What Type Of Insurance Is Best For A Learner Driver

by | Oct 1, 2020

You may be a parent with a child new to driving or you may be an adult learning to drive for the first time. Regardless of your situation, driving can be really scary when you first start. Even with the best driving instructors, things can happen fast on the road.

We all know that it is prudent to have insurance coverage, but it can be an expensive and frustrating process!  You want to be sure you have all the information to protect yourself, your car and a potential new teen driver. 

Learners Permit Insurance Information

There is a ton of information online about the insurance coverage needed for a learner driver. Here are the things you should actually know when you’re getting started. 

  • Every driver whether in possession of a license or a permit legally has to have the legal minimum of car insurance required in your state.
  • Teen drivers are able to be added to their parents policies if they live under the same roof
  • If your insurance company will not allow the teen driver to be covered under their parents policy, they must get a policy of their own. 
  • Teenagers are able to apply for temporary insurance policies until they become eligible for their license. 
  • Learners permit insurance policies are expensive and average $650 per month

So the short answer to your question regarding  if your teen driver needs to have insurance is YES, they definitely do. However, they don’t necessarily need to have their own policy. 

Can You Drive With A Permit Without Insurance?

Driving a vehicle without insurance is illegal. Even with a licensed and insured driver in the car the person behind the wheel must have a permit and their own insurance coverage. 

Why Are Drivers With Learner’s Permits So Expensive To Insure?

It is true that it is extremely expensive to insure a teenage or new driver who only has a permit. As drivers graduate to their license, sadly, you won’t find a substantial drop in price for insurance. This is because of statistics. Insurance policies are made by establishing how much risk the insurer is at and pricing the monthly premium accordingly. The risk is essentially how likely you are (as a statistic) to get into an accident and how much it will cost to fix the repairs. 

The insurance agency will factor in all sorts of things from how much you drive to, what your gender is, how old you are, and of course what your driving record looks like. Teenagers are 4x as likely to be involved in a car accident than a person over the age of 20. Men are more likely to get into car accidents than women are, and because of this men pay more money per month for insurance on average than women. 

Why Insure A Learner Driver

As we learn to drive, we are bound to make some mistakes along the way. Usually these mistakes can be pretty careless, like backing over the neighbors mailbox, but other times they can be more serious like a fender bender and even a full on car accident. Mistakes happen whenever we learn something new and even the most precautious people can be subject to car accidents when learning to drive. 

We insure learner drivers so that they are covered when these mistakes happen. Most learner drivers are teens and the average teenager doesn’t have the kind of money to handle the cost of a car accident. 

Teen Driver Specific Info

Does My Teenager With Their Learner’s Permit Need Their Own Insurance Policy?

Not Necessarily. In most cases, your teednager can simply be added to your policy and your insurance agency won’t raise your rates. In some cases they will need their own policy, this includes:

  • If your teen lives at their own residence
  • If your teen owns a separate vehicle that they want to drive

In the case that your teen does live alone you will have a very difficult time finding an agency willing to insure your teenager. 

Frequently Asked Questions Concerning Learners Permits

How much is car insurance for new drivers? 

  • Fresh drivers are typically the most expensive to insure, and this is for good reason because they also tend to get into the most car accidents. With time, new drivers get more experience and become better and safer drivers. If you are adding a teen driver to your existing policy, you may end up not paying a single dollar more to add them. If they fall under the scenarios where they must get their own policy, expect to pay an arm and a leg for insurance. New drivers pay on average $650 per month for insurance. OUCH. 

Do I need to add my teen driver to our families auto insurance policy?

  • Yes, you need to call your insurance company and let them know that someone else who is not on the current policy will be driving the vehicle, and that that somebody is a teen driver with a learners permit. In most scenarios it is really easy to add your teenager to your existing policy without raising your rates. There are some scenarios where your insurer will want your child to have their own policy. Call them to find out what the details of your specific situation are. 

What if my insurance company requires my teen driver to have their own insurance?

  • If you are insured with a company that will not cover your minor, you should ask the agent how much it would cost to take out a temporary policy for the months before your student driver takes their driving test. On average it is going to run you around $650 per month which is steep.

If you think your insurer is being unfair with their pricing, ask them to hold the data for this quote while you think about what you want to do. In the meantime you’ll want to call around to other insurance companies to see if you can find a more reasonable option.

What if my learner driver moves out of the house? Can they still be covered under my policy?

