How to Save Money When Your Teen Starts Driving

Aug 10, 2023 2 min read

When the Driver’s Ed exams are passed and the three-point turn is mastered, your teen will likely be eager to hit the road right away. Instilling responsible driving and spending habits will go a long way towards setting them up for success as the next milestone approaches and they get ready to leave home.

Before you hand over the keys or head to the dealership, take some time to understand the financial implications of having a new driver in the family, and try to include your teen in the process from the get-go. Here’s a few ways that may help you save money when buying a car for your new driver.

How to Save Money on a New Car

Even if the car isn’t actually brand new, it’s important to remember that it’s new to you and your teen. There may be a steep learning curve as you and your teen wade through the worlds of insurance, titles, registration, maintenance and gas mileage. Here’s some steps that may assist you in saving money when car shopping for your new driver.

Look Beyond the Sticker Price

It can be tough trying to balance safety and cost when it comes to buying a car for your teen — you want them in the safest ride possible, but you also need to stay on budget. When looking at affordable cars, keep an eye out for models with desired safety features and reputations for relatively low maintenance costs. 

With over 10% of teen driving deaths involving distracted driving, it’s essential to teach your teen driver the importance of being aware of their surroundings when driving. Safety features like a rearview camera, blind spot detector and lane departure warning sensors can help prevent costly and dangerous accidents. However, safety goes beyond features in the car. Consider having a discussion around phone usage while driving as this can be extremely dangerous. The Bureau of Transportation Statistics reminds us that hand-held phone usage is banned in 24 states.  

Consider the Recurring Costs

One of the best ways to buy a car for your teen is with a focus on the future. If you choose a car based on price only, you run the risk of owning a car that may not include the desired safety features or that needs constant repairs which can also mean a higher insurance cost. If your model of vehicle experiences higher than average accidents or problems, insurance companies may raise the rates to help absorb some of that cost. 

Take Advantage of Insurance Discounts

Teens and young adults are typically more costly to insure, so be sure to ask your agent what discounts are available. At Farm Bureau Financial Services, we offer a variety ways to save on your auto insurance:

  1. Driveology® is a program designed to reward drivers with a discount based on driving behavior. From your minivan to the latest EVs, enrolling is easy. New participants earn a 10% discount just for signing up. Savings are recalculated after 91 days of driving in the program and again at each annual renewal.  
  2. Our Safe Young Driver program gives young, inexperienced drivers the chance to build skill and confidence behind the wheel. Young drivers (age 25 or under) who complete our Young Driver Safety program and meet just a few other basic eligibility requirements can qualify to receive the Safe Young Driver discount.
  3. With the Good Student Discount, your teen’s hard work at school can also earn them a discount on their car insurance. Your student can help you save if they maintain a "B" average or higher.

Discover Even More Ways to Save

We offer a number of discounts to help you save on your auto insurance. Talk to your Farm Bureau agent to learn more about the discounts that could be available for you.

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.