Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Jan 16, 2021

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More teenagers are having to wait to hit the road, thanks to ongoing economic woes and the high cost of teenage car insurance.

A new study from Nationwide Insurance revealed that of all the parental concerns associated with teen driving, the cost of car insurance was the biggest.

Interestingly, the cost of car insurance was a larger concern than distracted driving, which can obviously endanger a teenager and you guessed it, lead to an accident and even higher car insurance costs.

“Insurance concerns are notable as 70 percent of parents of teen drivers insure their child on their auto insurance policy, experiencing a yearly average increase of approximately $800,” the Nationwide release noted.

The company also found households spent an average of $3,100 per year to allow their teenagers to drive, a figure that takes into account car insurance and gasoline costs.

Car insurance is so expensive for teenagers that half of parents have had to make financial cutbacks to allow their children to drive.

And one-third of parents of teen drivers said their children were “forced to get a job” in order to pay for their own car insurance.

All that said, it’s best to speak with an independent insurance agent who can shop your teenager’s car insurance rate (and even your own) with multiple companies simultaneously.

Doing so will allow you to see what discounts (good student discount, good driver discount, hybrid discount, etc) are available to your teen, thereby reducing your insurance premium costs.

Heck, it may even make sense for you to switch insurance companies to save money on the overall bill.

Read more: Am I required to have auto insurance on a teenager?