Teen in car being handed keys

Car Insurance and Your Driver’s Permit in NJ

Becoming a new driver is an exciting step towards independence. No more asking parents to drive you around or waiting to be picked up. You will need to get your driver’s license first, but you’re getting there! Keep in mind that your parents are likely as stressed as you are excited about this impending change. While they will almost certainly be worrying about your safety, they may also be wondering about how it all works with car Insurance and your driver’s permit as you begin operating the family car.

Is Car Insurance Required with a Driver’s Permit?

As a new, unlicensed driver with only a permit, you will be covered under the car insurance policy of the registered vehicle owner (your parent, for instance.) Their insurance carrier should be notified that a newly permitted driver will be coming on to the policy in the near future. The newly permitted driver usually will not be a rated driver, and will not impact the policy premium until licensed. When you obtain your probationary driver’s license, you will absolutely need to be covered as a rated driver on your own or on your parents’ car insurance policy.

Can Teens Be Added to Their Parents’ Policy?

As a new driver, you can be added to your parents’ car insurance policy, which is usually the best option. When there is a substantial policy change like adding a teen driver, it’s a good time to shop and compare rates. Don’t just assume you’re getting the best deal by being added to your parent’s existing car insurance policy. Other carriers may be able to save you money for the same coverages.

Understanding the Cost of Car Insurance for Teen Drivers

There is no question about the higher cost of auto insurance for young drivers. While you may not be paying the insurance premium directly as you get your permit, don’t be surprised when your parents begin talking about summer job ideas for you. According to an independent study published by Insurance.com, the average annual car insurance premium rose 152% per household in 2017 when adding a teen driver to an existing auto policy. The average annual increase for males was 176% compared to females with a 129% premium increase. That’s an average increase of over $600 per year!

Final Thoughts on Car Insurance and Your Driver’s Permit

Learning to drive can be fun and exciting, but be sure to take a “safety-first” approach EVERY time you get behind the wheel. Pay attention to road signs, traffic lights and other motorists. Your parents are counting on you to be safe on the road and so is every other driver out there. About to earn your driver’s license? Your family can’t go wrong with Plymouth Rock Assurance! You can also read here for more information about the car insurance quote process and the benefits of car insurance as well as more information about the common mistakes when purchasing. so that you don't make them!

As the premier car insurance provider in New Jersey, Plymouth Rock offers a unique customer experience with options to manage your policy digitally right from your phone, friendly representatives who are available to answer your questions, and exclusive discount programs. See if you qualify for savings through discounts like reduced rates for students with good grades, students who have completed a safe driving course, and discounts for students away at college.

Call 855-993-4470, get your free quote online, or find an agent and learn more about car insurance and your drivers permit. If you need additional information it can be found on our Contact Us page.