Suspended License? Auto Insurance Options

Can I Get Auto Insurance With a Suspended License?

It is possible to get car insurance with a suspended license, but it can be challenging. A suspended license will likely result in higher insurance premiums due to insurers perceiving you as a higher risk. Your options may be limited, and you will likely have to pursue coverage with a non-standard auto insurance carrier.

Reasons for a suspended license

A driver's license can be suspended for a variety of reasons, which can be broadly categorized into driving-related and non-driving-related or finance-related reasons. Here are some common reasons for a suspended license:

Driving-Related Reasons:

• Driving under the influence (DUI) or while intoxicated (DWI): Driving under the influence of drugs or alcohol is illegal and can result in a license suspension. The specific consequences vary by state, with some states imposing longer suspension periods for subsequent offenses.
• Refusal to take a breathalyzer, blood, or urine test: In some states, such as New Jersey, refusing to take a breathalyzer test after a DUI arrest can result in penalties similar to a DUI conviction, including license suspension.
• Reckless driving: This includes behaviors such as excessive speeding, racing, or passing a vehicle with oncoming traffic, which demonstrate a blatant disregard for safety.
• Driving without insurance: Most states require drivers to carry a minimum amount of liability insurance. Driving without insurance can lead to a license suspension.
• Accumulation of driving record points or tickets: Many states use a point system for traffic violations, and accumulating a certain number of points within a specific time frame can result in a license suspension.
• Hit-and-run accidents: Leaving the scene of an accident without providing the required information is a serious offense and can result in a license suspension.
• Medical complications: In some cases, a driver's license may be suspended due to medical conditions that impair driving ability, such as epilepsy, cognitive decline, or consciousness disorders.

Non-Driving-Related or Finance-Related Reasons:

• Failure to pay traffic tickets, child support, or other financial obligations: Not paying traffic tickets, child support, or financial obligations related to an accident can result in a license suspension.
• Failure to appear in court: In some states, failing to appear in court, even for a non-driving-related matter, can lead to a license suspension.
• Illegal use of a license: Using a license for underage privileges, such as purchasing alcohol, or misrepresenting your age can result in a suspension.

It's important to note that the specific laws and consequences related to license suspension vary by state, and it's always best to consult with a legal professional for specific guidance.

Getting insurance with a suspended license

A suspended license can make the process of getting car insurance more difficult, but it is not impossible. Here are some things to keep in mind when seeking insurance with a suspended license:

Reasons for License Suspension

Firstly, it is important to understand the reasons why a license may be suspended. Common reasons include:

• Driving under the influence (DUI) or while intoxicated (DWI)
• Unpaid traffic tickets
• Accumulation of a high number of driving license points
• Driving without insurance
• Lapse in auto insurance coverage
• Medical conditions impacting driving ability, such as epilepsy

Insurance Requirements During License Suspension

Even with a suspended license, there are certain situations in which you may still need to maintain car insurance:

• To avoid a gap in coverage, which can lead to higher rates when reinstating your license.
• To comply with state requirements. In most states, a registered car must be insured even if the driver's license is suspended.
• To satisfy the terms of a loan or lease agreement. Lenders typically require you to maintain insurance on a financed or leased vehicle.
• To obtain a hardship or restricted license, which allows driving for specific purposes, such as commuting to work or school.

Finding Insurance with a Suspended License

When seeking car insurance with a suspended license, you may encounter challenges as some insurance companies may not offer coverage to high-risk drivers. Here are some options to consider:

• Apply for a hardship or restricted license, which may make it easier to obtain insurance.
• Shop around and compare quotes from different insurance providers, including those specializing in high-risk drivers.
• Consider non-standard insurance providers or non-owner car insurance policies.
• Obtain an SR-22 or FR-44 form, which is required in some states to demonstrate financial responsibility and compliance with minimum insurance requirements.
• Maintain continuous coverage to avoid lapses, as insurance companies may view gaps in coverage as a red flag.
• Take advantage of discounts, such as those offered for defensive driving course completion or good grades.
• Choose a higher deductible to lower your overall insurance costs.

