Car access and costs

Q: Car access and costs: what are the options?

There are 3 main approaches: Teen buys and insures; Shared family car, teen contributes; Parents provide.

Q: Car access and costs: what does the evidence say?

Evidence leans one way. Research or guidance points in a direction, but it's thin, small or correlational. Having their own car at the start of licensing is associated with higher crash risk, which an Australian cohort found persisted for about seven years into early adulthood, and a naturalistic driving study found vehicle ownership predicted riskier teen driving; low parental monitoring is one proposed explanation (I could read these only as abstracts or summaries). A review of parent involvement in teen driving supports clear rules and supportive monitoring alongside graduated licensing. Who pays for the car and insurance is a family finance question with no outcome research

Whether your teen has their own car or shares the family car, and who pays for the car and insurance.

Should we give our teen a car, and who pays for it?

In short: Parents choose between 3 main approaches: Teen buys and insures; Shared family car, teen contributes; Parents provide. Evidence: evidence leans one way. Research or guidance points in a direction, but it's thin, small or correlational. Best settled: teen.

Evidence: Evidence leans one way
Best settled: Teen
Part of: Learning & the wider world

Car access and costs: what are the options?

Parents usually land on one of these 3 approaches.

1. Teen buys and insures
The teen pays for their own car and insurance.
2. Shared family car, teen contributes
The teen uses the family car and pays toward gas or insurance.
3. Parents provide
You give the teen a car and cover the costs.

Car access and costs: what does the evidence say?

Evidence leans one way. Research or guidance points in a direction, but it's thin, small or correlational.

Having their own car at the start of licensing is associated with higher crash risk, which an Australian cohort found persisted for about seven years into early adulthood, and a naturalistic driving study found vehicle ownership predicted riskier teen driving; low parental monitoring is one proposed explanation (I could read these only as abstracts or summaries). A review of parent involvement in teen driving supports clear rules and supportive monitoring alongside graduated licensing. Who pays for the car and insurance is a family finance question with no outcome research

Sources

What else is worth knowing?

A car, insurance and gas are significant costs. Families differ on whether a teen should pay, contribute or be provided for. This connects to how you handle money and responsibility generally.

Questions to ask each other

Who should pay for a car, insurance and gas?
Would our teen contribute with a job?
What happens if they have a crash?

More in The teen years

First published 2026-10-03. Last updated 2026-10-05. General information, not medical advice.