Handing a teenager the car keys is a major milestone, but it can also reshape the family budget almost overnight. Insurance, gasoline, maintenance, parking, repairs, and unexpected mishaps mean teen driving costs can reach far beyond the price of the vehicle itself. Experian reported that adding a teenager to an auto policy increased premiums by an average of $3,512 annually based on its 2025 data. Families can avoid many arguments by deciding who pays for what before the teen begins driving independently. These six money rules can help parents teach financial responsibility while keeping transportation expenses manageable.
