American Teens Driving Less as Costs Rise

As the costs of motor vehicles, gas, and car insurance have risen, fewer teenagers in America are getting licenses to drive.

The share of teenagers with driver’s licenses in the 16-19 age group declined from 64% in 1995 to just under 40% in 2021, according to the Federal Highway Administration.

There are other factors contributing to the decline in driving. Ride-hailing and home-delivery apps make cars feel less essential, The Hill noted. America’s urban centers are growing more crowded and less car-friendly. Teens are socializing more online and less in person. Many young people would rather bike or walk than pollute the environment.

The economics of finding a car, insuring it, and learning to drive can be daunting, especially for teens from lower-income families, The Hill observed. In urban areas, teens can take public transportation.

The decline in teen drivers reflects the impact of “graduated” licensing. Starting around 1996, states enacted new rules tailored to ease novice drivers onto the road. Teen drivers must now spend months gaining skills in low-risk settings before they gain full driving privileges.

Graduated licensing allows teens to practice driving with supervision before getting their license and restricts driving after they are licensed. Today all states have at least some elements of graduated licensing.

There are three stages in a graduated system: a supervised learner’s period; an intermediate license, which is granted after a young driver passes a road test and which limits driving in high-risk situations (e.g., at nighttime or with teen passengers); and a license with full privileges. All states allow at least some exceptions so that novices may drive for specified purposes during restricted hours.