

Check the policies offered by different insurance companies to see which ones are most suitable for you and your family. Lankford says that while your current policy may be acceptable to you, it might be possible to find a more beneficial one for families with teen drivers.

Several insurers will offer discounts based on the new driver's behavior and activities. Many will reward teenagers who do well in school by reducing their insurance premiums. Kissell says some options include reducing costs for students who maintain a B average or higher, make the honor roll or dean's list, or score well on a standardized test.

If a student is going off to college and won't be taking a vehicle with them, insurers will typically agree to a discount. Some may even let you take the teenager off your policy temporarily.

Many insurers have started programs to track a driver's behavior on the road and set their insurance costs accordingly. Bannan says a device plugged into the vehicle's diagnostic port will track hard braking maneuvers, speed, and other activity. This information can also be useful for parents who want to monitor whether their child is driving safely.

Insurers may offer discounts for teenagers who attend safe driving courses. These courses sometimes take place in a classroom environment, but may also be offered online.

See if your child is willing to wait an extra year or two to get their license. In Connecticut, drivers under the age of 18 are subject to several restrictions such as who can be a passenger and what hours they are allowed to drive. Waiting until a later age can result in lower premiums and avoid these restrictions, though you'll want to make sure your child gets adequate training and experience as well.

Talking with a teenager about their responsibilities can help them understand the importance of auto insurance and how unsafe driving can affect its costs. Explain how infractions or accidents can affect insurance rates, and set up a driving agreement that establishes consequences for negligent behavior.