Adding a teenage driver to your Indiana family car insurance coverage: what you should know

Teen drivers in Indiana are at greater risk for auto collisions. To help address this risk, the state of Indiana has unique licensing and insurance requirements for teen drivers. If you are considering adding a teenage driver to your Indiana family car insurance coverage, there are a few things you should know.

Graduated driving privileges

Indiana is one of a growing number of states with a Graduated Driving License (GDL) program for new and teen drivers. A GDL is designed to give new drivers (especially teens) more time driving under supervision and with progressively less restrictions while gaining valuable driving experience.

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Indiana teens looking to attain their driver's license must first successfully obtain state-issued learner’s permit and have that for 180 consecutive days. Indiana teens may obtain a learner's permit if:

• They are at least 15 years old
• They are enrolled in a state-approved driver education program
• They can show proof of enrollment in an approved driver education program by presenting a valid Certificate of Driver Education Enrollment from the program
• They can present acceptable documents of identification
• They can pass a vision screening test
• They can pass a driving and driving laws knowledge examination

Any state-approved driver education program must consist of classroom/online instruction and at least 6 hours of behind-the-wheel instruction with an approved driver education provider.

Indiana law requires persons with a learner’s permit to complete at least 50 hours of supervised driving practice with a licensed instructor or with a licensed driver who is at least 25 years old, or a spouse who is at least 21 years old.  At least 10 hours of that supervised driving practice must be nighttime driving.  The practice time must be maintained in a Log of Supervised Driving and presented to the state at the time of application for a driver’s license. (This log must be signed by a parent or legal guardian.)

Indiana teens 16 or 17 years old who have successfully met the terms and requirements of obtaining and holding a learner’s permit can then be issued a probationary driver's license. When an Indiana teen is driving with a probationary driver’s license, special rules and restrictions apply. If you have an Indiana probationary driver's license:

• Every passenger in the vehicle that you are driving must wear a seat belt even if the vehicle is a truck or a sport utility vehicle
• You may not use any type of telecommunication device while driving except to make emergency 911 calls
• You may not drive between 10 p.m. and 5 a.m. for 180 days after getting your license
• After you have driven for 180 days, you may not drive on Saturdays and Sundays between 1 a.m. and 5 a.m.; Sunday through Thursday, after 11 p.m.; and Monday through Friday, before 5 a.m.
• You may drive at any time if you are traveling to or from work, school, or a religious event, or if you are accompanied by an individual with a valid Indiana driver’s license who is 25 years or older
• You may not drive with passengers for 180 days after getting your license, unless you are also accompanied by a licensed instructor, an individual with a valid Indiana driver’s license who is 25 years or older, or a parent, guardian, or step-parent who is 21 years or older
• You may drive with your child, sibling, or spouse during the hours allowed by law

Indiana teens successfully completing the learner’s permit phase and the probationary license phase can then apply for an unrestricted driver’s license when they turn 18 years of age.

(For a full explanation of driver’s license requirements for Indiana teens, click here.)

Insurance/Financial responsibility

If an Indiana teen is younger than 18 years of age when s/he applies for a learner's permit, s/he must have a parent or guardian sign an agreement of financial liability. This agreement essentially states that the parent/guardian will pledge financial responsibility for the teen driver, and agreeing to post a substantial bond or to acquire insurance coverage for the teen driver.

Indiana state law requires liability insurance coverage for all licensed drivers in the amounts of:

• $25,000 for individual bodily injury with a $50,000 total for bodily injury liability –per-accident
• $10,000 for property damage liability
• $25,000 uninsured motorists bodily injury coverage
• $10,000 uninsured motorists property damage coverage
• $50,000 underinsured motorists bodily injury coverage

(Drivers are allowed to opt out of the uninsured and underinsured coverage levels if they formally file a letter with the state.)

The state of Indiana is one of the few states that allow insurers to require the addition of teen drivers to insurance policies when the teen obtains a learner's permit. Many insurers add the teen automatically, raising insurance rates in the process.

Costs and discounts

Adding a teen driver to your Indiana family car insurance coverage can be expensive. According to the state, the average insurance cost for Indiana teen drivers is about $2,000 per year. The cost can be slightly reduced through several programs offered by various insurers such as a high GPA program and a teen certified safe driving course. Savings for participation can be as much as 10 to 15 percent.

Keeping the insurance cost of teenaged drivers low is also possible through using a vehicle listed on the safe car lists of the insurer. You can also lower the cost by bundling the auto insurance with another insurance type such as life or house insurance.

If you are insured by an Indiana insurance company that does do not add your teen drivers automatically to your family’s car insurance policy, be sure you notify your agent when your teen is starting the process of obtaining their Indiana learner’s permit. During that call, you can discuss the amount of coverage using the state’s minimum coverage levels as a starting point.

If you need to find an insurance agent or company that can help make the transition for your teen drivers a safe and enjoyable experience (and affordable for your family budget) let Reply! help you and your family. We can connect you to local insurance professionals with the tools and experience to ensure you and all your family’s drivers are well-protected.