Do I Need Car Insurance with a Learner's Permit?

Learning to drive is exciting, stressful, and filled with new responsibilities. Whether you’re learning to drive or teaching someone else how to drive, there is so much to remember! Today, let’s focus on car insurance and whether you can get car insurance with a permit.

Can You Get Car Insurance With a Permit?

Yes, you can get car insurance with a permit. In fact, you must. Auto insurance is required for all drivers, whether they have a license or a permit.

Parents and guardians of teenage drivers should contact their insurance agent to discuss the various coverage options, including costs and potential discounts. During your conversation, discuss when to add your teen to your car insurance policy and the benefits of adding them to your policy versus purchasing a stand-alone policy for your teenager. Some insurance companies may cover a teen driver with a learner's permit if an experienced driver is in the car with them. Check your insurance provider’s rules.

Remember — a driver with a permit needs insurance. So, adults with a learner’s permit should contact an insurance company directly to arrange their own coverage. Expect to pay more to insure a teenage driver or a new driver than an experienced adult. This is because insurance rates are based on risk statistics, and teenage drivers are involved in more accidents than their adult counterparts. It’s not about age but driving experience, so inexperienced adult drivers should also anticipate paying more.

No state allows teenagers or adults with permits to drive uninsured. Anyone attempting to circumvent such laws is flirting with disaster. The cost of damages, injuries, and traffic fines can quickly outweigh the cost of obtaining proper car insurance.

Getting Insured When Learning to Drive

You must get car insurance with a permit. But where do you start? Parents with teenage drivers in the home typically have their own insurance company to call. New drivers who are adults should contact a reputable insurance company with excellent ratings.

Your car insurance agent will be able to tell you about your state's minimum insurance requirements and will help you determine the plan that works best for your situation. There are a variety of insurance plan options to consider, such as deductibles, limits, levels of coverage, and discounts for teen and new adult drivers. Factors that will influence the cost of your car insurance and that may trigger discounts include:

• Where you live
• How far the new driver will routinely drive
• The age and type of car the new motorist drives
• If the car has a high safety rating
• If a teen driver is a full-time student
• Taking a driver’s education course at school

Technology offers new drivers a selection of apps that can encourage safe driving in adults and teens. A quick Google search reveals dozens of apps that allow adults to get up-to-the-minute information about their teen’s location, the route they took to get there, and their speed. Some devices let you view your child in real-time as they are driving. It's also possible to prevent your teenager or any new driver from using their cell phone while driving — cutting down on potentially dangerous distractions.

Parental monitoring may encourage teens to adopt safe driving habits, keeping insurance rates low. Maintaining a clean driving record is the best way to get discounts on auto insurance.

Adding a Permit Driver to a Parent’s Insurance Policy

A driver with a permit needs insurance, but different circumstances dictate different paths. A teen driver can typically be added to their parent’s insurance for less money than establishing an independent policy. The parents simply contact their insurance company to provide the required information. If the new driver is an adult who no longer lives in their parent’s home, they will need an independent insurance policy. (An exception is often made if the adult is a college student). However, when the new driver is an adult who lives at home, there are additional options.

An adult with a driving permit who lives with their parents may drive the parent’s car or have their own car. If the vehicle is owned by the parent (or jointly owned with the adult child), it’s typically easy to add the adult to the parent's insurance as a listed driver. However, if the car is owned outright by the adult child, some insurance companies will allow household members to be covered by the same policy, perhaps qualifying for multi-car discounts. While other insurers may require the adult child to have separate insurance, their policy might be bundled with the parents’, qualifying for potential discounts.

Can You Purchase a Separate Policy?

As discussed, while all drivers with a permit need insurance, they can often be added to their parent’s policy. However, some cases do exist where a new or teenage driver may need to get a separate insurance policy:

• The permit holder’s parent or guardian has no insurance
• The permit holder is an adult building an independent insurance history
• The permit holder owns their car, and the parent’s insurer requires a separate policy
• The permit holder’s parent has a poor driving record, costing the new driver higher rates
• The permit holder’s poor driving record drives the parent’s rates too high
• The parents prefer to limit their liability exposure
• The permit holder has a different household and is not a student

How Much Car Insurance for a Learner's Permit Driver Do You Need?

So, you can get car insurance with a permit, but how much coverage do you need? Every state mandates minimum insurance coverage to legally drive on their roads. This minimum coverage applies to learner’s permit holders and licensed drivers alike. For instance, in California, starting on January 1, 2025, all drivers must carry at least:

• Minimum of $30,000 bodily injury insurance per person
• Minimum of $60,000 bodily injury insurance per accident
• Minimum of $15,000 property damage insurance

The minimum insurance coverage requirements vary by state. To be legally allowed to drive in your state, every driver must carry the state’s minimum insurance coverage.

Requirement for Learner’s Permit

Every state in the country requires those holding a learner’s permit to carry insurance. Beyond fulfilling the legal requirement, insurance is essential for protecting new drivers, their passengers, and other motorists.

Drivers with learner’s permits must also abide by their state’s additional restrictions on their driving. For instance, in California, permit holders can only drive with a licensed driver who is:

• Their parent or guardian
• A California driver at least 25 years old
• A certified driving instructor

Abiding by these restrictions and obtaining proper insurance coverage is critical when driving with a learner's permit.

Preparing to hit the open road on your own doesn't have to be a stressful time. Your car insurance company is one partner you can count on to help you navigate the ins and outs of insurance requirements for teenagers and new drivers. Call your insurance agent today to learn more about the steps you need to take.