SR-22 insurance

An SR-22 is a certificate of financial responsibility that some states require drivers to have. It is not a type of insurance, but a form filed with your state's Department of Motor Vehicles (DMV) by your insurance company. The form serves as proof that your auto insurance policy meets the minimum liability coverage mandated by the state.

• DUI or DWI conviction
• Driving without enough insurance
• Too many at-fault accidents or violations
• Repeat offences in a short time frame (e.g. three or more speeding tickets within six months)
• Not paying court-ordered child support
• Hardship license (issued for temporary driving needs, usually to and from work, because your license has been suspended or revoked)

The cost of obtaining an SR-22 varies depending on the insurance company. Some companies file the certification for free, while others charge a fee, typically ranging from $15 to $25. This fee may be charged upfront or added to your premium. In most cases, you will need to carry an SR-22 for three years.

If you need an SR-22 but don't own a car, you can obtain a non-owner SR-22 insurance policy. This type of policy provides liability coverage when you drive a vehicle that you don't own.

Maintaining insurance with a suspended license

Understand the Consequences of a Suspended License

Firstly, it's important to understand the consequences of having a suspended license. A suspended license means your driving privileges have been temporarily withdrawn, and this can be due to various reasons such as driving under the influence (DUI), unpaid traffic tickets, or medical complications. As a result, you will be considered a high-risk driver by insurance companies, and your insurance rates are likely to increase.

Explore Specialized Insurers

Not all insurance companies will insure someone with a suspended license. You may need to explore non-standard or high-risk insurance providers who are willing to offer coverage. Some examples include The General, GEICO, and Bristol West, which offer SR-22 filing and coverage options for high-risk drivers.

Apply for a Hardship or Restricted License

Many insurance companies may be more open to providing coverage if you have a hardship or restricted license. This allows you to drive for specific purposes, such as getting to and from work. The eligibility and requirements for obtaining a hardship or restricted license vary by state, so be sure to check with your state's department of motor vehicles.

Shop Around for the Best Rates

High-risk drivers often face higher insurance premiums, so it's essential to compare quotes from different insurance providers. Shopping around can help you find the most affordable coverage option for your situation.

Obtain an SR-22 or FR-44

Depending on the state requirements and the reason for your license suspension, you may need to obtain an SR-22 or FR-44. These are certificates of financial responsibility that your insurance company files with the state to prove you have the minimum required liability insurance.

Maintain Continuous Coverage

Even if your license is suspended, try to maintain continuous insurance coverage to avoid a gap. Letting your insurance lapse during this period can result in even higher rates when you reinstate your license and obtain new insurance.

Explore Discount Options

Look for potential discounts offered by insurance companies, such as bundling discounts, good grade discounts, or discounts for completing a defensive driving course. These can help offset the higher premiums associated with a suspended license.

Select a Higher Deductible

Choosing a higher deductible can lower your overall insurance costs. Just ensure that you can afford the deductible amount if you need to file a claim.

Remember that maintaining insurance during a license suspension can be challenging and may require some research and effort. Be sure to explore your options and understand the requirements and consequences to make informed decisions.

Reinstating a suspended license

In California, for example, a suspended license will not automatically renew when the suspension period ends. Drivers must apply for reinstatement and pay a reinstatement fee. The reinstatement process will differ depending on the reason for the suspension. For example, if a license was suspended due to a DUI, the driver may need to install an ignition interlock device, enroll in a DUI First Offender Program, and file a Proof of Enrollment Certificate. If the license was suspended due to a physical or mental injury, the driver may need to file a Driver Medical Evaluation.

In addition to completing the suspension period and paying fees, individuals may need to provide proof of insurance (often SR-22 insurance) and proof of completing a required course, such as traffic school or a substance abuse course.

It's important to note that the requirements for reinstating a suspended license vary by state, so it's recommended to check with the relevant Department of Motor Vehicles for specific information.

Frequently asked questions