  • Typically the answer is no, though it will vary from insurance company to insurance company. With most insurers, they only allow a dependent minor driving the family car to be covered under your policy. They can’t have their own car or live in their own residence. Once those events take place they will be required to have their own policy in their name covering whatever vehicle they will be driving. 

Do I need to inform my insurance company my teen driver just got their permit and will be driving my car?

  • So with most insurance companies, they are going to cover your teen driver in the occurrence of an accident whether you informed them or not. However in some cases, certain insurance agencies are not going to cover the damages of a driver who was not on the policy, even a minor who lives under the same roof as their guardian whose car they were driving. 

These are going to typically be the same insurance agencies that require you to have a separate policy for your minor. It is in your best interest to eliminate the gray area. Give your insurance company a call and determine how you need to proceed with insuring your teenager. 

Can you register and insure a car with a driver’s permit?

  • You can buy a car with a driver’s permit and you can get insurance, but in order to register a vehicle you must be a fully licensed driver. 

How can I lower my insurance rate?

  • You can lower the insurance rate of a teen with a driver’s permit by adding them to their parent’s policy. Alternatively, the driver can go to a voluntary driving school that is accredited, and take a drivers education course. Most of the time, a new driver’s rates are much higher because they don’t have experience. In taking a driving course, you are showing your insurance agency that you have more experience and deserve a lower rate. To find out if your insurance agency operates in this way, give them a call. While you are on the phone, ask your agent if they have any names of accepted driving schools in your area. 
  • Most insurance agencies also offer a good student discount to new drivers. If you are consistently on the honor roll it wouldn’t hurt to call your insurance company and find out. Be prepared with a current record of your transcripts to provide as proof. 
  • Drive a less expensive vehicle. The more your car is worth, the more expensive it will be to insure. 

What insurance companies will cover a new driver who only has a learner’s permit?

  • Most insurance companies will insure a driver with a learner’s permit. Some examples include but are not limited to
    • Geico learner’s permit insurance
    • Progressive learner’s permit insurance
    • State Farm learner’s permit insurance
    • USAA learner’s permit insurance
    • Travelers learner’s permit insurance

Should I purchase additional insurance?

  • This question is really a personal preference and will vary from situation to situation. There are quite a few different types of insurance, from collision which is what we think of as standard car insurance, to comprehensive insurance which will cover you in non driving related incidents. Whether you feel your car is valuable enough to insure more is up to you. 

For even more information you can check out this video

How Can I Help My Learner Driver Be The Safest Possible Behind The Wheel

While there is inherent risk any time any of us gets behind the wheel to drive, there are things that you can do to protect a new driver, whether it is yourself or your child.

  1. Practice practice practice! Learning to drive in a low stress environment is really important. Start on streets that have a low population of cars and people. If you can get out into the country, that would be best. You can also drive in your neighborhood depending on where you live. If you are a parent teaching your teen, be patient and encouraging. 
  2. Make sure the new driver understands the Graduated Drivers License Laws of the state where they are learning to drive. Each state is going to have its own laws of how vehicles should safely operate when on the road. It is so important to know these laws front and back in order to feel confident on the road. Every state has a state funded drivers education program that you can sign up for. These are great ways to learn the information that you need. 

What Discounts Do Insurance Agencies Offer? 

Most insurance agencies will offer these three discounts to student drivers

  1. Good student discount: typically you will need to average B grades or a 3.0-grade point average to be eligible for this discount
  2. Part-time driver discount: this is offered to college students who go to school without a car and only drive when they are at home on breaks.
  3. Safe driving discount: offered after the completion of a driver’s education course. 

How To Pick The Best Learner Vehicle

Picking a car for your teenager to learn to drive in can be tricky. You don’t want to put them behind the wheel of anything super valuable or flashy for fear that they may end up totaling it. At the same time, you want them in something safe. If your family has multiple cars and your teen will be driving one of these while they learn, pick the one that most closely fits this build. 

If you are buying your teenager their own car to use, you may still want to follow this safe, but affordable guideline. The ultimate choice is up to you and you know the responsibility of your child better than anyone. 

Always Encourage Your Teenager To Wear Their Seat-belt

One of the most common ways that teenagers die is in car accidents where they are not wearing their seatbelt. I have seen instances where this has occurred and it completely rips apart the family. Teach your children at a young age to wear their seatbelts, it may end up saving their life. 

