Turning 16 is a huge milestone for teenagers because it means that they are old enough to get theirs learner's permit which eventually turns into a license. Getting a license can be exciting for them, but quite scary for the parents. This means worrying about them on the road. Teenagers have not been driving very long and have much less experience which makes them more likely to get into an accident. On top of worrying about their safety, you are also worried about how much your car insurance will go up when you place them on your policy.
When a teenager starts driving, they must have insurance in order to be on the road. You have two choices when it comes to insuring your teenager. You can either put them on your policy, or have them get their own policy. If you are planning on paying for some or all of their insurance, it would make sense to put them on your policy because it would probably be cheaper. But you also must remember that they will raise your rates. If they are going to pay for their own insurance, it would benefit you to keep them off your policy, but it would be more expensive for them.
Insurance for teenagers is always higher than an adult, of course unless that adult has been in many accident consistently over the years. Teenage insurance is high for a couple of reasons. First of all, teenagers are more likely to get into accidents because of their inexperience and often reckless driving. This is why males are charged more as well because they get into accidents more than girls.
Also, as a new driver, the insurance agent does not know what kind of driver you are. You could have a horrible driver that's going to cost them a lot of money, or you could be a great driver that never gets into an accident. They do not know, so they are not going to take a chance with you. Fortunately, in time, your rates will go down if you consistently drive safely and do not get into accidents. On the other hand, if you get into accidents and get tickets, your rates will consistently go up.
I recommend having your kids pay for your own insurance, whether it's on their own policy or yours. If they are old enough to drive and have a license, they should be able to get a job and drive to work, therefore giving them money to pay for insurance, gas, and other expenses. This will teach them responsibility and save you money.
Some insurance companies give discounts for students with good grades, usually a B or better. This is a great way to encourage them to get good grades and save money. Understand that teenage insurance rates will be higher, teach them to drive safely and defensively, take advantage of student discounts, and make sure you get good insurance. Then, they are ready to drive!