Car Insurance for Permit Drivers: 2019 Quotes and Discounts

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If you drive, you know that car insurance is a mandatory expense. But what’s there to do if you or your loved one is learning how to drive, but not yet fully licensed?

Getting Your Permit Driver Behind the Wheel

When your teen (or another member of your family) passes their learner’s permit test, your insurance provider isn’t notified in any way. You must contact your insurance company yourself and let it know that someone on your policy now has their permit and will be driving your vehicle for practice.

While there is no special insurance coverage for permit drivers, your agent or insurance company will be able to discuss what to expect and possible discounts once they get a driver’s license and you add them to your car insurance policy as a fully licensed new driver. Drivers under the age of 25 face higher premiums, so adding your teenage driver to the family auto policy will save you (and them) the most money by granting you access to multi-driver discounts.

Remember, Insurify allows you to build your dream policy and compare the cheapest quotes for you and the permit drivers on your insurance plan. You can even unlock discounts that are available to you and your permit driver (more on that below)!

Cheapest Car Insurance Quotes for Permit Drivers

Insurify crunched the numbers and determined the cheapest and most expensive insurance companies for permit drivers. See which carriers have the lowest and highest basic free quotes for learner’s permit insurance:

Cheapest Companies

Insurance CompanyLowest Rate
Kemper$38/month
Dairyland$42/month
First Chicago$49/month
Plymouth Rock$50/month
SafeAuto$51/month

Most Expensive Companies

Insurance CompanyLowest Rate
Liberty Mutual$314/month
Arrowhead$272/month
Aggressive$233/month
Metromile$218/month
Safeway$172/month

The easiest way for new permit drivers to save on insurance costs

If your teen driver owns their own car and their name is on the title, they may need to have an auto insurance policy. Here’s how to keep those insurance rates as low as possible.

Safe Driving Saves Money

  • Enroll your teen in a driver’s education and driver training course. Not only will they learn how to stay safe on the road, but they’ll also become eligible for a driving course discount.
  • Encourage your child to maintain a B average or higher in school. Auto insurance companies offer good student discounts to young drivers (typically this means drivers under the age of 25).
  • Make sure your teen follows your state’s specific rules for permitted and newly licensed first-time drivers, such as only driving with immediate family for the first six months that you have your full license. You don’t want points on their driving record that will lead to even higher premiums.
  • If your teen won’t be driving very often, consider putting them down as an occasional driver on your policy. It can be cheaper to add such a driver to their parent’s policy than getting them one of their own.
  • Consider increasing your liability coverage so that if your teen is found at fault in an accident, you’ll be covered and won’t have to pay out of pocket for damages or medical bills.

Specifying Your Living Situation

  • Where your house is located can affect your auto insurance rates. When setting your premiums, car insurance companies consider the crime and traffic rates of the zip code where your car spends most of its time.
  • If your home is located in an area with high rates of both crime and traffic, you may want to add on comprehensive coverage and/or collision coverage, which will cover you in the events of theft or damages. You can even unlock a discount if you buy an anti-theft or tracking device for your car.
  • Consider raising your deductible so that your monthly payments will be lower. However, you should only raise your deductible to an amount that you’d be able to pay out of pocket on short notice.

Car-Buying Tips for Permit Drivers

  • Consider buying your teen a vehicle that has up-to-date safety features. Cars that include full-front airbags and restraint devices can qualify you for safe driving discounts.
  • Along with shopping for a car with safety features, remember that reliable vehicles such as family sedans are usually cheaper to insure, especially if they’re used. Convertibles are cool, but higher insurance premiums aren’t.

Permit Drivers vs. Other Peers: Who Pays More?

You might identify with some, all, or none of these driver profiles. Regardless, these other quotes should give you an idea of the best car insurance rates you could encounter in your comparison shopping journey.

Car Insurance Discounts for Permit Drivers

Cheap car insurance is tough to find for new drivers, but discounts can help. Here are the average rates of discounts for which a permit driver might be eligible:


Browse, Compare, Discover with Insurify today!

Wendy Connick is the founder and owner of Connick Financial Solutions, a provider of tax and bookkeeping services and a QuickBooks Online Certified ProAdvisor. A long-time freelance writer, she specializes in business and finance articles on subjects including taxes, investing, and retirement. Wendy is an Enrolled Agent (EA), the only federally licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS. She is a member of the National Association of Enrolled Agents and a certified volunteer for VITA (Volunteer Income Tax Assistance), an IRS-sponsored program to provide free tax help for low-income individuals and families.