Do teens need auto insurance if they have a license but no car?
Teens need to be listed on their parent's auto insurance policy if they are going to be driving the family car. Adding a teenage driver will raise your rates, but it's usually the cheapest option. Learn what kinds of coverage your teen driver needs.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
UPDATED: Oct 15, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 15, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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There is nothing like an excited teenager that just got their license and now wants to drive on their own. Many teens don’t own their own vehicle though, and instead, drive their parent’s or another family member’s car most of the time. So do teens need to carry their own auto insurance even if they don’t have a car?
Every teenage driver in your household must be covered by auto insurance, even if they don’t own a car yet. Here’s how that can work.
- Teenagers can only drive a vehicle that is covered by auto insurance
- A teenager can be covered by an auto insurance policy even if they don’t have a vehicle of their own yet
- Non-owner auto insurance or extended coverage from the vehicle owner’s car insurance can provide the legal and financial protection teenagers need to keep driving legally
Best Auto Insurance For Teens With a License But No car
One of the most questions that often arise after getting a driver’s license is “Do you need insurance if you have a license but no car?”
The truth is, teen drivers need to be covered by their parent’s car insurance policy. Adding a teen driver to your policy will extend the liability and even the collision coverage on your policy to them.
But, can you drive a friend’s car without insurance? Now, car insurance is usually connected to the vehicle, not the driver, so your teen can safely borrow a friend’s or neighbor’s car on occasion if necessary. As long as everyone who is driving is legally entitled to do so, i.e., they have the permission of the owner, they are fully licensed, and they are not impaired in any way, then car insurance will cover teen drivers even if they don’t have their own policy.
Now, you may be wondering: “Can a teenager get their own car insurance policy?” There are also non-owner policies, but it is unusual for teens to take out this sort of coverage. The other important thing to note is that the insurance company should know if the teen driver is a primary driver. This can have an impact on the insurance rates as teen drivers are riskier than older drivers.
Some state auto insurance laws require that all licensed drivers carry auto insurance while others only require people with registered vehicles to carry auto insurance.
The table below, for example, shows the graduated license system in Colorado.
https://www.rmiia.org/auto/teens/Colorado_GDL.asp
https://www.iihs.org/iihs/topics/laws/statelaws?stateabbr=CO
| Restrictions | Learner's Permit | Restricted License | Unrestricted License |
|---|---|---|---|
| Age | 15 – if enrolled, attending, and participating in driver's ed 15 1/2 – if completed a four-hour driver-awareness course 16 – if none of above | If under 18, one year after obtaining learner's permit | 17 – if held restricted license 12 months 18 – otherwise |
| Passengers | Must be supervised by a licensed parent/guardian or their licensed adult appointee | First six months – no passengers under 21 Second six months – limit of one passenger under 21 (exceptions: siblings, family emergencies) | No restrictions |
| Hours | No restrictions | First year – no driving between midnight and 5 a.m. (exceptions: presence of a parent/guardian, driving to and from school activities or work, family emergency, being an emancipated teen) | No restrictions |
| Cellphone Use | Forbidden | Forbidden | Forbidden if under 18 |
| Prerequisites | If under 18, parent or guardian must sign an affidavit of liability | Completion of 50 hours supervised driving, 10 of which at night | If under 18, holding a restricted license for one year |
The reason why 16-year-olds pay more for insurance — or, rather, cost more — is due to their lack of experience. Inexperienced driver insurance is expensive, but the more history you have proving you are a safe driver, the lower your insurance costs.
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How to Get Car Insurance for Teens
So, do teenage drivers have to be insured to be able to drive? A teenage driver can pay for their own insurance or be an added driver on their parent’s policy. It depends on your situation.
Using a Parent or Guardian’s Auto Insurance Policy
If a teenager is your child, relative, or someone else living in your household, you can list them on your insured list so they can be automatically covered. For teens under 18, this may be the only option you have because they are children and not permitted to sign legal documents like insurance contracts.
