There are few events in a young person’s life more memorable than purchasing their first car or even obtaining their license in the first place.

There are also few events more nerve wracking and financially stressful for parents, and that is why it is best to tackle the issue head on with a fistful of knowledge.

Here are 10 tips for getting a good car insurance rate for your younger driver:

Know the laws relating to younger drivers

The first thing you need to do before you set out to get insurance for your young driver is you need to know all the laws regarding younger drivers, their licenses, and the types available on the market for them. Often things are a bit different for younger drivers and not always in a bad way. Sometimes insurance rates can be more cheap depending on the younger driver’s situation. In terms of licenses, sometimes there are age-based restrictions placed on younger drivers first starting out on the road. Whatever the case, knowing these laws first will help you get some idea of what kind of insurance policy or car your younger driver will need.

Require your driver undergo some kind of driver training or education above what the state mandates

Sometimes insurance companies will give you a lower rate if your younger driver takes a driver’s education course. These are above what the state recommends so you should check with your provider first to see if this is an option. If it is, they will be able to provide you with a list of driving schools and also help you with the necessary steps to get your discount upon completion.

Avoid distracted driving and look for models that are safe and reliable rather than feature filled

When shopping for the first car, keep in mind how distracted driving can lead to accidents and death on the road. While you might be tempted to start off with a featured filled car that has every entertainment function under the sun, this may not be the best thing for your young driver. Keep in mind how easy it is to become distracted while on the road and maybe opt for something a little simpler than what you really want.

Practice defensive driving

Learning how to obey the rules is as important as knowing what to do when someone else isn’t obeying the rules. Defensive driving skills are key to avoiding accidents and becoming a better driver.

See if you can add your driver to your policy

Some insurance companies will allow parents or guardians to add their child to an existing policy. This often saves the younger driver a lot of money in terms of cost but you should check with your insurance provider to see what the full details are before signing up.

Good grades at school and employment can sometimes lower rates

Many insurance companies will reward things such as employment or good grades for younger drivers. Again, check with your provider and see what’s on offer.

Let the company know about how often your young driver uses the car

If the younger driver is away at school and only rarely home then it may make sense for you to let the insurance company know. Sometimes they will offer a reduced rate because of the less frequent use of the car.

Check the limits of personal insurance policies

Before signing anything, it is best to know what the limits are for the insurance and how much it will cover in the event of an accident.

Do an annual review of the cost of your auto insurance

Insurance companies make money by hoping you just let things coast - don’t do that. Do an annual review of your insurance expenditures to make sure you’re getting the best deal possible. If you’ve had no accidents or incidents on the road then you should inquire about a lower rate.

Always obey the law

The most important thing is to obey the law and follow the regulations of the area you live in. Nothing is more expensive than ignorance of the law.

Getting insurance is easy but finding the right insurance for your budget, car, and driving circumstances is difficult. Often younger drivers own or operate inexpensive, smaller vehicles. Depending on the age and size of the vehicle, you should be able to find a competitive insurance rate on everything from a Ford Fiesta to a Mercedes C-Klasse.