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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