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Reviewed by Daniel Walker
Licensed Car Insurance Agent Daniel Walker

UPDATED: Nov 3, 2021

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The Short of It

  • There isn’t a particular type of insurance for permits, and student drivers can get the same insurance as licensed drivers
  • Permit drivers have the option of buying their own policy or being added onto someone else’s
  • While both can get expensive, adding a permit driver to an existing policy can save them about half what it costs for an individual policy

As new drivers, teens probably don’t understand the complexities that come with insurance — they might not even know they legally have to have insurance.

Finding auto insurance companies that accept permits is necessary for teens, but all major car insurance companies offer coverage to new and learning drivers. Insurance for young and inexperienced drivers comes with higher rates, however.

If permit drivers can get insurance, should they get liability auto insurance or full coverage? What add-ons would be best for them? 

Keep reading to learn more. If you’re ready to start looking at auto insurance quotes for new drivers, enter your ZIP code above to begin.

Are there auto insurance companies that accept permits?

There is no such thing as special insurance for drivers with permits. So, when you ask, “Can I get insurance with a learner’s permit?” the answer is yes and no.

All major auto insurance companies accept permits, but it’s not necessary to buy a separate auto insurance policy for a learning driver.

There’s no need for separate auto insurance with a learner’s permit because learner drivers are protected by a parent’s or the owner of the car’s policy. There aren’t many car insurance companies that don’t accept permits on an existing policy, but it’s always best to check with your provider before you buy auto insurance somewhere else.

You can buy a standard policy and purchase (or finance) a car without a license. However, most states don’t allow an unlicensed driver to register a vehicle under their name.

For some companies, a registered vehicle is a requirement for coverage.

Companies that will sell a policy to a driver with a learner’s permit often require that you obtain your license within 30 to 45 days. If you fail to get your license, your policy will be revoked.

With over 200,000 teen car crashes a year in the U.S., it’s easy to see why parents might want to get their children their own insurance policy. If you decide you want to buy, auto insurance companies that accept permits may require the signature of a parent or guardian before they’ll insure you if you’re a minor. 

Are permit drivers covered by insurance on the car they learn in?

A general rule for car insurance is that the policy sticks with the car, not the driver. So when a teen gets behind the wheel of a parent’s car, they’ll be covered by the policy on the vehicle.

One thing to note is that most insurance companies that accept permit drivers only extend liability coverage to them. So if you’re letting a permit driver practice with your car, you might want to check with the specifics of your policy.

Should you add a driver with a permit to your policy?

Buying a policy as a young, inexperienced driver can be costly. Insurance companies recognize this group as high-risk, meaning they’re more likely to make claims than other drivers.

In the U.S., the average monthly car insurance price for a 16-year-old new driver is $428 a month, which is nearly double the $235 per month it costs to add a teen driver to an existing policy.

Regardless of whether you plan to get a new policy or add a driver with a permit to your policy, you should always let your insurance company know what’s happening.

They’ll want to know that a learner’s permit is in the household and will be using your car.

It’s also possible that your insurance company will charge a smaller fee to add a driver if they plan on using your car sparingly.

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What types of insurance for learner permits are best?

To find the most affordable auto insurance companies that accept permits, you should know what insurance you want. Types of insurances that would cover learner permit drivers are:

  • Liability: covers damages done to other drivers or property
  • Collision coverage: covers damage done to your vehicle in an accident
  • Comprehensive: covers everything that might happen to your vehicle that isn’t a collision
  • Personal injury: pays for medical costs if you’re injured
  • Uninsured/underinsured motorist: covers damages if you’re involved in an accident with an uninsured driver
  • Add-ons: includes roadside assistance and accident forgiveness

Increasing your coverage can increase your auto insurance rates, so remember to comparison shop before you buy auto insurance from companies that accept permits.

How can you save money on insurance for drivers with a permit?

With auto insurance companies that accept permits, rates can be high. However, you can lower that cost with a few strategies below:

Drive Safely

One of the best things you can do is to prove you are a safe driver. This means avoiding accidents, following traffic laws, and using your car’s safety features like seatbelts.

Take Advantage of Discounts

This is where you can see your rates go down. In addition, most insurance companies offer a list of auto insurance discounts to their drivers, which can save you a lot of money.

  • Driver training and education courses: Check with your company to see which classes are approved for this discount.
  • Good grades: By maintaining a “B” average in school, many companies will give you a discount.
  • School discounts: Discounts include moving away for college and driving certain miles per day to class.

It can be stressful enough for both child and parent when a teen starts to drive. The last thing you want is to be stressed out by getting a permit driver the right insurance.

Getting permit driver insurance is easier than you might think, however. If you want to compare affordable auto insurance quotes, enter your ZIP code in our free tool below to get started.