You're son or daughter just turned the age of the legal driving limit. It's an exciting day for them, but not so exciting for the parents.

You know about all the dangers of driving a motor vehicle and especially at a high rate of speed like most youngsters will do when they fist get their license. You're concerned and so you should be, but you are not the only one. The ugly truth is that so is the insurance company providing coverage for your son or daughter, and that's why your are most likely to get stuck with a higher car insurance premium if you are insuring your kids.

Any vehicle on the road must be covered by insurance. This is not an option and if you are caught without car insurance you will pay for it dearly. Compulsory insurance covers these basic needs and will protect the vehicle and other vehicles involved in the accident.

Compulsory insurance factors in driving age and experience before anything else, which makes for very high premiums for young adults just starting out on the road. Unfortunately, there is little you can do to alter this high premium for your children.

What you can do stress the importance of safe and defensive driving to your children. Tell them to avoid distractions and keep their eyes fixed on the road in front of them. If they do that, there premium will slowly progress in dollar signs as the years progress.

If the parent wants to further their children's insurance coverage than signing up for third party insurance is a terrific idea. Chances are your son or daughter will make a few mistakes when they first start out driving alone. Hopefully these mistakes will not result in harm to your children or others. Third party insurance covers accidents involving the sole car of the driver.

You can sign up for a wide range of deductibles which are taken out in the event of an accident. The higher your deductible, the lower you will reduce the cost of annual insurance. Every year your son or daughter avoids an accident they will receive a "no claims" bonus which is good towards the next year. The bonus reduces the premium and reduces costs every year the trend continues.

Comprehensive car insurance can add up quick, especially if the driver is young and inexperienced. Also if your driving history is tainted, the insurance company will remain skeptical. Take this into account if you plan to buy a new vehicle.

Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal.