CarInsurance.com Insights
- You typically need to be 18 to buy your own car insurance policy. Car insurance is a legal contract, and most states don’t allow minors to enter into binding agreements.
- Three states set the age of majority above 18: Alabama and Nebraska require you to be 19; Mississippi sets it at 21. Teens in those states need a parent’s help even longer.
- The simplest option for most teens is being added to a parent’s policy as a covered driver. Adding a 16-year-old driver costs an average of $4,144 per year for females (and typically more for males) — still cheaper than a standalone teen policy, according to CarInsurance.com’s data.
- Six states allow learner’s permits at age 14: Alaska, Arkansas, Iowa, Kansas, North Dakota and South Dakota. But getting a permit earlier doesn’t change the contract-age rules for buying insurance.
- Emancipated minors are the exception. Once legally emancipated — through military enlistment, marriage, or a court order — a teen can buy, register and insure a vehicle in their own name.
What is the age of majority, and why does it affect car insurance?
You need to reach your state’s age of majority before you can sign a car insurance policy on your own. That’s because a car insurance policy is a legally binding contract — and in most states, contracts signed by minors aren’t enforceable. Insurers won’t issue a solo policy to someone who can legally walk away from it.
In 47 states and Washington, D.C., the age of majority is 18. Three states set it higher: Alabama and Nebraska require you to be 19; Mississippi sets it at 21. In those states, even an 18-year-old needs a parent or guardian on the policy.
Once you hit the age of majority in your state, you can sign contracts, consent to medical treatment, and buy a car insurance policy in your own name.
Which states allow teens to drive earliest — and does that change insurance rules?
Getting a learner’s permit early doesn’t move up the age at which you can buy your own insurance. The two rules operate independently.
Most states start the licensing process around 15 or 15½ with a learner’s permit. Six states — Alaska, Arkansas, Iowa, Kansas, North Dakota and South Dakota — allow permits at 14. North Dakota and South Dakota are among the few states that issue unrestricted licenses at 16, the youngest age in the country.
But regardless of when a teen gets behind the wheel, the contract-age rules still apply. A 14-year-old in South Dakota with a permit still needs a parent’s name on the insurance policy.
Can a teenager buy their own car insurance policy?
In most cases, no — not without a parent or guardian co-signing. Because insurance is a legal contract, insurers generally won’t write a standalone policy for someone under 18.
The most practical option for most families: add the teen to an existing parent policy as a covered driver. If the teen buys their own car, the parent will typically need to be on both the title and the insurance policy in states that require parental co-ownership of vehicles for minors.
State rules on vehicle ownership by minors vary. Ohio’s BMV requires a parent to co-sign when a minor titles a vehicle. In South Carolina, teens can own a car at 17. When in doubt, check with your state’s DMV before assuming a teen can title and register a vehicle on their own.
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Why won’t insurance companies write a policy for a minor?
Two reasons — legal exposure and enforceability.
A minor can void any contract they sign before reaching their state’s age of majority. That creates a real problem for insurers: if a 16-year-old signs a policy, gets into an accident and then disavows the contract, the insurer has limited recourse. Most companies won’t take that risk.
In most states, minors usually need an adult co-signer to legally register a vehicle. As a result, the car is typically registered in a parent’s name.
Can an emancipated minor get their own car insurance?
Yes. Emancipated minors are treated as legal adults for contract purposes, which means they can buy, register and insure a vehicle without a parent’s involvement.
Emancipation occurs in three ways: enlisting in the military (requires parental consent), getting married (though many states have now banned underage marriage entirely or require parental and/or judicial consent), or obtaining a court order (no parental consent needed). Once emancipated, the age restrictions on buying insurance no longer apply.
Emancipation laws vary by state, so the process and eligibility rules differ. If you’re in this situation, check with your state’s court system or a legal aid organization for specific requirements.
Frequently Asked Questions: Teen car insurance
Can a 16-year-old get car insurance in their own name?
In most states, no. A 16-year-old is a minor and can’t legally sign a binding contract. They’ll need a parent or guardian on the policy. The exception is if the teen has been legally emancipated.
What happens if a minor signs a car insurance policy?
The contract may not be enforceable. Minors have the right to void contracts before reaching the age of majority, which is why most insurers refuse to write solo policies for anyone under 18 in the first place.
Is it cheaper to add a teen to a parent’s policy or to get them their own policy?
Adding a teen to a parent’s policy is almost always cheaper. A standalone teen policy — if an insurer will even write one — typically costs more than the rate increase on a parent’s existing policy.
At what age can a teen get their own car insurance without a parent?
In most states, 18. In Alabama and Nebraska, 19. In Mississippi, 21. Emancipated minors are the exception — they can buy a policy at any age once emancipation is granted.
Do I need car insurance if I only have a learner’s permit?
Yes. A vehicle must be insured any time it’s driven on public roads, even with a learner’s permit. Most permit holders are covered under a parent’s existing policy — check with your insurer to confirm.
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