My father is dreading the cost of adding another driver to the family auto insurance policy. What are some discounts that many insurance companies offer that might help my dad same some money on our auto insurance?

Insuring young drivers is a costly proposition – car insurance companies partially base rates on age, so young drivers end up paying far more for the same coverage - a 16 year old might pay four times as much as a 40 year old.

Despite this, there are a few things you and your dad can do to lower the cost of your auto insurance coverage. First, he should find out if the insurance company offers a “multi-car” discount. If you insure more than one car on the same policy, some insurance companies will give you a significant price break - sometimes as much as 15%. His agent might not offer this information voluntarily, so it is important to ask.

If you are currently a student, do everything you can to obtain good grades. Some car insurance companies also offer a discount for good students - usually in the 5 to 10% range. You may need to give a copy of your report card to your agent to qualify for this discount, but that's a small task to complete, considering your dad can potentially save a hundred dollars a year or more with this discount.

Finally, if you can find a voluntary defensive driving course in your area, take it. It's not the most exciting way to spend a weekend afternoon, but many companies will give you a break on your car insurance premiums if you provide proof that you completed the course. Keep in mind that the key word here is “voluntary” - if you were ordered by a court to take the course because of an accident or moving violation, your insurance company won't give you the discount.

If you and your dad qualify for all of these discounts, he could end up saving nearly 30% off the total cost of your family's insurance premiums. On a family policy, this can add up to $300 a year or more.