If your teen owns their own car — the title is solely in their name, and not jointly titled with a parent — they will likely need to buy their own separate car insurance policy. However, if the teen is driving the family vehicle or has a car that's co-owned by a parent, they can be added as a driver to the family auto insurance policy.

When your teen is ready to get their learner's permit, it's a good idea to notify your insurer. As a learner driver, they may be covered on your auto policy because they are using your vehicle with your permission. Once they get their driver's license, you'll likely need to add them as a listed operator on your policy.

Keep in mind that the rules on when to add your teen driver to your policy vary by insurer. So, you may want to talk to your insurance provider sooner rather than later to go over your options.

Adding a teen driver to your policy can affect how much you pay for coverage. Ask your insurance provider if your insurer offers any teen driver discounts for good grades or for completing a driving safety course.

Additionally, the type of car your teen drives may affect your car insurance premium. If you're shopping for a new or used car for your son or daughter, you may want check out the IIHS' list of safe vehicles for teens. Each year, the organization puts out a list of "good" and "best" car choices for teen drivers, based on safety and price considerations, among other factors.