- Why do I need insurance if I don’t have a license?
- How can I get insurance as a permitted driver?
- State requirements and liability minimums
- What additional coverage do permitted drivers need?
- What are the risks of driving uninsured?
- How does Lemonade protect permitted drivers?
- How can I convince my parents I'm ready to drive?
- Common mistakes to avoid
- The path forward
- FAQs about insurance while driving with a permit
You can get car insurance with a permit, and you absolutely should. It’s required by law in most states and protects your family from massive financial risk.
TL;DR
Here’s what you need to know about permit insurance:
- Coverage options: Get added to your parents’ policy (cheaper) or buy your own (if you’re 18+ or own a car)
- State requirements: Every state except New Hampshire requires liability coverage for permit drivers
- Real costs: Families spend an average of $206 monthly on teen insurance as part of $6,480 annual driving costs
- Smart moves: Use insurance with telematics to prove safe driving habits and earn discounts from day one
Why do I need insurance if I don’t have a license?
Here’s the reality: accidents won’t wait for full licenses. Whether you’re a permit driver or a seasoned pro, you’re operating a vehicle that could cause thousands in property damage or serious injuries. State laws recognize this, as most require some form of insurance coverage the moment you get behind the wheel, permit or not.
From a practical standpoint, consider the financial exposure. If you cause an accident while driving with your permit, your family could be looking at medical bills, property damage, legal fees, and more. Without proper insurance coverage, those costs come directly out of your family’s pocket.
Our recent research found that parents spend an average of $6,480 annually on teen driving costs, with insurance averaging $206 per month. This investment in coverage protects both you and your family’s financial future.
How can I get insurance as a permitted driver?
When it comes to insuring permit drivers, you typically have two paths: getting added to an existing policy or buying a new policy.
Adding to a parent’s insurance policy
This is the most common and usually most affordable option. Most insurance companies allow permit drivers to be added to their parents’ existing car insurance policy. Here’s how it typically works:
- Shared coverage: You’re covered when driving any vehicle listed on the policy
- Gradual transition: When you get your full license, you’re already established on the policy
Important note: Your parents need to notify their insurance provider as soon as you get your permit. Many insurance companies require this within 30 days, and failing to disclose permit drivers could void coverage.
Buying a separate policy
Sometimes a separate policy makes more sense, especially in these situations:
- Adult permit holders: If you’re 18+ getting your first license or returning to driving after a long break
- Different addresses: When you don’t live with a vehicle owner
- Vehicle ownership: If you own your own car
- Family circumstances: Divorced parents, guardianship situations, or complex living arrangements
State requirements and liability minimums
Every state (except New Hampshire) requires minimum liability coverage, and this applies to permit drivers too. Liability insurance covers:
- Bodily injury liability: Medical expenses if you injure someone in an accident
- Property damage liability: Repair costs if you damage someone else’s property
State minimums vary dramatically. For example:
- Oregon requires 25/50/20 coverage (up to $25,000 per person injured, $50,000 per accident, $20,000 property damage)
- Texas requires 30/60/25 coverage
- Some states require additional coverage like personal injury protection (PIP)
Keep in mind: State minimums are often too low for real-world accidents. A single serious accident can easily exceed these limits, leaving you responsible for the difference.
What additional coverage do permitted drivers need?
Since those state minimums usually aren’t enough to cover what accidents actually cost, here are some extra coverage options worth considering:
Collision coverage
Pays for damage to your car after an accident, regardless of who’s at fault. Especially important if your family has a car loan or drives a newer vehicle.
Comprehensive coverage
Covers non-collision damage like theft, vandalism, weather damage, or hitting an animal.
Uninsured/underinsured motorist coverage
Protects you when the other driver doesn’t have adequate insurance coverage. Given that roughly 13% of drivers are uninsured, this coverage fills crucial gaps.
Pro tip: While collision and comprehensive coverage aren’t legally required, you’ll need both if your car is financed or leased, as lenders require it to protect their investment in the vehicle.
What are the risks of driving uninsured?
Driving without proper insurance coverage creates massive financial risks:
Legal consequences
- Fines and penalties (often hundreds or thousands of dollars)
- License suspension (bye-bye driving privileges)
- Vehicle impoundment
- Required SR-22 filings (high-risk insurance certification)
Financial exposure
- Personal liability for all accident damages
- Medical bills for injured parties
- Legal fees if you’re sued
- Repair costs for damaged property
Long-term Impact
- Difficulty getting future insurance coverage
- Significantly higher insurance rates when you do get coverage
- Potential impact on credit scores and future employment
A typical fender-bender can cost $3,000-$5,000 in repairs. A serious accident with injuries can reach six figures or more. Without insurance, these costs come directly from your family’s finances.
How does Lemonade protect permitted drivers?
Car insurance is an investment, with families spending an average of $206 monthly on teen insurance. At Lemonade we make car insurance simple and affordable for families navigating permit requirements.
