Do I Need Car Insurance With a Learner Permit?

African American teen learning to drive with mom
Gary S Chapman / Getty Images

Do you have a driver with a learner's permit in the household? A learner's permit is an exciting time in a teenagers life and often a very scary one for the parents. It is not only important to teach the laws of the road to a young driver, but it is also to make certain he or she is properly. 

Car Insurance Follows the Car

The car in which a driver with a learner's permit drives definitely needs to be insured.

Car insurance follows the car, not the driver. If the car is insured, and the driver is not excluded, the driver should be covered. If the insurance company which insures the car finds out about the permitted driver causing an accident, it is likely the driver will need to be added to the policy or excluded going forward.

What is an Excluded Driver?

Excluded drivers are not covered on the car insurance policy. In order for a driver to be excluded the named insured who is often the owner of the vehicle needs to sign a form indicating and agreeing that the said driver is excluded. If the driver does drive the vehicle and is in an accident, the car insurance policy will not provide any coverage.

Call Your Car Insurance Agent or Carrier

Car insurance is not something you should be guessing about or making assumptions about. Looking online for the answer to this question is not going to give you the solid factual answer you need.

Calling your agent and being forthcoming with your situation is the best way to get the best insurance coverage available. Trying to hide young driver's or other issues which you know could negatively affect your policy premiums can cause you a lot of problems in the future. Remember the purpose of car insurance is to provide coverage (hopefully the coverage you thought you bought) for damages after a loss.

Paying a lower rate only to wind up with zero coverage is not going to help anyone.

Not All Insurance Carriers Are the Same

  • Most insurance carriers want you to have the permit driver listed on the car insurance policy as a permitted driver. Often a driver with a permit will have a cheaper rate than a newly licensed driver. Often if you have one vehicle and two drivers the permitted driver can be a secondary driver instead of a primary driver. A permitted driver may not cost you as much as you might think.
  • Some insurance carriers do not even have the ability to list a permit driver as a driver. A valid drivers license may be required. The permitted driver will be automatically covered under the policy of his or her parent.
  • Most insurance carriers list dependents in the household on the car insurance policy, even babies. This helps the insurance company keep track of upcoming drivers. The insurance company will notify you when your teenager is getting close to driving age and require he or she be added to the policy as a driver.

Save Money on Young Drivers

Well, truthfully all young drivers cost quite a bit to insure. Their inexperience has been proven to lead to claims. The best cost savings options are the good student discount and not letting them have their own vehicle.

It is a great option to have more vehicles than drivers. In this situation, most insurance carriers make it a possibility to have a young driver as a secondary driver which can save a whole lot of money. Knowing a permitted driver has total access to a vehicle definitely, comes with a higher price tag. Having your teen get their first job and pay their own way when it comes to car insurance can alleviate the financial burden.