Dear Driving for Dollars,

My daughter just got her driver’s license. We will be getting a second car and she will probably drive the “old” car primarily. What’s the best and cheapest way to insure us on both cars?

— Nadine

Dear Nadine,

Teen drivers are usually quite expensive to insure. Generally speaking, the cheapest way to insure a teen driver is to own one less car than all the drivers in the household. This way, the teen can be insured as a secondary driver in the household and the car insurance company assumes that the teen will be driving fewer miles than if she had her own car.

It sounds like this may not be possible in your household and that your teen driver will be getting her own car. If that’s the case, talk to your car insurance company about which auto will be cheaper to insure her as the primary driver. If you haven’t purchased the second car for your household yet, ask your insurer for quotes on the various cars you are considering, as the costs can vary widely.

Also, ask your insurer if they offer any teen driver discounts that will help you reduce costs. Some insurance companies will offer a discount for taking “driver’s ed” and some offer a greater discount if your teen completes a defensive driving course. This might be a good time to look at any other ways you can save on your policy. These could include discounts that would apply to you, or combining your car insurance and homeowners policy with the same company, which can also lead to a discounted rate.

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