Auto Insurance for Learner’s Permit Drivers (2024)

Most states require drivers to carry a minimum amount of car insurance, but having coverage is always a good idea, no matter where you live.

Finding cheap insurance for permit drivers might seem complicated, but learners don’t necessarily need their own policy. Instead, a parent or guardian can add teen drivers to an existing policy.

Teens and new drivers significantly benefit from car insurance because they’re statistically more likely to get into accidents or file other claims. Finding cheap rates for teens can be challenging, but there are plenty of ways to save.

Read on to learn more about permit driver insurance, then compare quotes with as many companies as possible to find your lowest rates.

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Does a driver with a learner’s permit need insurance?

All drivers benefit from the financial security car insurance offers, including permit drivers. A permit driver can’t legally drive without insurance if you live in a state requiring drivers to carry insurance.

The good news is that most drivers don’t need individual permit driver insurance. Instead, the policy of the car they practice in often covers them.

Usually, insurance companies don’t require you to add a new driver to your family policy until they have a license. However, you may need to notify your insurer when a permit driver is about to start using your car.

Regardless of whether you need to list a permit driver on your policy, your rates won’t change until the new driver gets their license.

While it might be a bit of a hassle, you should always contact your insurance company and ask if you need to list a permit driver. Insurance companies can deny claims if a driver isn’t correctly listed on the policy, leaving you financially responsible for any damage after an accident.

Can you get car insurance with a permit?

Since minors can’t legally be held accountable in a contract, insurance companies rarely sell policies to teens. You can find insurance companies accepting permits in some situations, though.

The most common and cheapest way to insure a new driver is to add them to a parent or guardian’s policy. Allowing teen drivers to join your policy rather than start their own can cut their insurance rates in half.

However, not everyone has the opportunity to join a parent or guardian’s policy. For example, if you’re trying to figure out how to get car insurance with a permit, you’ll need to bring a parent or guardian to sign their consent.

Only emancipated teens can sign up for car insurance without the signature of a parent or guardian.

What if you’re an older driver with a permit?

While joining a parent or guardian’s insurance policy is the best way to save money for permit drivers, not all learners are teens. People learn how to drive at all stages of life and there are ways to find cheap car insurance for permit drivers, no matter your age.

An excellent start is with a partner or spouse you live with. They can likely add you to their policy, though their rates will increase. However, most insurance companies offer discounts to married couples, which you might qualify for even as a new driver.

Getting car insurance with a permit is more difficult if you live alone, but you aren’t without options. Most major companies won’t offer you insurance until you have a driver’s license, but you’ll probably be able to find a local company in your area that will work with you.

Can you buy a car with just a permit?

Drivers with a permit can certainly buy a car. However, just because you can, doesn’t mean it’s necessarily easy.

You won’t be able to take out a car loan or lease if you’re under 18 because minors can’t legally enter a contract. However, you can buy a car if you pay cash.

While buying a car is possible, registration is another hurdle stopping you from driving a new vehicle. You won’t be able to register a car until you have a driver’s license. Additionally, most states require you to buy car insurance for a new car before registering it.

How much does insurance for teens cost?

Although getting your permit is an exciting milestone for many teens, it also comes with high insurance rates. See below for an idea of how much teens pay for car insurance.

The average annual rate for teen drivers ranges from $4,000 to over $8,000. So, it’s crucial to compare quotes when looking for a new policy — rates vary dramatically, and you might overpay by selecting the first company you find.

Here’s a look at the U.S. average cost of full coverage auto insurance rates for teenagers.

However, a parent or guardian who adds a teen to an existing policy can cut rates in half. See the table below for the average cost of adding a teen driver to an existing policy with the top insurance companies.

The average cost of a family policy after adding a teen driver ranges between $1,500 and $4,000.

Why do teens pay higher rates for insurance?

Insurance companies determine how much to charge for coverage based on your riskiness. Therefore, the more likely you are to file a claim, the higher your rates will be.

Statistically, teens are one of the riskiest groups to insure. While there are various factors, these are the most common reasons why teens pay more for insurance:

• Driving experience. New drivers don’t have the experience to rely on when they meet a tricky situation on the road. Unlike older drivers, teens often struggle to handle bad weather, construction, or other road obstacles.
• Distracted driving. Teens are more likely to drive while distracted, primarily due to passengers and phone use.
• Reckless driving. Teens — especially males — are statistically more likely to speed or act impulsively.
• More accidents. Lack of experience and impulsive driving behavior culminates in three times as many accidents as older drivers.

Due to these risks, insurance companies charge much higher rates for teens. However, other factors affect the price you’ll pay. For example, female teen drivers pay much less for insurance than their male counterparts since young male drivers engage in risky behavior more often.

The good news is that your rates won’t stay high forever. Rates tend to drop around 25 if your driving record is clean and decreases as you age. There are also plenty of car insurance discounts for young drivers.

What car insurance discounts can teen drivers get?

It’s important to look at car insurance discounts when considering an insurer, and it’s especially vital for young drivers. Luckily, most insurance companies offer discounts to help young drivers save.

Whether you’re buying a new policy or adding a teen to an existing plan, ask an insurance representative about the following discounts:

• Good student. High school and college students who maintain a GPA of 3.0 or higher are often eligible for a good student discount.
• Driver education. Teens who complete an approved driving course can lower their rates. While this discount will eventually expire, it usually lasts around three years.
• Tracking devices. Most companies offer usage-based insurance discounts, which track how often your drive and your driving habits. Safe drivers can earn significant savings by signing up.
• Student away from home. Many companies offer a discount if you attend a school more than 100 miles from home and leave your car behind.
• Pay upfront. Most insurance companies will give you a small discount if you pay for your entire policy at once rather than monthly.

While discounts are one of the best ways to save money, there are a few other things you can do to keep costs down. For example, choosing a safe, inexpensive car is a great way to lower your rates.

Finding the best car to take a driver’s test in that remains reliable can also help lower teen car insurance rates.

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Find the Best Insurance for Young Drivers Today

Whether you get your learner’s permit the first day you legally can, or as an adult, the easiest way to ensure you have the coverage you need is to join an existing policy. However, not everyone has this opportunity and must find their own insurance.

Comparing companies is integral to finding affordable rates if you need to find a new policy. Whether you want to add a teen driver to your policy or you need new insurance for yourself, looking at rates from multiple companies will help you find the lowest price.

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