All drivers must be covered by car insurance, even if they’re driving with a learner’s permit. And many insurance companies will sell a policy to a permit driver. However, permit drivers should try to get coverage with their parents’ or guardians’ policy if possible. In fact, this is likely to be a much cheaper way to be insured while learning to drive.
An exciting time for a driver
Getting a learner’s permit can be a very exciting time for a young driver (and a stressful time for a parent or guardian). To help new drivers start off right, New Jersey uses a multi-step process known as the graduated driver licensing (GDL) program. Part of the GDL is earning a learner’s permit, which allows you to drive while supervised by an adult, licensed driver.
Does a permit driver need car insurance?
All drivers need insurance, which provides financial protection to both you and other involved drivers if you’re in an accident.
However, you may not need to buy your own car insurance policy if you only have a learner’s permit; you can be added to your parents’ or guardians’ policy. Just be sure to contact the insurance company to let them know you’re driving with a permit and verify what is and isn’t required.
Because you’re driving with an experienced driver in the passenger seat, you may not be rated. In other words, adding a permit driver to the policy may not affect its cost. NJM, for example, notes that it doesn’t rate drivers until they’re 18 or have earned their basic license.
How to get car insurance with a learner’s permit
You may need to get your own insurance policy as a permit driver in certain circ*mstances.
- Your parent/guardian does not drive and is not insured.
- You live at a different permanent address than your parent or guardian.
- You’re an adult.
So if you do need to buy an insurance company, know that you have some options.
Buy car insurance through an independent agent
Independent agents have relationships with multiple insurance companies. They can handle much of the insurance-buying legwork for you and help you get the best price. Agents can also help advise you on your coverage selections, so you have a policy that provides optimal financial protection. Progressive, NJM and Plymouth Rock Assurance are examples of car insurance companies that sell through independent agents in New Jersey.
Buy car insurance through a captive agent
A captive agent represents a single company. They cannot compare rates but have extensive training on their company’s products. One of the country’s largest car insurance companies, State Farm, sells through captive agents.
Buy car insurance directly from a company
Many major insurance companies, including GEICO and Progressive, sell policies at their websites. A significant benefit of buying online is the convenience: You can get a quote and buy a policy any time of day, any day of the year.
How much does it cost to insure a learner driver?
There’s no way around it: Car insurance for a permit driver is expensive. According to one recent study, a policy purchased by a 16-year-old driver in New Jersey costs over $5,200 per year!
But as mentioned above, adding a permit driver to an existing policy may not affect the policy’s cost. Contact your insurance company to understand better what adding you to a parent's policy will cost.
How to save money on car insurance with a learner's permit
Considering those costs, you owe it to yourself to do all you can to save money on your insurance. When possible, a new driver should be added to a parents’ or guardians’ policy, as this is usually the cheapest way to insure a teen driver.
Beyond that are some tried-and-true tips for saving money.
Shop around for a car insurance policy
Comparison shop by getting price quotes from at least three companies. Insurance premiums vary by company, and you may find that you could save a significant amount of money by shopping around. As mentioned earlier, an independent agent or broker can do much of the shopping legwork on your behalf.
Ask about car insurance discounts
Even as a new driver, you may be eligible for discounts on your car insurance. Ask about discounts for being a good student or maintaining a good driving record. If getting your permit means adding a new car to your household, ask about a multi-car discount.
Keep a clean driving record
It may take some time to see your car insurance premium drop significantly. In the meantime, do your best to maintain a clean driving record. Tickets and other infractions can cause anyone’s insurance premium to increase; this is especially so for a new driver.
Do not drive without car insurance
The penalties for driving without insurance in New Jersey are severe. Expect a fine of up to $1,000, suspension of driving privileges for up to a year with a $100 fee upon reinstatement, and possible community service. Subsequent offenses result in even harsher penalties.
And chances are, when you do finally have the opportunity to drive, this black mark on your record will cause your car insurance costs to skyrocket even more steeply.
A learner’s permit is a big step
Getting your learner's permit is an exciting and big step in becoming an independent adult. Make sure you get off on the right foot by understanding your insurance needs.
Frequently asked questions (FAQs)
Can I register a car with a learner’s permit?
While you may be able to buy a car with a learner's permit, you'll need a full driver's license to register your car in New Jersey.
Do I need to buy car insurance when I get my learner’s permit?
All drivers must be insured, including those with their learner's permit. The best way to get coverage is to be added to a parent's or guardian's policy. If that's not possible, many companies sell car insurance to drivers with a learner's permit, though policies are very expensive.
This story was written by NJ Personal Finance, a partner of NJ.com. The information presented here is created independently from the NJ.com editorial staff, and purchases made through links in this article may result in NJ.com earning a commission.
