A driver’s license unlocks unimaginable freedom for a teenager — and might make parents cringe with worry. One set of issues surround the expenses, but paying for a child’s driver’s license can be a good investment.
Parents pay several one-time driver’s training and license fees. The fees listed below are for Olmsted County in southern Minnesota — contact your local Department of Motor Vehicles and local driving schools for costs in your area.
- Classroom Course: $220
- Behind the Wheel Training: $240
- Instructional Permit Fee: $13.25
- Driver’s License Fee: $16.25
- Total training and license fees: $489.50
A newly licensed female will also add $113 to her parents’ monthly insurance premium in the same location. The increase depends greatly on location and number and types of cars owned. Check with your insurance agent for rates for your specific situation and location.
Benefits of Paying for a Child’s Driver’s License
You might recoup the costs associated with your child’s license when you consider the conveniences it might afford:
- Designated Driver – A licensed teen driver provides a safe ride home after a night out, saving you money you’d otherwise fork over to Lyft or Uber.
- Medical Emergencies – In case of a medical emergency a teen driver replaces a very expensive ambulance ride to the emergency room. An ambulance ride without insurance coverage could cost $2,700.
- Time – Your time is invaluable; no matter how much you normally earn per hour, the time you save in not having to drive your teens everywhere would eventually recoup the costs of paying for your teen’s insurance premium and license .
Negatives of a Licensed Teen
Paying for a child’s driver’s license also has some potential problems:
- Insurance Increase Due To Accident – If your teen has an at-fault accident, good driving discounts will be dropped and insurance will increase significantly.
- Reduced Access to Car – Teens that drive will want to use the car often. Unless you incur the extra expense of buying another vehicle, there may be conflicts due to car needs.
Although paying for a child’s license and insurance premiums has some real down sides, the pluses have real value.
The greatest advantage may be your time. Instead of driving your teen around you regain hours each week to relax, get more done around the house, or make more money.
Readers, what’s your opinion on paying for a kid’s driver’s license? Would you or did you pay for your child to get his driver’s license, and why? Do you take advantage the positive aspects of having a licensed teen?
Read more great articles about driving:
- The Financial Cost of Texting and Driving
- Driving with Hands-Free Devices Still Puts You in Danger
- National Bike Month: Time to Take Your Bike for a Spin
- This Lender Repos 1 In 3 Cars It Finances — How to Avoid This Cycle