Do you need car insurance with a learner’s permit? (2022)


While you can spot a few student driving discounts here and there, these four companies go above and beyond to cover teen insurance prices. This is especially useful if you have a teenager in your household who is wondering if they need insurance with a learner’s permit so early in the game. Let’s take a closer look at how these four companies are cutting young driver costs and how they rank in our recent study.

Geico is known to be affordable for a range of drivers, mainly due to its extensive discount plans. It’s also the only group on our list that offers a discount for continued seat belt use, an especially hot topic for teens.

Geico came in second place in our 2021 study, only behind USAA, which isn’t open to all drivers. The company is highly respected in the industry, earning a 78 out of 100 from Consumer Reports and an A++ for financial stability from insurance reviewer AM Best.

The most notable discount is for good students between the ages of 16 and 24 who maintain a B average in a full-time program. These drivers can earn up to 15% off their premiums on select coverages.

Good driving is the best way to get a solid Geico auto insurance discount. If your teenager goes five consecutive years without an accident, he could receive up to 26% off his premium.

For more, read our full Geico review.

Although the company is primarily known for being the best in the business when it comes to roadside assistance, AAA members can also purchase car insurance through local branches. Each state offers its own coverage under an individual branch that falls under the AAA name, so it’s important to note that discounts may vary. For example, AAA Auto Club Enterprises Insurance is the full title of the company based in California and New England.

Depending on your area, you could get significant discounts for your new driver with AAA car insurance — even over 46% if you have a student who spends most of their time in college without a car. AAA also rewards good grades and safe driving habits.

To learn more, read our full review of AAA insurance.

This Fortune 500 company is a stable bet for car insurance, especially if you add a teenager with a learner’s license or a new license. Discounts range from accident-free driving and defensive driving lessons to having a student attend home or college.

State Farm Auto Insurance also offers the Steer Clear program, a safe driving app specifically designed for drivers under 25 with a clean driving record. Young drivers can take safety lessons on the app, get feedback from mentors, and even earn State Farm certification.

To learn more, read our full review of State Farm Insurance.

If you’re looking for a small company with great rates for teens, check out our Erie Insurance review. You should note that Erie is only available in 12 states in the Midwestern and Eastern regions of the United States.

Erie offers a whole category of discounts geared towards young drivers, including those with good grades and teens who have completed accredited driver education courses. It also offers the out-of-home discount when a student leaves the car at home most of the year. Erie says rates go down as new drivers gain another year of experience.

To learn more, read our full review of Erie insurance.


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