Average Annual Insurance Premiums For A 16-Year-Old Male

Allstate-$8,168

Farmers-$8,166

GEICO-$4,487

Liberty Mutual-$7,088

Nationwide-$3,852

Progressive-$10,846

State Farm-$7,322

USAA-$4,056

Average Annual Insurance Premiums For A 17 Year Old Female

USAA-$4,807.54

Geico-$5,653.55

Nationwide-$5,756.37

State Farm-$5,953.88

Farmers-$8,521.97

Progressive-$8,689.95

Allstate-$9,282.19

Travelers-$9,307.32

Liberty Mutual-$11,621.01

Average Annual Insurance Premiums For A 25-Year-Old Female

USAA-$1,988.52

Geico-$2,378.89

Nationwide-$2,686.48

State Farm-$2,335.96

Farmers-$2,946.80

Progressive-$2,697.73

Allstate-$3,424.87

Travelers-$2,325.25

Liberty Mutual-$3,959.67

Average Annual Insurance Premiums For A 25 Year Old Male

USAA-$2,126.14

Geico-$2,262.87

Nationwide-$2,889.04

State Farm-$2,554.56

Farmers-$3,041.44

Progressive-$2,758.66

Allstate-$3,570.93

Travelers-$2,491.21

Liberty Mutual-$4,503.13

PMC is now offering insurance!

On average, you can save between 15 and 25 percent and in several cases as much as  50 percent on your auto insurance. With the rising cost of insurance today, it’s important to have an agent who is experienced, knowledgeable, and dedicated to helping you find the most discounts and the best coverage available for all your insurance needs to protect your most valuable investments.

Our agents are dedicated and will continue to find you the best rate available at the time of your renewal. So if you are tired of paying high insurance rates or simply just can’t find the time to shop around, give us a call to speak to one of our licensed professional insurance agents to receive a free no obligation, no pressure quote.

Protect My Car provides consumers with extended auto warranty plans that have real coverage for vehicles that are no longer covered by their manufacturer’s warranty. Whether your vehicle was purchased new or used, if your manufacturer’s warranty is about to expire, or has already expired, an extended auto warranty plan can save you thousands of dollars in repair bills. Since the majority of vehicle repairs happen 3-5 years after the original purchase date, which many times is outside of the manufacturer’s warranty coverage period, leaving you responsible for paying the full repair bill. However, when you purchase a policy from Protect My Car, you could pay as little as $100.00 for your major repairs. That’s a lot of savings!

References

https://www.nhtsa.gov/road-safety/teen-driving
https://www.4autoinsurancequote.com/learning-center/do-you-need-car-insurance-with-a-learners-permit/#:~:text=If%20you%20have%20a%20learner’s,your%20own%20auto%20insurance%20policy.
https://www.allstate.com/tr/car-insurance/learner-driver.aspx
https://www.carinsurancecomparison.com/do-you-need-car-insurance-for-learners-permit/
https://driversed.com/trending/car-insurance-learners-permit-california
https://www.nationwide.com/lc/resources/auto-insurance/articles/best-car-insurance-young-drivers
https://www.nationwide.com/lc/resources/auto-insurance/articles/learners-permit-insurance
https://www.thezebra.com/auto-insurance/driver/other-factors/cheap-car-insurance-new-drivers/#:~:text=Stay%20on%20your%20parents’%20auto,d%20find%20on%20your%20own.
https://www.thebalance.com/how-to-get-car-insurance-for-a-first-time-driver-527407
https://www.valuepenguin.com/auto-insurance/best-car-insurance-new-drivers
https://www.policygenius.com/auto-insurance/car-insurance-rates-for-new-drivers/
https://www.valuepenguin.com/best-car-insurance-teen-drivers
https://www.motor1.com/reviews/389873/best-car-insurance-for-new-drivers/
https://www.nationwide.com/lc/resources/auto-insurance/articles/best-car-insurance-young-drivers

Get A Free Quote

Disclaimer: By submitting this form I am giving Protect My Car consent to contact me by email and/or telephone which may include artificial or pre-recorded calls and/or text messages, delivered via automated technology at the telephone number(s) provided above even if I am on a corporate, state or national Do Not Call Registry. I understand that consent is not a condition of purchase. For sms messaging text stop to stop. Msg and data rates may apply. Max 10 messages per month. The Protect My Car privacy policy governs our data collection policy. Protect My Car does not offer or sell Vehicle Service Contracts in AK, CA, HI, MO, OK, or WA.