Does a teen need temporary insurance with a learner's permit?

If your teenager is learning to drive, you may wonder what the auto insurance requirements are. The answer is simple: anyone who gets behind the wheel, including drivers with a learner's permit and the supervising adult, must be covered by an insurance policy. This means the vehicle your teen will drive must be insured, and you should notify your insurer about your teen’s learner’s permit to ensure proper coverage.

Many insurance companies require you to list all household members aged 14-16 and older, even if they aren't driving yet. If your teen is already listed on your policy, coverage may automatically extend to them. However, some companies may require you to add the permit holder to your policy formally. Each state and insurance company has different requirements. Therefore, the best approach is to notify your insurer of changes to your child's driving status to confirm what’s needed. Later, when your child obtains a full, valid driver's license, they typically need to be listed as a primary driver on the policy.

Additionally, if your teen takes lessons through a driving school, the school should have its own insurance to cover any accidents that may occur during instruction.

Let's say your son or daughter is learning to drive. You'll likely expect them to make a few mistakes as they learn the rules of the road. But, according to the Insurance Institute for Highway Safety (IIHS) teen drivers are nearly four times more likely than drivers over the age of 20 to have an accident.

If a teen gets into a fender bender while they have a learner's permit, the consequences are the same as they would be for a fully licensed driver. They could still be found at fault for the accident, and they would still be responsible for repairs if they damage your car or another driver's car.

If your teen owns their own car – the title is solely in their name, and not jointly titled with a parent – they will likely need to buy their own separate car insurance policy. However, if the teen is driving the family vehicle or has a car that's co-owned by a parent, they can be added as a driver to the family’s auto insurance policy.

When your teen is ready to get their learner's permit, it's a good idea to notify your insurer. As a learner driver, they may be covered on your auto policy because they are using your vehicle with your permission. Once they get their driver's license, you'll likely need to add them as a listed driver on your policy.

Keep in mind that the rules on when to add your teen driver to your policy vary by insurer. So, you may want to talk to your insurance provider sooner rather than later to go over your options.

Additionally, in most states, younger teens cannot purchase their own auto insurance until they reach the legal age to sign a contract, usually 18 years old. Therefore, you'll typically need to add your child to your policy until they can purchase their own insurance.

Adding a teen driver to your policy can affect how much you pay for coverage. Ask your insurance provider if your insurer offers any teen driver discounts for good grades or for completing a driving safety course.

Additionally, the type of car your teen drives may affect your car insurance premium. If you're shopping for a new or used car for your son or daughter, you may want check out the IIHS' list of safe vehicles for teens. Each year, the organization puts out a list of "good" and "best" car choices for teen drivers, based on safety and price considerations, among other factors

Adding your child as a permit driver to your policy is a straightforward process. You’ll contact your insurance provider to inform them that your child has obtained a driver's permit. You will need to provide their information, such as their name, date of birth, and the vehicle they will be driving. Once your child is officially licensed, reach out to your insurance provider again to add them as a rated driver. Typically, permit drivers are not rated, which means there won’t be any increase in your premium. However, once your child becomes fully licensed, you can expect your rates to go up. Be sure to ask your insurer about any available discounts for new and young drivers.

Like any other driver, a vehicle driven by a learner must carry at least the minimum auto insurance required by the state. However, it may be beneficial to increase your coverage limits since learner drivers have limited driving experience, which can increase the likelihood of accidents. Teens aged 16 to 19 have a higher accident risk than any other age group, according to the CDC. It is also wise to protect your vehicle from physical damage by having sufficient comprehensive and collision coverage.

Even after getting a valid license, it’s essential to ensure that your teen driver continues to carry adequate car insurance.

A learner's permit gives a person permission to drive under certain restrictions. And, every state now has graduated drivers license (GDL) programs, according the IIHS. States' GDL laws help teen drivers gain valuable experience as they develop into more mature drivers, according to the Insurance Information Institute (III).

The most important thing is to help keep your teen safe on the road. Know the rules in your state, and make sure your teen is adhering to them. The IIHS encourages parents to take an active role in helping teens develop safe driving habits by being a good role model, taking part in practice driving sessions and setting rules beyond the GDL regulations.

It can be an exciting and stressful time when your child starts learning to drive. With practice and insurance protection in place, you can help your teen driver learn the rules of the road. Talk to your insurance provider about when it's the right time to add your son or daughter to your auto policy.