Are you a new driver or are you going to have a new driver in your family? If so, you may be wondering what the average cost of a new driver is. Consider the following things a new driver will have to pay for.
Permit and License Fees
Before you have even had a chance to get behind the wheel you will need to shell out some money. To get your permit you will need to pay a fee. The fee varies by state so check your local DMV for the cost. After you have become a confident driver and are ready for your driving test you will need to pay again to get your license. Again, check with your DMV to learn the cost for your state.
Vehicle
To be a driver you need something to drive. Many new teenage drivers have their eyes on their own set of wheels. Buying a car new tends to be a large investment and is often something a teenager cannot afford. Some families select to just share the vehicles the parents drive. Others search for an affordable used car. A few parents will buy their teenager a new set of wheels. As you'd expect, the cost of these three options varies from free to many thousand dollars so the route you choose will set your cost.
Repairs
Purchasing a used car is often done because it is cheaper. It is a good idea to have the car inspected by a trusted mechanic before buying it. Sometimes a used car ends up costing more due to unexpected repairs. In any case a new or used car will need repairs at some point. It is wise to have at least a few hundred dollars saved up in case you need new brakes or tires or if another issue pops up.
Insurance
Once you have obtained your driver's license you will need to notify the insurance company. If you will be sharing the family vehicle the cost of insurance for the family will increase. This is because a new, inexperienced driver is more likely to have an accident than someone who has been driving for many years. If the new driver is a teenager the cost will be even higher. While the amount of insurance premium increase will vary depending on which state you live in, a Forbes article indicated that the average increase was 79%. The increase is higher for male drivers than female drivers.
If you buy a car for the new driver the insurance company will have to get notified and the car added to the family policy. Again, the insurance premiums will increase.
Inspection and Registration
If your new driver will be purchasing a used or new vehicle they will likely have to deal with inspection and registration. The specifics of these two items vary from state to state.
Seventeen states require cars to be inspected either every year or every other year. In some cases, the rules vary within a state so it depends on where the driver lives. For those locations where an inspection is required, there is a cost to have the mechanic conduct the inspection. Often this is not too pricey. Of course, if they find any issues that prevent the car from passing inspection the cost of repair to get the vehicle back on the road may be significant.
States require registration and the car owner must get license plates. Registration often has to be renewed every other year and requires the car owner to pay a fee.
Gas
A new driver will need to put gas in their vehicle. To estimate the cost of gas you will be using every month, you need to estimate how many miles you will be driving and the gas mileage your vehicle achieves. If you will be commuting a long distance to school or a job you may find you have to fill your tank more than once a week. This can result in hundreds of dollars in gas costs. Those who just travel locally will find the gas cost is not as significant.
While most parents look forward to their child being able to drive themselves to and from sports practice, they are often shocked at the costs associated with having a new driver in the family! It is good to understand the details so you can budget accordingly.