Register For Our New Stimulus Webinar Today!


Teen Driver Expenses

July 23rd, 2018 | Written by

Teen Driver Expenses

Young drivers involve a variety of expenses besides the vehicle itself. Here are examples of some of the expenses teen drivers will incur.


The cost of coverage will be based on the driver characteristics, the vehicle, the insurer and the insured’s eligible discounts. A safe driver course can often help reduce the cost of insurance. There are other discounts you may not have thought of such as a school grades discount or a device monitoring program. Consult with your auto insurance policy provider to discuss your options.


Aside from the exam to obtain a license, some states require participation in a course. According to, the cost of driver’s education can range between $30 and $180 for a classroom setting, $50 and $150 per session for road courses, and $200 and $800 for all-inclusive courses.

Cost of the Vehicle

Unless the purchaser can cover the entire cost of the vehicle at once, the owner will be committing an amount of their available funds each month. This would be true regardless of whether you are purchasing a new or used car.

Typically, leasing a vehicle is offered at a discount and a temporary alternative to purchasing a car. However, it is important to read the contract well and determine if the agreement is appropriate for you and your teen. Each leasing company will set different conditions and restrictions that need to be met to remain compliant.

Maintenance and Repairs

If you buy a new car, chances are it comes with a factory warranty. Some dealerships offer free maintenance as an incentive. Typically, this assistance can delay expenses for the owner. Purchasing a used car offers some initial monetary relief. However, it is important to research the vehicle as there is less often a warranty provided without a separate expense.

The discussion should be had on who will cover these expenses. This can be a wonderful time to sit down with your teen and discuss making a budget. The decision will ultimately remain with the rationale for the car. It will be based on how responsible the driver is at the time, the driving environment, and purpose for the vehicle. Consult with your financial advisor about some ideas on how to start the conversation.

Related Articles:

Let's Keep The Conversation Going

Send a note.

    This information is not intended to be used as the only bases for investment decisions, nor should it be constructed as advice designed to meet your particular needs. You are advised to seek the advice of your financial advisor prior to making any decision based on any specific information contained herein.
    Building Relationships | Delivering Success®
    The Prosperity Consulting Group registered as a Registered Investment Advisor (RIA) in 2005. We have with a passion for providing clients with objective investment advice and wealth management solutions. Our purpose, coupled with our fiduciary commitment, is essential in helping clients achieve their financial goals. Our firm is dedicated to providing unparalleled financial planning and investment advice to individuals, families, businesses and institutions. We have identified key areas that are critical and integral to a client’s financial success. These planning areas encompass: Investment Planning & Management Retirement Planning Estate Planning Tax Planning Business Planning Insurance Planning Income Protection & Asset Preservation Education Planning 401(k) Planning
    10055 Red Run Boulevard, Suite 130
    Owings Mills
    United States