Smart technology for new drivers
- No plug-in devices: Our app tracks safe driving habits through your phone, just be sure to enable location permissions and telematics in the Lemonade app
- Crash detection: Automatic help if something happens (especially important while you’re learning the rules of the road)
- Transparent pricing: See exactly what you’re paying and why
Discounts that actually matter
- Safe driving discounts: Earn savings for smooth speed, gentle braking, and low phone use starting from day one
- Bundle savings: Combine with renters, homeowners, pet, or life insurance and save on each policy
Family-friendly features
- Easy policy management: Add or remove drivers, update your personal info, or change your coverage right in the app
- Clear coverage explanations: No confusing insurance jargon, we explain what’s covered in ways that actually make sense
- Fast claims: Simple claims settled instantly through the power of AI, with humans ready to help when things get complex
How can I convince my parents I’m ready to drive?
We can’t convince your parents for you, but our survey insights from over 2,000 families who’ve navigated the teen driver journey can definitely help make those conversations easier. Here’s the reality: 51% of parents argue with teens about driving, making it the #2 source of family conflict. But families who use clear expectations, smart technology, and open communication transform this potential stress into stronger relationships and more driving freedom for teens who prove they’re ready for the responsibility.
Start conversations early
Bring up insurance requirements before you even get your permit. Show your parents you understand how coverage protects your family’s financial security and your future driving record. This demonstrates maturity and responsibility, AKA exactly what they want to see.
Use technology wisely
Here’s some good news: 63% of parents actually embrace telematics monitoring. Apps that track driving habits can reduce arguments about speed (the top concern for 60% of families) by providing objective data both you and your parents can see. Instead of fighting about whether you were speeding, you can both look at the same facts.
Frame insurance as protection
Instead of letting your parents view that $206 monthly average as just another expense, help them understand how insurance protects your independence. Make it clear that you know accidents without coverage could mean losing driving privileges entirely, and that you’re committed to avoiding that outcome.
Common mistakes to avoid
Don’t wait
Some families think they can wait until after getting a full license to add insurance. This creates a coverage gap that could be financially catastrophic.
Don’t assume your covered
Just because you have a permit doesn’t mean you’re automatically covered. Make sure your parents contact their insurance provider to confirm coverage and make any necessary updates.
Don’t skimp on coverage
State minimums often aren’t enough. Your family should consider their financial situation and choose coverage limits that actually protect your assets.
Don’t forget to notify
Most insurance companies require notification within 30 days of getting a permit. Missing this deadline could void coverage.
The path forward
Getting car insurance with a permit isn’t just possible… it’s essential. Whether you get added to an existing policy or purchase separate coverage, the key is acting quickly and choosing appropriate coverage levels.
Remember, this is an investment in safety and financial security. Start the insurance conversation early, understand your state’s requirements, choose coverage that actually protects your family, and use technology to build safe driving habits from day one.
Ready to get started? Get your quote today.
FAQs about insurance while driving with a permit
Can you own a car with just a permit?
Yes, you can legally own a car with just a learner’s permit in most states. There’s no law requiring a full license to purchase or own a vehicle. However, you’ll still need a licensed driver with you whenever you drive it, and you’ll need to meet all insurance requirements. If you’re financing the car, lenders will require collision and comprehensive coverage regardless of your license status.
What happens if I get pulled over while driving with a permit?
If you’re following your state’s permit rules (like having a licensed adult in the car), getting pulled over with a permit is handled like any other traffic stop.
However, if you’re driving alone or violating permit restrictions, you could face fines, license suspension, and your permit could be revoked. Always carry your permit, your car’s registration, your insurance information, and make sure your supervising driver has their license too.
Can my parents remove me from their insurance policy while I have a permit?
Most insurance companies won’t allow parents to remove permit-holding teens from their policy if they live in the same household and have access to the family vehicles. Insurance companies consider all household members with permits or licenses as potential drivers. Removing you could void coverage if you’re in an accident, leaving your family financially exposed.
How long do I have to wait before getting my full license after getting a permit?
This varies by state, but most require you to hold your permit for 6 months before you’re eligible for a full license. You’ll also need to complete a minimum number of supervised driving hours (usually 40-120 hours) and may need to take driver’s education. Some states allow you to test earlier if you complete an approved driver’s ed course.
Which cars are best for learners permit drivers?
The best cars for permit drivers are typically used cars that are 2-4 years old with excellent safety ratings, good fuel efficiency, and reliable maintenance records. Look for vehicles with top safety ratings from IIHS or NHTSA, as these often qualify for lower insurance rates. Popular choices include the Honda Civic, Toyota Corolla, and Mazda3, all known for their safety ratings, affordability, and lower insurance costs.
Avoid high-performance or luxury used cars, as these typically come with much higher insurance premiums that can strain your family’s $206 monthly teen insurance budget.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
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