However, let’s say that your teenage neighbor needs to borrow your car to run errands. Although that individual doesn’t live in your household and isn’t your child, they can still be covered under your insurance as permissive users. Such drivers are usually allowed to drive your car while enjoying the auto insurance coverage you paid for as long as they only use your vehicle on occasion
Remember though, that teenagers under your insurance can significantly increase annual insurance premiums, forcing you to buy more than the minimum coverage you may prefer. So, it is usually cheaper to include them in your policy than to pay for their insurance separately.
In addition, you need to pay close attention to who gets designated as a primary driver if there is more than one person on an insurance policy. If you have two cars and one is pretty expensive, your inexperienced teenager should not be designated as a primary driver on the policy for the more expensive vehicle. That’s because teenagers will generally be charged more for insurance. So, you should list them as an occasional driver for that car and take advantage of the available rates.
I Have a License But No Car, Can I Get my Own Policy
For teenagers over 18 years, it may be wiser to let them assume some or all of the burden of paying for car insurance, especially if they will be living away from home some of the time. However, the cost of their coverage will be far higher due to their lack of experience, which means they are likely to get into accidents.
Also, the more expensive the car they drive, the higher their insurance premiums will be. And some vehicle types, like SUV’s, which are bulky and more challenging for teenagers to handle, will also attract higher coverage costs because they are likely to be involved in accidents.
It is also worth noting that if your teenager has their own policy and they get into an accident, the insurance rates will increase significantly after that.
Type of Car Insurance for Teenage Drivers
Statistics show that drivers aged between 15 and 20, who have little driving experience, are responsible for 7.8 percent of all fatal accidents. Also, according to the Insurance Information Institute, vehicle accidents are the second-leading cause of death among teenagers. There is no doubt about it: auto insurance is a necessity for teenage drivers.
So, it’s safe to state that teen drivers must have some form of coverage. But what insurance do teen drivers need?
No Fault-Coverage
Across the U.S., 12 states have no-fault insurance laws. They include Florida, Pennsylvania, and Minnesota, among others. And in those states, you can’t rely on the other driver’s insurance to cater to all your medical expenses, even if they are at fault. That’s because your right to sue the other driver is pretty limited. If you live in such a state, your teenager should have personal injury protection (PIP) coverage.
PIP coverage will cover the expenses arising from bodily injury of the teenager even if they are at fault. In addition, the insurance will pay for the lost wages, attorney fees, and even child care expenses of the insured parties. However, the driver liable for the accident will cater to the vehicle damage expenses through their insurance.
Liability Insurance
At the very least, teen driver’s insurance should include liability coverage because it is mandatory across the country. The insurance will financially protect your teenager if they are responsible for harming other people or their property while handling your vehicle or someone else’s car. And without it, they should not drive.
All states except New Hampshire require some form of liability auto insurance. But even if you reside in that state, you should get it for your teenagers anyway. Otherwise, if they are at fault for an accident, their parents and guardians may be sued and forced to compensate someone. And that money is likely to come from your pocket if they are unable to pay it.
Coverage For the Car
Liability insurance covers third parties, which leaves you or another vehicle owner holding the bag for any expenses incurred if your car is damaged while in the care of a teenager. Therefore, you need to pay for insurance that covers vehicles while in motion and when parked.
Collision and comprehensive insurance covers tend to take care of most eventualities. But you can also include additional coverage to pay for medical expenses after the accident regardless of who is at fault, vehicle breakdowns, and expenses incurred when the other driver is at fault but has no insurance.
Licensed Teens With No Car Still Need Insurance
Teenagers should be covered under the liability insurance attached to the car they are driving even if they have a license but don’t own their car. This is necessary because any car on public roads must be insured by law.
That way, even if they get involved in an accident while driving a vehicle other than your insured ones, they will be protected from some or all of the financial consequences that arise. It is also wise for them to have collision and comprehensive coverage too because of the higher risks associated with teen drivers.
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Frequently Asked Questions
If I have a driver’s license, do I have to have insurance?
