Does your teen really need a car? The numbers may surprise you

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Does your teen really need a car? The numbers may surprise you

For generations, the customary practice in many families was to give their newly licensed teenager their own car, or at least the okay to borrow mom and dad’s ride. But in 2026, this is no longer a foregone conclusion. That’s because the costs associated with young driving are through the roof, and many households can no longer shoulder these rising collective bills.

But instead of kicking that license down the curb indefinitely or forcing youngsters to fully pay for their own driving, families are getting creative and exploring different strategies to save money without necessarily keeping their sons and daughters off the road.

Here, TheZebra.com takes a closer look at what you should consider carefully before handing those keys over to your child, options that work for your budget, and ways to lower the financial burden.

The True Costs of Teen Driving

The numbers don’t lie: It’s downright expensive to purchase, own, and operate a car today. For proof, ponder that:

• The average new car price currently exceeds $49,000 versus nearly $27,000 for a used vehicle, Kelly Blue Book reports.
• The total expense of owning and operating a new automobile is $11,577, or $964.78 monthly, per AAA.
• The average annual premium for teenage car insurance coverage is $5,340 for males and $4,738 for females, according to The Zebra, and 16-year-olds pay almost $8,000 annually for coverage.
• AAA indicates that gas prices continue to hover over or around $4 per gallon.

Collectively, these expenses can tally thousands every year and, over the time your young driver lives under your roof, reach the five-figure range. Auto insurance often accounts for the highest of these costs.

“Car insurance is all about risk, regardless of age. Statistically, teens are far more likely to be involved in an accident or file a claim than any other age group, and most of it comes down to inexperience,” says Beth Swanson, insurance analyst with The Zebra.

At the same time, “the overall cost of vehicles, repairs, and fuel has increased, so families face a combination of higher total expenses. Many households underestimate the total cost because they focus on the car purchase but not the full cost of ownership,” Janet Ruiz, director of strategic communications for the Insurance Information Institute, notes.

Driving in High School vs. College

The related costs of giving your offspring the green light to drive can differ depending on their age and school status. But the fact is, the younger your driver is, the more expensive insurance premiums will be. Here’s a breakdown of what to consider if your child is still in high school or now attends college.

High school

Ask yourself, is it even worth it for my high schooler to drive?

“Does your teenager need a vehicle, or would it just be convenient? These are two very different things,” explains Ashley NeSmith, founder of Ashley the Auto Advocate. “If the teenager is working, involved in activities, driving long distances to school, or lives in an area where there aren’t many transportation options, having access to a vehicle makes sense. But I don’t think every adolescent automatically needs their own vehicle the minute they get a driver’s license. As a parent, I’d be looking closely at maturity, responsibility, grades, driving habits, and whether they’ve shown they can handle the privilege that comes with driving.”

Of course, necessity often dictates that a child must have driving privileges.

“Families should evaluate whether driving is truly necessary based on transportation alternatives, schedules, and safety considerations. Key factors include access to public transportation, distance to school or activities, work obligations, and the teen’s driving readiness,” suggests Ruiz.

College

But what if your son or daughter is older and attending college?

“From an insurance standpoint, keeping your college student on your existing policy is usually the most affordable route. If they maintain good grades, there’s often a good student discount available as well, along with an away-at-school discount you may qualify for,” says Swanson.

Whether they should bring a vehicle to campus or not requires careful consideration. If the school is walkable or has solid public transportation, a car could create more hassle than it’s worth.

“Campus parking lots are often a significant distance from dorms and academic buildings, which means the car is out of sight and more vulnerable to vandalism, theft, or hit-and-run incidents,” Swanson continues.

If the auto will remain at home and unused while your student is away, ask your insurer about parked-car or storage options.

“There are ways to reduce your premium without dropping coverage entirely—especially if the vehicle isn’t being driven regularly,” notes Swanson.

Viable Alternatives

Still not sure if allowing your teen to have their own car—or drive at all—is a good idea financially or otherwise? Maybe it’s time to explore other options, including:

• Share the family car. Doing so and adding an adolescent to your family’s auto insurance policy is a lot cheaper than buying a separate car and a standalone policy. Just be sure to set clear rules and scheduling parameters.
• Purchase a lower-cost vehicle. Buying a reliable and recommended used ride, such as a certified preowned vehicle, can cost much less than a new car and mitigate losses from depreciation.
• Enroll in usage-based insurance. Pay-as-you-go insurance coverage, which requires using a smartphone app or telematics device, calculates your rate based on your teen’s actual driving habits and could lower your premiums.
• Delay licensure. “Families can postpone getting a driver’s license and use interim options to lower near-term costs,” Ruiz suggests.
• Carpool. Sharing rides with other families reduces costs and driving exposure.
• Use public transportation. Riding buses and trains may be ideal options for students residing in densely populated environments.
• Use bikes or scooters. An e-bike that your child can securely lock up makes it quick and easy to get from A to B.

Rideshare Options

A newer alternative families can turn to is specialized ridesharing for high schoolers. Uber Teen and Lyft Teen enable adolescents ages 13 to 17 to request their own rides under strict parental oversight.

Here’s how it works: Mom, dad, or a guardian must invite the child via their own app, linking the account to a family payment method. After the teen finishes the required in-app safety onboarding, they can hail rides on their own, sitting only in the back seat, and be driven by experienced, highly rated drivers who have passed rigorous background checks. The fees/fares are the same as those charged for a comparable ride by adults, so if your child isn’t likely to log a lot of regular miles driving, ridesharing could be the more economical alternative.

Or, if you live in the greater Phoenix area, Waymo now offers "Teen Accounts," which permit 14- to 17-year-olds to ride alone in autonomous, driverless cars with parental permission. (So far, however, this service is not available in other markets.)

Good Candidates for Teen Car Ownership

Ask Ruiz, and she’ll tell you that the worthiest prospects for giving a teen their own car are families in rural areas, those without access to public transportation, or situations where an adolescent relies on a vehicle for work or essential activities.

“In these cases, the decision is driven by need rather than convenience, and families should weigh the benefits against the long-term costs,” she says.

The Bottom Line

As much as your teen may plead with you, don’t feel pressured to say yes to driving privileges or their own vehicle. Crunch the numbers carefully, weigh their level of responsibility and maturity, shop around for more affordable insurance, and give thought to alternative means of transportation that could save you big bucks.

This story was produced by TheZebra.com and reviewed and distributed by Stacker.