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Teenage Driving: Cost budget analysis

A Budget Analysis

Here are the first year costs for putting a 16 year old teen behind the wheel of a 2000 Ford Focus SE 4-door sedan, based on AAA figures for maintenance, depreciation and tires:

License fees $200
Financing charges $ 2,400
Maintenance costs (incl. tires) $ 580
Gas costs $ 1,160
Insurance $ 2,537
TOTAL $ 6,697

Assumes a 16 year-old driver with a clean driving record in a 200 Ford Focus with full coverage and no good student discount.

If the teenage driver is involved in an at-fault collision and receives a motor vehicle citation, the insurance premium rises by $1,440 to $5,801 for the year for the family with three vehicles.

More About Insurance

Average insurance costs with and without teenage drivers:

Parents only with two cars $ 1,824
Parents with part time young driver $ 2,888
Parents with Full time young driver, own car, clean record $ 4,361
Young driver with car adds this cost $ 2,537
Parents with full time young driver,
own car, tic & coll.,
$ 5,801
Young driver with tic & coll. Adds to policy $ 3,977

Average annual cost for a 16 year-old driver:

With a clean driving record $ 6,697
With one ticket and collision
(adds $1,440 more)
$ 8,137

Second year costs (age 17)

Registration renewal $ 100
Financing $ 2,400
Maintenance $ 580
Gas expense $ 1,160
Insurance (clean driving record) $ 2,520
TOTAL $ 6,760

Third year costs (age 18)

Registration renewal $ 100
Financing $ 2,400
Maintenance $ 580
Gas expense $ 1,160
Insurance (clean driving record) $ 2,430
TOTAL $ 6,670

Total 3-year cost w/ minimum maintenance: $ 20,127


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