From the American Automobile Association

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INSURANCE-When your teen is eligible to drive, there's not much you can do to AVOID COSTLY PREMIUMS, but there are ways to lessen the financial impact.

Realize that your premiums will be going up, says Bob Iwanczuk, product manager for AAA Mid-Atlantic. But you can delay the increase by keeping your child off your policy for as long as your state's law allows. Some require you to add your teen when he gets a permit; others allow you to wait until he's licensed. Either way, though, you should definitely inform your insurance company when your child is eligible to drive.

Once your teen is on the policy, look for ways to minimize the damage to your auto insurance payments. Assuming the new driver is still living in your household, Iwanczuk says, insure him on your insurance rather than purchasing a new policy for him. (This will be possible unless the teen owns the car and it is registered in his name.) It's generally considered a good idea for you to own the vehicle your child will be driving and keep him under your policy. In most cases, adults are eligible for more discounts than the teen (good-driver or multiple-vehicles- on-one-policy, for example).

Realize that the car your teen drives will also impact the insurance premium. Avoid small cars, trucks and SUVs. Also keep in mind that older cars usually cost less to insure because repairing them isn't as costly-something to think about when deciding between a new model and something off the used car lot.