Auto Insurance: Immigrants And Legalities

In the United States, undocumented immigrants can get car insurance, but the process depends on where they live and the insurance company's policies. While some insurers may not serve undocumented immigrants, others like State Farm, Progressive, and Allstate do. However, undocumented immigrants must have a driver's license to get car insurance, and most states require U.S. citizenship for obtaining a license. As of 2023, only 15-18 states and Washington, D.C., allow unauthorized immigrants to obtain driver's licenses. This means that undocumented immigrants may face challenges in getting car insurance in the remaining states.

Can undocumented immigrants get auto insurance?

Yes, undocumented immigrants can get auto insurance, but it depends on where they live. Some states make it easy for undocumented immigrants to buy auto insurance, but several states have regulations banning sales to them.

As of October 2022, the majority of states make getting a driver's license very difficult for undocumented immigrants. However, 18 states and Washington, D.C., allow unauthorized immigrants to get driver's licenses. These include California, New Jersey, New York, Hawaii, Oregon, Nevada, Utah, Colorado, New Mexico, Washington, Illinois, Virginia, Maryland, Delaware, Connecticut, Vermont, and Washington, D.C.

If you live in a state that does not allow undocumented people to get driver's licenses, you might be able to get one through the Deferred Action for Childhood Arrivals (DACA) program. This is a federal program that allows people who meet certain criteria to get a Social Security number and employment authorization documents, enabling them to get a driver's license in any state.

To qualify for DACA, you must:

• Have immigrated to the U.S. before your 16th birthday.
• Be under 31 years old as of June 15, 2012.
• Have lived in the U.S. consistently since June 15, 2007.
• Have been physically present in the U.S. on June 15, 2012, and at the time of submitting your DACA request.
• Have had no lawful immigration status on June 15, 2012, or when your DACA request was filed.
• Have completed at least a GED or high school, are currently enrolled in school, or are an honorably discharged veteran.
• Have no criminal record.

Once you have a driver's license, you can get auto insurance. However, insurance companies may charge higher rates for undocumented immigrants due to their lack of driving history and U.S. citizenship.

What are the penalties for driving uninsured?

Driving without insurance is a serious offence and can result in various penalties, including fines, suspension of your license, and even imprisonment. Here are the consequences of driving uninsured in more detail:

Fines

If caught driving without insurance, you will likely have to pay a fine. The amount of the fine varies depending on the state and the number of days your coverage has lapsed. For example, in Nevada, the fine for a first offence ranges from $250 to $1,000, depending on the length of the lapse. For a second offence, the fine increases to $500 or $1,000, and for a third offence, it can be as high as $1,000.

License Reinstatement Fee and Suspension

In addition to fines, you may have to pay a license reinstatement fee to get your driving privileges back. In Nevada, the reinstatement fee is $250 for a first offence, $500 for a second offence, and $750 for a third offence. Your license may also be suspended until you can provide proof of insurance. In Nevada, the suspension period is 30 days for a third offence, but it may vary in other states.

SR-22 Filing

In some states, such as Nevada, you may be required to file an SR-22 form, which proves that you have the minimum required auto insurance. This form needs to be filed with the DMV and can stay on file for up to three years. The SR-22 filing can increase your insurance rates and incur additional costs.

Difficulty in Obtaining Insurance

Having a history of driving without insurance can make it challenging and expensive to find reasonable car insurance rates in the future. Insurance companies may consider you a high-risk driver and either deny coverage or charge higher premiums.

Legal Consequences

Driving without insurance is a criminal offence in many states. If caught, you may face legal penalties such as fines, suspension of your license, and even imprisonment. In some cases, driving without insurance may also result in a criminal record, which can have further implications.

Accident Liability

If you are in an accident while driving without insurance, you will be personally liable for any damages, injuries, and losses that occur. This can result in significant financial burden and legal consequences. Even if you are not at fault for the accident, driving without insurance can complicate the process of pursuing compensation from the at-fault party.

How do you apply for a driver's license as an illegal immigrant?

The process for applying for a driver's license as an undocumented immigrant varies depending on the state. While some states only grant driving privileges to those with lawful immigration status, others allow individuals who can't provide proof of legal presence in the United States to obtain a driver's license.

