What's more scary: knowing your teenager is now driving; or receiving your auto insurance rate increase after you add your teen to the policy?

Like it or not, teen drivers are higher risks for accidents and violations. And that always equates to higher premiums. But there are some ways to limit the rate increase.

Do some research: Insurance companies charge a wide variety of rates for youthful operators. Some insurers will add the teen to your policy when they get their learner's permit. Others will give you a break and wait until they are licensed. Before you make the purchase, contact your agent to compare insurance premiums on your potential purchase.

Good student discounts: Many insurers offer significant discounts if the young driver maintains a B average. The difference can be several hundred dollars a year, so encourage your teen drivers to hit the books and study hard.

Avoid the cool cars: Your teen may be urging you to look at high performance vehicles. Do not be tempted to cave into their demands. High performance cars will be much more costly to insure than safe, "boring" cars. Plus, the teens will be less eager to speed or show off for their friends. Your children may scoff initially, but if you are going to buy them a car, they will eventually be grateful for that durable, boring vehicle.

Say no to gas-guzzlers: While a gas-guzzler may not necessarily increase the insurance rates, they will certainly put a major dent in your wallet. 

Raise your deductible: One of the easiest ways to reduce your auto insurance premium (with or without a teen on the policy) is to increase your deductible.