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New drivers with a learner’s permit should have car insurance while learning to drive, even though they are not yet fully licensed.
The good news is that teenage drivers with a permit may already be covered by a parent’s car insurance policy. If you are the parent of a freshly minted driver with a permit, adding them to your policy likely will not cost you anything. The rate increase will come later when the young driver gets their license.
Do You Need Auto Insurance With a Learner’s Permit?
Every driver on the road should have car insurance, including those driving with a learner’s permit.
Depending on the state, a teenager with a learner’s permit may not be legally required to have car insurance. But insurers typically require all drivers in your household to be listed on your insurance policy.
If someone with a learner’s permit is driving your car, it’s best to inform your insurance company. If you don’t inform your insurer and your teen gets in an accident, the insurance company could deny your claim.
When your child is ready to get their learner’s permit, call your insurance company to let them know. If, however, you do not want your teen on your policy, you should exclude the driver from coverage.
How Can You Get Insurance with a Permit?
Drivers with a permit can be added to a parent’s car insurance policy or they can buy their own.
Adding a permit holder to a parent policy
If your teen is a new driver who still lives at home, adding them to your car insurance policy is the easiest way to secure coverage.
Adding a driver with a permit to your existing policy likely won’t cost you anything until the driver gets their license. So, if your teen takes two years to learn how to drive with a permit, you can enjoy that time without an increase in your car insurance rate.
Related: Best cheap car insurance for teens
Buying your own car insurance policy
First-time drivers can buy their own car insurance policy, but this is usually more expensive than adding them to an existing parent’s policy.
Buying your own car insurance policy may be your only option if:
- You are an adult driver with a permit
- You are a teenage driver whose parents do not have car insurance
- You are a young driver who does not share a permanent address with your parents
- You are an emancipated minor
- You’ve bought your own car
How Much Car Insurance Do Learner’s Permit Drivers Need?
Drivers who are learning with a permit will need to meet state minimum car insurance requirements, either through their parent’s policy or their own. Most states require a minimum amount of liability auto insurance, and some have additional requirements, such as personal injury protection coverage.
For instance, Florida requires drivers to have at least:
- $10,000 in liability coverage for bodily injury damages for one person
- $20,000 in bodily injury coverage per accident
- $10,000 in liability coverage for property damage
- $10,000 in personal injury protection coverage
If a new driver causes an accident, having only the state minimum amount of car insurance will likely not be enough. As a good rule of thumb, you should make sure to have enough liability insurance to cover what you could lose in a lawsuit after a car accident.
Related: How much car insurance do I need?
How Much Is Car Insurance for New Drivers with a Permit?
If you’re a parent, it likely won’t cost anything to add a new driver with a permit to your car insurance policy. But, once the driver becomes fully licensed, your car insurance premium will increase significantly.
Average rate increase to add a teen driver to a parent policy
How Can Parents Save on Car Insurance?
Parents adding a teen driver to their policy can save on car insurance by:
- Shopping around. To find the best deal, take the time to compare auto insurance quotes from at least three or four different companies.
- Signing up for a driver’s education program. Some insurers offer programs that help teen drivers and offer discounts for the teens who complete them.
- Checking for discounts. Many insurers offer car insurance discounts that apply to teen drivers, such as good grade discounts and student away from home discounts.
- Bundling your policies. You could save on premiums by buying auto insurance and homeowners insurance (or renter’s insurance) from the same insurer.
- Driving safely. Insurance rates tend to go up after a speeding ticket or accident, so encourage safe driving habits for the whole family.
Best Car Insurance Companies 2022
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Car Insurance for Permit Drivers FAQ
Does it make sense for a permit holder to buy their own car insurance?
No, it does not make sense for a permit holder to buy their own car insurance unless they have to.
Scenarios where a permit holder may be required to buy their own policy include if they don’t have a parent or guardian with auto insurance, they no longer live with a parent or they buy their own car.
Related: Tips for first-time car insurance buyers
When should a permit holder be added to a parent’s car insurance policy?
When your child gets their learner’s permit, you should notify your insurance company. As a driver using your car with your permission, they may be covered under your policy at no charge.
Once your child gets their driver’s license, you can add them to your car insurance policy as a listed operator. At that point, your insurance rate will increase.
Related: Best car insurance for teens
How much will a policy increase by adding a teen driver?
The average cost of adding a young driver—age 16 to 21—to a married couple’s car insurance policy is $1,951 a year, according to a Forbes Advisor analysis of rates from top 11 insurance companies across the nation.
With that in mind, those hoping to find the best cheap car insurance for teens should shop around and compare premiums with at least three or four different insurance companies.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.