Does My Teen With A Permit Need To Be Insured?

June 9, 2020

Having a learners permit is a fun and exciting time in life, especially for the teen! For the parents, however, it might be a little scary. It’s the guardians job to make sure the teen is taught the rules of the road, and how to be a safe driver.

Whatever car you’re using, regardless of whomever is driving it, needs to be insured. There are big repercussions if you get pulled over without insurance.  If the car is insured, and the driver is not excluded, the driver should be covered. If the insurance company which insures the car finds out about the permitted driver causing an accident, it is likely the driver will need to be added to the policy or excluded going forward.

Excluded drivers

Excluded drivers aren’t covered on the car insurance policy. For a driver to be excluded the person who is insured, who is often the owner of the car, needs to sign a form indicating and agreeing that the said driver is excluded. If the driver does drive the vehicle and is in an accident, the car insurance policy will not provide any coverage.

Don’t be in the dark

Doesn’t assume you know all the ins and outs of car insurance – there may be more to know. Calling your insurance agent is the best way to get understanding on any questions you may have. Don’t always trust what the internet, every insurance company is different and requires different steps and procedures. Letting your young driver get away with driving without talking to your company could backfire. Car insurance is your friend! It’s there to cover any damages or losses, so don’t try and hide your young driver! It’s not worth paying a lower rate only to get dropped from your coverage once caught.

Not all companies are the same

Most carriers expect you to have your permit driver listed on your policy. Usually the permitted driver will have a lower rate than a newly licensed driver.

However, some insurance carriers will not allow you to list a permit driver as a driver – only licensed driver. But, The permitted driver will be automatically covered under the policy of his or her parent.

The younger and less experienced, the pricier.

Young drivers aren’t cheap to insure. That’s because since they are inexperienced and have had less time on the road, they are far more likely to get into an accident. It is more of a risk for your insurance company to insure them.

If you want to try and cut down on those prices, there are a few ways. Encourage your child to be a good student! Most insurers offer a Good Student discount. Meaning, if your child has a certain GPA, they can receive a discount for being responsible in the classroom.

You can also save if your teen driver doesn’t have their own car just yet. By putting them as a secondary driver on your policy will save you money. Not only will it save you money, but they can ease into driving before getting their own car.

But of course, the best thing you can do is spend time teaching your teen to drive safely and wisely.

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