Documents Required:

• Proof of identity: This can include a passport, consular card, or electoral card.
• Proof of residency: Documents such as a rental or lease agreement, mortgage or utility bills, school, medical, insurance, bank, or employment records.
• Declaration of ineligibility for a Social Security Number (SSN): Applicants must swear that they are ineligible for an SSN and unable to submit proof of their lawful presence in the United States.

Steps to Apply:

• Make an appointment or visit a driver's license processing center.
• Submit the required documents, pay the fees, and pass the written exam and driving skills test.
• Most states provide study materials for the tests on their official Department of Motor Vehicles (DMV) website.

It is important to note that the specific requirements and processes may vary by state, so it is recommended to check with the relevant state authorities or consult their website for detailed information.

What are the best auto insurance companies for immigrants?

Immigrants, including those without legal documentation, can obtain auto insurance in the United States. However, the process can be challenging due to varying state requirements and documentation needs. Here is a list of some of the best auto insurance companies for immigrants:

Geico

Geico is often praised for its affordable rates, with a minimum coverage rate of $30 per month. They also offer multilingual customer service, making them a top choice for immigrants. Geico has an up-to-date mobile app and website, making policy management convenient for its customers.

Progressive

Progressive is known for its full coverage for immigrants, including affordable rates for high-risk drivers. They also offer a "Snapshot" feature that helps low-mileage, safe drivers save money. Obtaining a Progressive auto insurance quote online is straightforward.

State Farm

State Farm is one of the largest insurance companies in the US and offers high levels of customer satisfaction. They provide affordable rates for people with speeding tickets or accidents on their records and have a wide variety of discounts available.

Allstate

Allstate offers multiple coverage options and additional savings programs. While their customer service ratings are lower than average, they are still a reliable option for immigrants.

Erie

Erie provides affordable rates, flexible coverage options, and personalized customer service. However, their coverage may not be available in all states.

Liberty Mutual

Liberty Mutual operates in various states and offers nationwide coverage. They provide discounts for bundling multiple insurance policies and have convenient online account management tools.

Nationwide

Nationwide accepts foreign driver's licenses and offers flexible payment options. They also provide discounts for safe driving, making them an attractive choice for immigrants.

Farmers

Farmers Insurance offers comprehensive coverage options and accessible customer service through multiple channels. They also have discounts for students with good grades, which can benefit immigrant families with student drivers.

Travelers

Travelers accepts foreign driver's licenses and offers customizable policies. They are a financially stable company with a strong reputation, providing reassurance to their customers.

American Family

American Family offers flexible payment options and multi-policy discounts. They also have a range of coverage options to suit different needs.

AAA

AAA is known for its extensive roadside assistance services and competitive rates for members. They also have excellent customer service, making them a reliable choice for immigrants navigating the insurance process.

It is important to note that insurance rates for immigrants may be higher than average, especially if they are considered "inexperienced drivers" due to a lack of US driving history. Additionally, immigrants may face challenges in obtaining a driver's license, depending on their state of residence and immigration status.

What states allow undocumented immigrants to get a driver's license?

As of October 2023, 19 US states, the District of Columbia, and Puerto Rico allow undocumented immigrants to obtain driver's licenses or permits. These states include:

• California
• Colorado
• Connecticut
• Delaware
• Hawaii
• Illinois
• Maryland
• Massachusetts
• Minnesota
• Nevada
• New Jersey
• New Mexico
• New York
• Oregon
• Rhode Island
• Utah
• Vermont
• Virginia
• Washington

Some states, such as California, require all applicants to have their vehicles insured. However, the specific requirements vary depending on the state and insurance provider. While some states have made it easier for undocumented immigrants to obtain driver's licenses and auto insurance, others have implemented regulations banning sales to them.

In addition to the states mentioned above, undocumented immigrants may also be able to obtain a driver's license through the Deferred Action for Childhood Arrivals (DACA) program, which is available throughout the United States. To be eligible for DACA, individuals must meet certain requirements, such as immigrating to the US before their 16th birthday and having no lawful immigration status on June 15, 2012.

Frequently asked questions