Do Teen Drivers With a Permit Need Insurance?
Car Insurance is Required
- Car insurance of some type is required throughout the United States, but insurance premiums are based in part on the value of the car, which is what the insurance is written for. If anyone other than the owner of the vehicle drives the car, the insurance company needs to know who that person is, what relation they have with the owner and how often and how far they will be driving. A teen with a permit is a special case and does not have to be listed on insurance, but doing so is still a good idea.
Driving with a Permit
- Teenagers driving with a learner's permit do not have be listed on the insurance policy for one simple reason: the permit requires a licensed and insured driver accompanies the teen whenever he drives the vehicle. The licensed driver assumes full responsibility for the vehicle while acting as a guardian for the teen, and must be listed on the car insurance.
Age and Insurance Purchasing
- Insurance companies cannot legally sell insurance to a minor, except in situations where the minor has become legally emancipated. An insurance policy is a legal contract, and the law prohibits minors from entering into such agreements on the grounds they are not adults and may not be fully aware of the implications of the contract they are signing. It is only when a teen lives on his own home and pays his own way in society that he controls his own power of attorney and can legally enter contracts of his own free will.
Insurance and Drivers Education
- Many states require teen drivers to complete a driver's education course before applying for a driver's license, and some states use a gradual method of licensing that slowly gives the permitted driver more responsibility and freedom on the roads. Additionally, young drivers who have taken a voluntary driver's safety course will be eligible for discounts on their insurance or the policy of the person whose insurance they are added to.
Maintain Good Grades
- Another way the permitted teen driver can make things easier when it comes time to get added to an insurance policy is to keep good grades in school. Insurance companies offer a discount to student drivers who maintain a B average or better in their classes. Permitted drivers do not need the discount because they are not considered to be responsible for the vehicle, but keeping high grades demonstrates to the insurance company that this driver has an attitude of personal responsibility.