Insurance/Finance

Understanding Unlicensed Car Insurance

Unlicensed car insurance

The idea of ​​buying car insurance when you don’t have a driver’s license seems counterintuitive: why would you need car insurance if you can’t drive legally?

However, car insurance without a license is possible.

Now, although it is possible to obtain car insurance without a license, it is not a common procedure that you can carry out in any insurer;

since most companies will ask you for a valid driver’s license number when you apply.

So how can you get car insurance without a license ? And why would you want to?

In reality, there are several scenarios in which car insurance without a license is synonymous with necessity and practicality.

Maybe you own a car and don’t have a license, but your spouse or children will be driving and need auto coverage.

Or maybe you can’t drive anymore, but you have a car handy so someone can take you to work or appointments. Or maybe you have a permit and are working towards a license.

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Unlicensed car insurance: Reasons to need it

There are several scenarios where buying auto insurance without a license might be a good idea.

Below you will find some of the reasons to obtain an insurance policy for your car even if you do not have a valid license

Get car insurance for a minor driver

Most states do not allow people under the age of 18 to enter into contracts.

That means if you have a relative like a teenage son who drives, you may want to be included in your car insurance policy , even if you don’t have a license yourself.

Car insurance is particularly expensive when it comes to college and high school age youth, so it’s worth looking into discounts to try to offset those high rates.

Get car insurance when you have a personal driver

If you have a personal driver to take you from one place to another, you may not need a license, but you will still need auto insurance for all of your vehicles.

But it’s not just wealthy people who have drivers, if you no longer drive due to age or health-related issues, but have someone who drives you to appointments or work;

you need car insurance even though you no longer be the one.

The cost of auto insurance starts to rise as you reach retirement age, as older drivers are considered riskier.

However, if you are not listed on your policy as the main driver, the age factor should not matter, and you can even apply for some discounts.

Get auto insurance with a permit

Most states offer provisional licenses to people learning to drive, usually called learner’s permits. If you are a teenager with a permit, you must be listed on your parents’ policy.

But if you have your own car and don’t have a family policy to sign up for, you may need to purchase auto insurance while you still have your permit.

However, if you are under 18, you will also need an adult on the policy.

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Get insurance for a vintage or collectible car

Let’s say you have a car worthy of a museum display, but you don’t actually drive it.

Sure, you may not need collision or personal injury coverage, but you’ll want to protect it from full or partial loss just like you would any other type of valuable or collectible.

Most of these types of auto insurance policies are sold by specialty insurers and may also include standard auto coverages in case you have a license and decide to drive one day.

Getting car insurance when health issues keep you from driving

If you are unable to drive due to a physical disability, but need a caregiver to drive you where you need to go, you may be able to insure your car and list your caregiver(s) as a covered driver.

In this case, your auto insurance can protect your vehicle even if you can’t drive it.

How to buy car insurance without a license

When you apply for auto insurance, you generally must include a valid driver’s license number.

If you don’t have a license, you can’t provide that number, and insuring an unlicensed driver isn’t something car insurance companies like. car insurance without a license.

But in some cases, you will be able to buy car insurance without a license.

Instead of listing your own driver’s license number, some companies allow you to apply for a policy using the primary driver’s name and license number.

That way, you’re on the policy, the cars you own are insured, but technically you’re not the driver.

Who can be the primary driver on a car insurance policy?

Any licensed driver can be named your primary driver, regardless of whether or not they live with you . If you are insuring a car for your spouse, you must list them as the primary driver.

If it’s for your teen, write his or her name. If you’re buying car insurance so a friend or caregiver can drive you places you need to include their name and their license information.

Insurers use driving records as one of the factors needed to calculate your car insurance premium.

That is why a driver’s license number is required. But if you won’t be the driver on your own policy, the insurer will set a rate based on the primary driver’s driving record.

Insurance providers want to set rates based on the likely activity of the vehicle. So, if someone else is going to be driving a vehicle, it makes sense for their driving record to be factored into the coverage rate.

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What is an excluded driver?

If you find a company that issues you a policy without a license, you may need to name yourself as an excluded driver. This means that your car insurance will not apply if you are driving.

You can’t drive your car if you don’t have a valid license, and your insurance company wants to make sure you know that.

The insurer does not give you permission to drive a car, only a valid driver’s license authorizes you to do so.

IMPORTANT: If you do not have a driver’s license, you cannot drive legally.

If you plan to get a license in the future, once you have it, you should contact your insurance company to be named as a driver on the policy; until then, you will not be covered, even if you have your license.

Keep in mind that your rates may change once you are licensed and added as a driver on the policy; As a new driver, you will likely receive a higher rating than your previous primary driver.

REMEMBER: not all insurers will allow you to include a main driver on the policy other than yourself.

If you don’t have a license, you may need to spend a little more time looking for a company that is willing to insure your car.

Many of the major auto insurance companies, like State Farm or Allstate , will deny your application if you don’t have a license. Therefore, you will have to knock on the doors of smaller regional providers.

Be careful when dealing with insurers that do not require any type of license information.

These are typically smaller companies, not major players, and you may not get the best price or coverage with them, as driving records determine the rates and coverage you’ll be offered.

An independent broker can help you locate unlicensed car insurance and guide you through the purchase process. They might also talk to you about other options if you can’t buy coverage yourself.

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Can you get car insurance with a suspended license?

We’ve covered several scenarios where you might need auto insurance despite not having a valid driver’s license. But it could also happen that your license was suspended.

There are several reasons why your driver’s license may be suspended. For example, being convicted of a DUI, having repeated traffic violations, or being in an accident without car insurance.

If your license is suspended, you cannot legally drive until it is reinstated. But that doesn’t mean you don’t need auto insurance.

In fact, if your license is suspended, you may need auto insurance to show the state that you’re protected.

You can prove your insurance coverage to the state by asking your insurer to send you an SR-22 compliance form.

An SR-22 , sometimes called a “Certificate of Financial Responsibility” or

“Certificate of Liability Insurance,” is a document that confirms to your state’s DMV that you have the state’s minimum amounts of liability coverage.

It is not a special type of policy, it is a regular auto insurance policy with an SR-22 form attached.

Any major insurer can submit an SR-22 form on your behalf, but is not required to accept you as a customer.

You will generally be considered a high risk driver and not all insurance companies are willing to insure that type of driver.

In fact, if you have a suspended license and need an SR-22 form, you may have to spend a lot of time and shop around to find a company that will sell you an affordable policy.

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