Can You Get Auto Insurance With a Driver's Permit?
New drivers who carry a learner's permit must have insurance in accordance with his state's laws. State laws vary, but the most common way for a learning driver to get coverage is through his parents' policy. In all cases, when driving, the learning driver must be accompanied by a licensed driver who is over the age of 21. Other restrictions may also apply.
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State Laws
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The laws of your state play a role in determining how to insure a driver with a learner's permit. In some states, it is simply a matter of adding the driver to an existing policy in the household, usually that of a parent. Other states require that the permit driver have her own coverage, such as a temporary policy designed to provide coverage until she becomes a licensed driver. Some states offer a choice between the two options, allowing for the most cost-effective selection.
Insurer Rules
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Insurance companies may have their own rules about how to rate a driver with a permit. Some companies allow the operator to be rated as a "non-driver," which means the insurer does not charge a premium until the permit driver is licensed. Other insurers require the driver to be rated as soon as he gets his permit. In the latter case, the rate typically decreases when the driver receives his license. When a permit driver has his own temporary policy, the rate also decreases when he gets his license and is added to the parents' policy or gets his own permanent policy.
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Considerations
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In some cases, a driver with a permit may be learning from a driver who is not part of her immediate household, such as an aunt or uncle or older brother or sister. If so, the older driver needs to check with the insurance company to determine how the learning driver should be handled, especially if she will be training on a regular basis. The company might charge a premium for the driver until she is licensed. If the trainee has her own coverage or is covered by her parents' policy, she should also check with the carrier to determine if coverage extends when driving vehicles not in her household.
Ramifications
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Drivers with permits who do not carry proper insurance coverage can face stiff penalties, as can passengers who are training them. In some cases, being caught driving without insurance can delay or possibly jeopardize the driver's ability to get a license. A trainer who knowingly or unknowingly rides with the uninsured operator may also face consequences, both legally and from his own insurance company. If there is a claim, the insurer may have grounds to deny coverage due to misrepresentation.
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