Can you get car insurance with a permit? | The Rise – The Motley Fool | CarTailz

It’s not something most people think about until they (or their teenage child) prepare to get behind the wheel: Can you get auto insurance with a permit? And do novice drivers really need it? The answer to both of these questions is yes, but different drivers may take different routes to get the coverage they need. Here’s what drivers should know about getting auto insurance with a learner’s license.

Can you buy car insurance with a permit?

Yes, drivers with a learner driver’s license can take out car insurance like any driver with a regular driver’s license. But they don’t necessarily have to buy their own policy, and that’s often very expensive.

There are no rules about the types of insurance that learner drivers can add. You can purchase the statutory liability insurance. This pays for hospital bills and property damage if the policyholder causes an accident. Registered drivers can also add collision and collision damage waiver for their own vehicle. Collision insurance pays for repairs to the policyholder’s vehicle after an individual accident or an accident that is your fault. Comprehensive insurance covers damage to the vehicle caused by storms, animal-vehicle collisions, theft and vandalism.

Depending on which insurer they choose, they may also have access to a number of optional protections, such as:

Does a driver’s license holder need insurance?

Almost all states require their drivers to have at least liability insurance, and this applies to licensed drivers as well. It is generally best to have more than the minimum state insurance, if possible. The minimum cover is often not sufficient to pay for all damages in the event of a serious accident. Once the insurer has paid up to the policy limit, it’s off the hook and the policyholder is left to pay for any remaining damage.

When license drivers need insurance

Driver license drivers are usually required to purchase their own car insurance in the following situations:

  • The license driver is 18 years or older.
  • The driver’s license driver’s parents or legal guardians do not have an auto insurance policy to join.
  • The license holder lives separately from his or her parent or legal guardian and does not attend school.
  • The license holder has already purchased his own vehicle.

In these cases, parents or legal guardians cannot add their driver to their policy. Thus, purchasing a separate insurance policy remains the only option, and it is often the more expensive choice.

With a driver’s license, the driver does not need car insurance

Licensed drivers may not need to purchase their own auto insurance if a parent or guardian can add it to their existing policy. Although adding a teenage driver to an insurance policy will always increase rates significantly, it’s usually the wiser route.

The driver’s license driver can use any car insurance rebates earned by the adults in the policy to lower their rates. For example, if the insurer gives the parent a multi-policy rebate that lowers their premium a bit, that could help other policyholders get lower rates as well.

How do you take out car insurance with a learner driver’s license?

Taking out motor vehicle insurance with a learning permit is equivalent to taking out a policy with a valid driver’s license. First, the licensed driver needs to shop around and compare rates to see which company offers the best deal.

Most companies allow drivers to get quotes and even buy the policy online. However, if the driver is a minor, they may need to contact an insurance agent for assistance.

Once satisfied with the policy, the driver pays the first month’s premium (or six months if paying in full) and the policy remains in force as long as the driver makes the payments.

How do you add a learner driver to an existing insurance policy?

Those wishing to add a driver’s license to their existing insurance policy can do so by contacting their insurance agent. This can often be done the same day and must be done before the driver can safely get behind the wheel.

The policyholder needs to know some basic information about the license driver, including:

  • Full name
  • gender
  • Age
  • accident history, if applicable
  • Vehicle make and model (if different from vehicles already included in the policy)
  • Driving license information

How to reduce car insurance costs

Insuring a new driver can strain policyholders’ wallets as they are more likely to get into accidents. Insurance companies recognize this and charge new drivers higher rates to account for these risks.

It is unrealistic to expect the fees for a license driver to drop to that of an experienced, accident-free adult driver, but it is possible to bring the cost down somewhat by taking the following steps:

  • Shopping spree: Those looking to insure a new driver should start their search with some of the best cheap teen car insurance. You may also want to look for a better deal every year.
  • Look for discounts: Several insurers offer youth-specific discounts, including student discounts and good student discounts. This could help lower premiums for teenage drivers.
  • Choose a high deductible: Deductibles are the expenses a driver pays when making a claim, while premiums are the monthly costs they pay to keep the policy in force. As a rule, choosing a higher deductible reduces the monthly premium costs.

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