Can You Get Insurance with a Learner’s Permit?

For teen drivers, a learner’s permit provides a framework for practicing their driving skills. But how do new drivers afford auto insurance while they’re still on a learner’s permit?

It’s possible for an unlicensed driver to purchase an auto insurance policy while carrying a learner’s permit, but such an insurance policy can be very costly. Instead, most families prefer to get coverage for an unlicensed teen driver through a parent’s policy.

Whatever path you pursue, here’s what you need to know about getting car insurance with a learner’s permit.

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Do you need insurance with a learner’s permit?

Whether you’re fully licensed or carrying a learner’s permit, you must have auto insurance to drive. You must carry a learner’s permit for anywhere from six to 12 months before graduating to a full license, depending on where you live. This means you’ll need six to 12 months of insurance coverage while learning the rules of the road under a learner’s permit.

In most cases, a teen driver on a learner’s permit will already be covered by their parents’ or guardians’ auto insurance policy. Fortunately, adding a teenager with a learner’s permit won’t increase your insurance rates in most states.^[1] Most states don’t allow insurers to raise parents’ insurance premiums until the new driver is fully licensed. However, this is legal in Illinois, Indiana, and Maryland.

If parents choose to specifically exclude a young driver from their policy, they may need to purchase separate insurance coverage for the new driver. However, this will generally be costlier than simply adding their teen to their policy.

How to get car insurance with a learner’s permit

Drivers with a learner’s permit can either get their own insurance policy or be added to their parents’ insurance policy. Here’s how each of these options works.

Get your own policy

It’s relatively rare to get your own car insurance with a learner’s permit. Generally, only teens living independently from their parents or adults and learning to drive for the first time may need this type of insurance. But if you can’t be added to your parents’ policy for any reason, you’re responsible for getting appropriate car insurance coverage.

Rates for learner’s permit drivers are likely to be quite expensive, however, since inexperienced drivers are more likely to get into accidents. In addition, teens younger than 18 can’t enter into a legal insurance contract on their own and will need parental permission to purchase insurance.

If you’re either an adult or a teen driver and live alone, you might not need a separate policy while driving on a learner’s permit. If you borrow someone else’s vehicle to practice driving, you’ll be covered by their policy, as long as they’re a licensed driver and in the car with you.

Here’s a look at the pros and cons of getting your own policy.

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Add a driver to a parent’s or guardian’s insurance policy

Adding a new driver to a parent’s or guardian’s insurance policy is the more common method of getting insurance coverage for drivers with a learner’s permit. Even first-time adult drivers are more likely to get added to a spouse’s or housemate’s insurance while learning with that person’s car, instead of getting their own learner’s permit insurance.

Simply adding a new driver to an existing policy usually doesn’t increase rates, which means this is a much cheaper option than purchasing a separate policy for a new driver. Additionally, many insurers offer a number of discounts that can help reduce insurance costs when you add a new driver.

In general, adding a driver with a learner’s permit to an existing policy will also be simpler logistically because most insurers have processes and procedures in place for adding a newly permitted driver to an existing policy. These insurers may not have policies in place for purchasing a new policy for such a driver.

How much car insurance does a teen driver need?

Every driver, both new and experienced, must carry their state’s required minimum liability insurance. Liability insurance only covers the costs of property damage and bodily injury to a third party.

If a driver carrying this kind of coverage causes an accident, the liability insurance pays for property damage and medical care for the other party involved. However, liability coverage won’t pay to repair or replace the at-fault driver’s car or pay for the medical care the driver or their passengers may need.

Teens driving in a no-fault state will also have to carry personal injury protection (PIP) coverage as part of their liability-only insurance.^[2] PIP insurance pays for your and your passengers’ medical care if you cause an accident.^[3]If you don’t live in a no-fault state, you may have the option of adding PIP insurance to cover the teen driver.

Liability-only insurance for teen drivers can be quite expensive compared to insuring older or more experienced drivers. Adding other types of coverage to the policy will increase your insurance costs, but it may be worth the price for the extra peace of mind. Here are some other coverages that parents of teen drivers may want to consider:

• 

  Collision coverage

  This kind of insurance pays for damage to your vehicle if you cause an accident. Without this coverage, you’ll have to pay out of pocket to repair or replace the car if you’re at fault.

• 

  Comprehensive coverage

  If your car is damaged or lost because of something other than a collision — such as theft or bad weather — comprehensive coverage will pay to repair or replace the vehicle. This coverage may not be as important as collision coverage for a teen driver unless you have reason to believe your teen’s car is vulnerable to theft or other non-collision damage.

• 

  Uninsured/underinsured motorist coverage

  This coverage kicks in if you’re hit by a driver who’s uninsured or who doesn’t carry enough insurance to cover your damages.^[4]

Cheapest car insurance for teen drivers

Finding the cheapest car insurance policy for your teen driver may require some comparison shopping. Getting quotes from a number of companies can help you find the insurer with the best coverage for you at the best rate.

Here’s a list of the most affordable quotes for teen drivers from several top insurers.

The below rates are estimated rates current as of: Thursday, November 30 at 11:00 AM PST. 

Data reviewed by Konstantin Halachev

Konstantin HalachevVice President of Engineering

• 7+ years experience in data analysis

• Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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Insurance Company	Average Monthly Quote
Auto-Owners	128
USAA	147
GEICO	153
State Farm	176
Allstate	229
Elephant	249
Mercury	256
Progressive	269
American Family	277
Nationwide	296
Liberty Mutual	316
Foremost	493

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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Discounts for permit drivers

Auto insurance companies traditionally offer customers a number of ways to discount their premium costs, and that goes for newly permitted and teen drivers, too. Here are several of the most common discounts available for new drivers:

• 

  Driver’s education discount

  Many insurers offer a discount for teens who complete a driver’s education or defensive driving course.

• 

  Good student discount

  If your teen maintains a B average or above, that could mean lower premiums from your insurance company.

• 

  Multi-policy discount

  Bundling your auto insurance with other insurance products could get you a discount on all your policies. If you’ve been dragging your feet on bundling, adding a teenage driver could be the incentive you need to take advantage of this discount.

• 

  Telematics insurance discount

  Installing a telematics device in your teen’s car will monitor their driving behavior and could lead to lower insurance premiums.

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