If you have a license, but no car you don’t need insurance on your own. However, the specific insurance requirements can vary depending on the jurisdiction and individual circumstances. It’s essential to consult with the local insurance regulations and the insurance provider to understand the specific requirements and options available.
Are there situations where teens without a car still need auto insurance?
Yes, there are situations where teens without a car may still need auto insurance. Some common scenarios include:
- Driving a borrowed or rented vehicle: If a teen occasionally drives a vehicle that is borrowed or rented, it’s important to ensure that the vehicle is properly insured. In such cases, they may need to be added as a driver to the owner’s insurance policy or purchase a temporary auto insurance policy.
- Household insurance requirements: If the teen lives in a household where auto insurance is mandatory for all licensed drivers, they may need to be listed on the policy, even if they don’t own a car. Household insurance requirements vary by insurance company and jurisdiction.
- Non-owner insurance: Teens without a car who frequently drive vehicles owned by others may consider non-owner insurance. Non-owner policies provide liability coverage when driving vehicles they do not own.
What is non-owner insurance, and should teens consider it?
Non-owner insurance is a type of auto insurance that provides liability coverage for individuals who do not own a car but drive vehicles owned by others. If a teen frequently drives cars owned by friends, family, or through car-sharing services, non-owner insurance can offer liability protection in case of accidents. It’s advisable to consult with an insurance professional to determine if non-owner insurance is appropriate for the teen’s situation and driving habits.
Can my teenager drive my car without insurance?
In many cases, teens without a car can stay on their parents’ auto insurance policy, provided they meet certain criteria. Insurance companies generally allow parents to include their licensed teen drivers on their policy, even if the teens don’t own a car. It’s important to inform the insurance company about the licensed teen driver and disclose the circumstances accurately to ensure proper coverage.
Do you have to add a teenager to your car insurance? Will this increase the parents’ insurance rates?
Adding a teen driver to a policy, even without a car, can potentially increase the parents’ insurance rates. Insurance companies consider teen drivers as higher risk due to their relative lack of experience and statistical data regarding teenage drivers. However, the specific impact on insurance rates will depend on various factors, including the insurance company’s policies, the teen’s driving history, and the overall coverage and limits of the policy.
Are there any alternatives to traditional auto insurance for teens without a car?
If you need car insurance for teenagers without a car, there may be alternatives to traditional auto insurance. One option is to consider “named driver exclusion” or “deferred driver” policies, which exclude the teen from coverage unless they are explicitly listed as the driver of a specific vehicle.
Another option is to explore non-owner insurance, as mentioned earlier, if they occasionally drive borrowed or rented vehicles. It’s important to discuss these alternatives with insurance providers to determine the most suitable solution based on the teen’s specific circumstances.
Can you insure a car without a license?
So, can you insure a car without a driver’s license? In most cases, you cannot insure a car without a valid driver’s license. However, some states may allow individuals without a license to purchase insurance for a vehicle they own, such as for storing it or protecting it from damage.
Can my child drive my car without insurance?
Yes, your child can drive your car with your permission, even if he is not insured. This is known as “permissive use” – where someone not listed on your insurance policy drives your car with your permission.
Can I drive my parents’ car without being on their insurance?
In many cases, yes, you can drive your parents’ car without being listed on their insurance policy. Insurance policies often include coverage for permissive use, meaning that if your parents give you permission to drive their car, you may be covered in the event of an accident.
What happens if i don’t add my teenager to my car insurance?
So, what happens if you don’t add a driver to your insurance? In most states, it is illegal to drive without insurance. If your teenager gets into an accident and is found to be uninsured, you could face legal penalties and be held financially responsible for any damages or injuries resulting from the accident.
Do you need insurance to get a driver’s license?
Usually, you don’t need insurance to get a license. However, you typically need proof of insurance to register a vehicle. You can use a friend’s or family insured vehicle to take your driver’s license test.
Do I need insurance to learn to drive?
