The best car option for my teenager?

We have a teenager who just got their license (they're 17 and waited a little bit after their birthday to save money and study for the driving test) and we're trying to figure out what kind of car to get them started with. They've been saving, and we said we'd help, too, along with their part-time job income. Should we buy new (probably not realistic), buy used, or even consider a lease? A specific type of car that's affordable to get insurance? We want something safe and not an old beater, but we're also trying to keep insurance manageable since it's high even for us as adults. Thanks.

From an insurance standpoint, the answer is pretty clear: a safe, reliable used car is almost always the right call for a teen driver, and the cost difference is significant. But before diving into the options, it's worth a quick pause to consider whether your teen actually needs their own car at all.

Teen drivers are statistically the riskiest group on the road, which means they're already expensive to insure before you factor in what kind of car they're driving. According to our data, the average annual premium for teen car insurance is around $5,340 for males and $4,738 for females (around $400 to $500 per month).

Here's why each option plays out differently from an insurance perspective:

New cars cost more to insure because they carry higher replacement and repair costs. If you're financing, your lender will require full coverage, which adds collision and comprehensive to an already steep teen driver rate. With the average new car price around $49k, plus a teen driver's increased risk, it doesn't make financial sense for most families.

Leased cars come with the strictest insurance requirements. Lessors typically require higher liability limits and often mandate gap coverage on top of full coverage. That's a lot of required coverage for someone who is still learning the ropes.

Used cars offer the most flexibility, and the insurance advantages are real. A modestly priced used vehicle has a lower replacement value, which helps keep insurance costs down whether or not you're financing it. The type of car matters just as much as the age, though. Insurance costs can vary dramatically by make and model, with some vehicles costing five times more to insure than others. For instance, Nissan tends to run higher, whereas Ford tends to be lower.

A few practical rules of thumb when shopping: stick to something easy to drive and maneuver, avoid sports cars or those that are heavily customized because they're more expensive to insure and repair. Good fuel economy is worth considering too, especially if your teen is covering their own gas. A reliable domestic sedan or small SUV will check most of these boxes and land on the more affordable end of the insurance range.

A couple of other things worth asking about: telematics or usage-based insurance programs that reward safe driving and good student discount to help save. With car ownership costs rising across the board in 2026, it can literally pay off to take your time, do some research, and consider your options. I hope this helps!