Insurance Q&A: “Is insurance needed for a permit?”
Not if you can convince the person who you’re 15-year-old just injured (and whose car he/she just totaled) to pay for their own medical expenses and to repair their own car!
In short, yes, you need insurance for a driving permit.
Put another way, would you expect your insurer to pay for damages caused by your “permitted” driver? Of course you would.
In turn, insurance companies expect to collect the appropriate amount of insurance premium to cover the associated risk they accept by agreeing to pay for the damages in question.
“But My Teen Doesn’t Ever Drive My Car”
Wouldn’t the world be a wonderful place if teenagers always played by the rules? Turns out fourteen and fifteen-year-olds sometimes make bad decisions and drive without a permit…or even without their parent’s permission– and cause accidents! I know…gasp.
Insurers demand that anyone in the household above the age of 15 (in some cases 14) be accounted for…permit or not, and listed on the car insurance policy for just this reason.
I’m Serious. My Teen Doesn’t Drive Our Car
Great. Insurance companies have a solution for this. They simply require that the potential driver be listed on the policy, and then excluded from coverage. Problem solved. Your money is now where your mouth is.
With your teen excluded from your auto insurance policy, your insurer can sleep comfortable on Friday and Saturday nights knowing they do not have to pay out insurance claims or defend you in court against any bodily injury or property damage that results from your teen’s negligence while operating the vehicle (they never drive).
Oh yeah, they also won’t have to pay for the dent in the bumper resulting from their teen pushing the car out of the garage in neutral and running into the mailbox…
Now That We’ve Got Your Attention Again
You need, and should want to have your teen covered by your auto insurance policy. And yes it will be expensive.
Doing so can limit the hit to your checkbook.
Not shopping when adding a teen driver to a policy is about as smart as believing your teen will listen to everything you tell them.
Read more: Can I get insurance with a permit?