Our kids did the driver training course at school and we also taught them how to drive, so both!
We got them out on the road before classes started, so they wouldn't be embarassed (about having no skills) when they started classes in front of their peers. Really, some of those kids weren't even able to drive the car out of the school parking lot, and all the other kids saw this and talked about it. Plus, since they already knew they could handle a car, they were less stressed and could pay better attention to the instructor.
Also, when the class ended, we continued driving lessons to sharpen their skills, plus to get them out driving in all kinds of conditions, rain, snow, night-time driving, and night-time driving with bad weather.
We only got a discount on insurance if they took a class. Parents teaching them got us no discount.