You don’t need car insurance to learn to drive if you’re practicing with a licensed instructor. However, if you’re learning to drive in your own vehicle, it’s a good idea to have insurance coverage in case of any accidents or damage that may occur during practice sessions.
Can I get liability insurance without a car?
You can typically get liability insurance without owning a car. Non-owner car insurance provides liability coverage for drivers who frequently borrow or rent vehicles but don’t own one themselves.
Can a 17-year-old get their own car insurance?
A 17-year-old can’t get their own car insurance policy independently because they’re considered minors. A 16-year-old cannot get their own car insurance as well. A parent or guardian typically needs to co-sign the policy due to their status as a minor. Additionally, they can be added to a parent or guardian’s policy as a named driver.
Can a 16-year-old insure a car?
Some insurance companies may allow a 16-year-old to purchase insurance in their name with a co-signer, such as a parent or guardian.
Can you drive with a provisional license without insurance?
In most states, you cannot legally drive with a provisional license without car insurance. Even though you are learning to drive and may have restrictions on when and where you can drive, you may still need insurance coverage.
What happens if you drive a car without insurance?
In most states, driving a car without insurance is illegal. If you’re caught driving without car insurance, you could face fines, license suspension or revocation, and even jail time in some cases.
How old do you have to be to get car insurance?
The minimum age requirement to obtain car insurance varies depending on the insurance company and the state’s auto insurance laws for minors. Typically, you can purchase your own car insurance policy once you reach the age of 18.
Can you get fined for not having car insurance?
Yes, in many states, you could get fined for not having car insurance. The specific penalties for driving without insurance vary depending on the laws in your jurisdiction. However, common consequences may include fines, license suspension or revocation, vehicle impoundment, and even legal action.
Can you get car insurance without a license?
Getting car insurance without a driver license is possible, but most car insurance companies typically require drivers to have a valid driver’s license to purchase a policy. However, some insurers may offer special insurance with no license for individuals who have a permit or learner’s license and are learning to drive.
Do you need insurance if you have a license but no car in Florida?
You are not legally required to have car insurance if you have a driver’s license but do not own a vehicle. However, if you plan to drive a car that is registered in someone else’s name, it’s crucial to ensure that the vehicle is properly insured.
Do you need insurance if you have a license but no car in PA?
According to Pennsylvania auto insurance laws and regulations, driving without insurance in Pennsylvania is illegal. However, as long as you’re not driving the vehicle or don’t possess a registered vehicle, you’re not legally obligated to have car insurance.
Do you have to add your teenager to your car insurance in Michigan?
In Michigan, if your teenager is licensed and living with you, you typically need to add them to your car insurance policy. Michigan’s auto insurance laws for minors generally require all licensed drivers in the household to be listed on the insurance policy.
Do I have to add my teenager to my car insurance in Texas?
You don’t need to add your teenager to your auto insurance policy if they only have a learner’s permit. However, insurance companies expect all licensed drivers in the household to be listed on the policy. So, once your teenager obtains an official license, you can then add them as a driver to your policy.
Can you go to jail for driving without insurance in Florida?
Driving without car insurance in Florida can lead to serious consequences, including potential jail time. Florida car insurance requirements suggest that all drivers must carry auto insurance that meets certain minimum coverage requirements.
Florida state minimum car insurance requirements are:
- $10,000 for personal injury protection (PIP)
- $10,000 for property damage liability (PDL)
How much does it cost to add a permit driver to insurance?
Adding a permit driver to an existing auto insurance policy typically doesn’t incur any additional costs. When a permit driver is learning to drive using a parent’s car under parental supervision, it’s wise to include them on the existing insurance policy.
How much is teenage car insurance average cost per month?
The average cost of car insurance for teens who have their own policy is $217 per month for liability coverage, while full coverage averages $457 per month.
How long do you have to add a new driver to your insurance policy?
It’s generally advisable to add a new driver to your policy as soon as they become licensed or start driving your registered vehicle regularly.
Most insurance companies require policyholders to notify them of any changes to their household or drivers within a certain grace period, typically ranging from 30 to 60 days.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.