Drivers with a learner’s permit need to be covered under an insurance policy. Having insurance coverage while learning to drive provides protection in the event of an accident or another driving mishap. But even though drivers with a learner’s permit need insurance coverage, they usually don’t need their own car insurance policy.
If a young person with a learner’s permit is driving with a licensed, insured adult over the age of 21, that person’s insurance typically would provide coverage in the event of an accident. Moreover, if the driver is a teen, they do not need to obtain their own coverage unless they are the sole owner of a car. Usually, teen drivers with learner’s permits are covered by their parent’s insurance, because they are either borrowing their parent’s car or are listed as a co-owner with their parents.
Older people who are learning to drive and are not covered by a relative’s or roommate’s policy are normally covered by the policy of the person whose car they are borrowing during driving lessons. However, if they purchase a car before obtaining a license and are listed as the sole owner of that car, then they will need to purchase insurance coverage in order to avoid breaking state laws.
Car insurance is likely to cost more than $5,500 annually for a new driver who is 17 years old to get a stand-alone policy. On the other hand, auto insurance will cost about $2,750 extra per year when adding a 17-year-old new driver to a parent’s policy. But insurance costs for new drivers vary widely.… read full answer
Age is a major factor in how much insurance costs for a new driver. Not everyone gets their first license at 16 or 17 years old. A new driver could be 25 or 40 or even 60 years old. Insurance companies set different prices for insuring a newly licensed teenager and someone getting their driver’s license later in life. They also factor in gender, state of residence and coverage amounts. Insuring any new driver, however, is more expensive than covering an experienced driver with good driving and insurance records.
Statistics show that new drivers tend to be high-risk drivers who are more likely to get into accidents and file claims. That’s why insurance companies charge more to insure them. You can’t fight statistics, but sometimes, you can make them work for you in order to get the best possible price. A look at car insurance statistics yields the following findings.
Adding a teen to a parent’s policy is cheaper. If you are a teen driver living at home or in a dorm, ask your parents to add you to their policy. It will be about half as costly as having your own policy.
Luxury cars are expensive to repair, and sports cars are likely to be driven too fast. Driving a cheaper, practical car with good safety and anti-theft features will lower your rates.
Students with good grades are better drivers. Insurance companies give discounts to students with a B average or better.
Driving courses improve drivers’ skills. Many insurance companies offer discounts for attending driver’s ed or online defensive driving schools.
Teachers, physicians, police officers, and other well-educated professionals file fewer claims. Some insurance companies offer discounts based on occupation.
If you are a new driver of any age, it’s worthwhile to comparison shop rates and discounts carefully. The cheapest way to do this is by getting free online quotes from multiple auto insurance companies.
Car insurance for a 16-year-old costs $295 to $1,170 per month, on average, depending on whether the policy is for the 16-year-old alone or the teen is added to a parent’s policy. Most 16-year-old drivers are covered on their parents’ policy because it’s cheaper. But in any case, the exact cost of adding a new driver to a car insurance policy can vary based on … read full answerfactors such as the insurer, location, car type, coverage limits, and more.
Average Cost of Car Insurance for a 16-Year-Old
Adding a 16-year-old to a parent’s policy costs an average of $1,765 for a six-month policy. A six-month policy for a 16-year-old alone averages $7,025—nearly four times as much.
Cost of Car Insurance for a 16-Year-Old Alone: $7,025
Cost of a Parent’s Policy Alone: $1,494
Cost of a Parent’s Policy with a 16-Year-Old Added: $3,257
The average cost to insure a newly-licensed teen varies widely by state. In states where insurance is more affordable, like Hawaii, Ohio, and Iowa, adding a 16-year-old to an existing policy raises premiums by as little as $100 to $175 each month. But in states like Michigan, Connecticut, and California, you could pay $500 or more per month to add a 16-year old to your policy. Rates also vary by gender, with 16-year-old boys paying about 16% more than girls.
Tips for Getting Car Insurance for a 16-Year-Old
A 16-year-old must be living at home to be covered on their parents’ policy. The benefit of adding a teen to your policy is much lower prices, but it does have possible drawbacks. If your teen driver has any accidents or moving violations, it will affect the entire family’s premiums. Your personal assets could also be at risk if your child gets into a serious accident. Nevertheless, most parents still choose to cover teenagers on the family policy.
Either way, be sure to compare prices from different insurance companies before making a decision. You should also see if your teen qualifies for any discounts to help minimize the extra cost.
Yes, you will likely have to add your teenager to your car insurance when they first get their permit and start driving. Some states - including Illinois, Indiana, Maryland and others - allow insurance companies to require that customers list a teen driver on their policy when the teen receives a learner's permit. However, different insurers differ on when you have to start paying extra for them. … read full answer
The bottom line is that you should inform your insurance company before your teenager gets their preliminary permit. While most companies start covering your teen then, you typically will not be charged extra at this point because the mandatory adult supervision makes your teenager a lower risk. You will be charged additional premiums for your teen when they are fully licensed or turn 18, whichever comes first.
But be aware that this is not true for all companies in all states. It’s important to ask your insurance company if you’re required to not only add your teenagers, but also start paying premiums for them as soon as they get a permit.
The average cost to add a teenage driver to your family policy is about $225 per month. It’s a bad idea to try to hide your teen from your insurance company just to save this cost, however. Your insurer is likely to find out anyway. You may have listed your young children on your original application, for example. Insurers also receive reports listing residents at your address and periodically review Department of Motor Vehicles information. If your insurer doesn’t find out about your teenage driver until he or she is involved in an accident, this can be a big problem. Some companies will forgive you. Others will refuse to pay the claim or back-charge you for all the premiums you haven’t paid since your teenager became licensed.
If you don’t want to add a teenager to your policy, you can have them buy their own. This will cost about twice as much, but it does protect the family assets from liability in case your teenager causes an accident. If your teenager moves away from home (other than for school), they will have to get their own policy anyway.
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