We’re used to driving milestones in America: Sweet 16 leads to a driver’s license and turning 18 brings you into adulthood and voting. In several more years at 25, you’re old enough to rent a car and have more credit history and purchasing power for large expenses, like a new car.
While it seems logical that you could buy car insurance at 16 when you get your license, the truth is that in most states, you must be 18 or older to purchase a policy. This is because you typically have to be an adult to enter into a legal contract — which a car insurance policy is.
Find out how the age of majority plays into buying car insurance, purchasing exceptions for emancipated minors and what states require and allow when it comes to drivers.
- Drivers under the age of 18 typically need a parent to help purchase car insurance or co-sign on a car loan.
- The “age of majority” is the age a state considers a minor a legal adult. In most states, it’s 18.
- Contracts and legally binding documents cannot be signed by a minor. Car insurance companies generally will not allow minors to sign on their own policy as they are not legally obligated to its conditions.
What is the age of majority?
If you can’t purchase car insurance when you get your driver’s license, when can you? Generally speaking, an insurance policy is considered a legally binding contract with legal ramifications. To legally sign an insurance policy or other contract, a person must have reached the “age of majority.” In most cases, you must be the age of majority as defined by your state to buy a car insurance policy. That is typically age 18.
This is the age that the state you live in considers a child to have become an adult. Once a person reaches the age of majority, they can consent to medical treatment, sign a contract and vote.
Age restrictions for buying car insurance depend on each state’s insurance laws — in all states and Washington, D.C., it is at least 18 — but it depends on an insurance company’s policy about a minor signing a contract. Unless a state law imposes a minimum age, there is not usually a minimum age at which to get car insurance coverage. However, if you are considered a minor in your state, you will need a parent or guardian to sign or co-sign on the car insurance policy.
A couple of states have made the age of majority even higher. Alabama and Nebraska put their age of majority at 19, so drivers in those states cannot legally enter into a contract until 19. In Mississippi, the age of majority is 21.
Which state has the youngest driving age?
Generally, teens start driving at the age of 16. This age varies across states — where some teens are fully licensed at 16 and others are starting with a permit. In the U.S., North Dakota and South Dakota have the youngest fully licensed driving age of 16. Teens can begin getting their learner’s permit as early as 14.
Graduated licensing laws are set at the state level, so when your teen starts driving and needs insurance differs depending on where you live. Most states start the driver’s license process around 15, allowing teens to get a learner’s permit.
However, some states allow learner’s permits as early as age 14, while others make teens wait until 16 to get a permit. Alaska, Arkansas, Iowa, Kansas, North Dakota and South Dakota allow 14-year-olds to get behind the wheel with a learner’s permit.
Learner’s permits usually come with stringent restrictions. For example, in Alaska, drivers must always be supervised by a parent or guardian. They must accumulate 40 hours of supervised driving during the permit stage, which includes 10 hours in “progressively challenging circumstances,” such as inclement weather and nighttime conditions.
While the age limit for teens varies regarding a license, there is minimal leeway in the age limit to sign an insurance policy.
Can a teenager get their own car insurance policy?
In most states and situations, minors can’t get a car insurance policies without a parent or guardian. This is because a car insurance policy is a legal document that needs to be agreed to and signed by an adult. However, there are exceptions to this rule — if a teen is emancipated, for example.
In most cases, if a teen lives at home and doesn’t own a car, the simplest solution is to let them drive your car and add them to your policy as a covered driver. But be prepared for a significant rate increase — adding a teen driver increases car insurance rates drastically.
This is especially true for 16-year-olds: Adding a 16-year-old female driver to a parent’s policy costs $4,144 per year, on average. But it’s still cheaper to insure a teen driver under a parent’s policy than on their own.
It can be a bit more complicated if a teen wants to buy their own car and get their own insurance policy. State laws vary on the minimum age to own a car. A minor must have a parent’s name on the title and registration in some states. This means the parent must also be on the insurance policy as they own the vehicle.
Other states allow teens to be the sole owner of a car and leave it up to insurers to determine a minimum age to buy a policy:
- In South Carolina, you can own a car at 17.
- Ohio’s Bureau of Motor Vehicles (BMV) requires those younger than 18 to have a parent’s minor consent form on file to title a vehicle. A parent or legal guardian must accompany a minor when they appear in front of the Clerk of Courts title office staff to have a car titled.
So, while a teen can technically buy a car in most states and even title it in their own name when it comes time to register and insure it, an adult will most likely have to be involved.
Parents’ guide on the best and cheapest way to insure teenage drivers
Why can’t teens get their own auto insurance policies?
In a nutshell, it comes down to legalities. Insurance companies don’t write policies for minors on their own because they legally do not have to honor any contract they sign. Since they’re not a legal adult, they’re not liable the same way as an adult if they’re involved in an accident or moving violation.
Additionally, a minor cannot enter into a contract or own property. In most cases, the teen’s parents own the property until the child becomes an adult. In many states, a parent will have to co-sign on a loan for a car or any other contracts the teen enters into. This means that while a teen can buy a car, the parent will be the legal owner.
While a minor can’t legally sign a contract according to most state laws, they have the right to void the contract before they reach the age of 18. Since a minor can void a contract, car dealers and insurance companies are apprehensive of doing business with anyone who has not reached the age of majority.
Since there isn’t a minimum age for car insurance and so many challenges around insuring a minor, all of this makes it difficult for a teen to get their own insurance policy required to register a vehicle. So, while a teen can title a car in their own name, registering it will require the help of an adult.
If you are a minor and want to own and insure a vehicle on your own, check with your state’s Department of Motor Vehicles and insurance regulator to see if there is a minimum age set and what extra measures you may need to take to register and insure a car until you turn 18.
Emancipated minors can sign contracts
Some teens fall into a special category of emancipated minors — meaning while they are still under the legal age of 18, they are considered lawfully legal adults. The question of how old you must be to insure a car becomes moot when an emancipated minor is involved. Emancipated minors can legally buy, register and insure a vehicle in their own names.
Emancipation means that legally a minor is freed from the control of their parents or guardian and the parents are freed of the child’s responsibility.
There are various ways that a minor can be emancipated, but the most common reasons are:
- Minor enlists in the military: Enlisting as a minor requires parental consent.
- Getting married: In most states, this requires parental consent.
- A court order from a judge: This doesn’t require parental consent.
Once a minor has been emancipated, they can legally enter into a contract, so the question of what age you can get car insurance is no longer an issue. Emancipated minors can sign a purchase agreement for a car and an insurance policy. Emancipation laws vary by state.
Final thoughts
The bottom line — minors cannot sign contracts or be legally bound to a car insurance policy. This makes purchasing insurance on their own for teens difficult, unless they’re an emancipated minor. Generally, parents and guardians need to help purchase car insurance or co-sign on car loans for drivers under 18.
You might also be interested in- How much is car insurance for a 16-year-old?
- How much is car insurance for a 17-year-old?
- How much is car insurance for an 18-year-old?
- How much is car insurance for a 19-year-old?
- How much is car insurance for a 20-year-old?
- Guide to getting the best car insurance for new drivers
- Guide to insure cheap cars for new drivers
- How long are you considered a new driver?
- Best car insurance for young adults
- Get cheap car insurance for young drivers
Sources
World Population Review. “Age of Majority by State 2022.” Accessed July 2024.
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