Suspended License And Auto Insurance: What's The Deal?

It is possible to get car insurance with a suspended license, but it can be challenging. A suspended license usually results in higher insurance premiums due to the perception of increased risk by insurers. Some insurers may not offer coverage, especially if your driving history indicates a tendency for risky behaviour or a high number of accidents. You may also need to file an SR-22 or FR-44 form to meet state requirements.

Reasons for a suspended license

A driver's license suspension means that your driving privileges are taken away for a defined period of time. The reasons for a license suspension vary by state, but they can generally be divided into driving-related and finance-related suspensions.

Driving-related license suspensions

Driving-related suspensions occur when you violate road laws. Examples of this include:

• Driving without insurance: In almost all states, drivers are required to carry a minimum amount of liability insurance to drive legally. Driving without insurance is therefore a common reason for license suspension.
• Driving under the influence (DUI): Driving while under the influence of drugs or alcohol is considered a serious offense and can result in license suspension. The specific language and definitions surrounding this offense vary by state.
• Reckless driving: This includes behaviors such as excessive speeding, racing, and passing a vehicle when there is oncoming traffic.
• Refusal to take a breathalyzer test: In some states, such as New Jersey, refusing to take a breathalyzer test after being arrested for a DUI carries penalties similar to those for a DUI conviction, including license suspension.
• Failing a drug or alcohol test: Testing positive for drugs or alcohol while driving can result in license suspension, even if there are no other signs of impaired driving.
• Hit-and-run accidents: Leaving the scene of an accident is a serious offense and can lead to license suspension.
• Accumulation of traffic violations: Receiving multiple traffic tickets or accumulating too many points on your license within a specific time period can result in license suspension.

Finance-related license suspensions

Finance-related suspensions occur when individuals fail to meet their financial obligations. Examples include:

• Failure to pay traffic tickets, parking tickets, or toll road violations.
• Failure to pay financial obligations from an accident, such as property damage or injury claims.
• Failure to pay child support: In some states, delinquent or skipped child support payments can result in license suspension.
• Failure to pay student loans: In states like Iowa, Montana, and Oklahoma, failing to repay student loans can lead to license suspension.

Other reasons for license suspension

There are also several other reasons why an individual may have their license suspended, including:

• Medical complications: In some cases, a license may be suspended due to physical or mental health conditions that impair an individual's ability to drive safely, such as epilepsy or cognitive decline.
• Illegal use of a license: Using a license for illegal purposes, such as purchasing alcohol while underage, can result in suspension.
• Failure to appear in court: In some states, failing to appear in court, even for a non-driving-related matter, can lead to license suspension.
• Missing school: Some states have laws that allow for the suspension of learner's permits and driver's licenses for students with poor attendance.

Consequences of a suspended license

A suspended license is a temporary hold that prohibits you from legally driving. The consequences of a suspended license can vary depending on the state and the reason for the suspension. Here are some common consequences of a suspended license:

• Higher insurance premiums: A suspended license is often viewed by insurers as an indicator of high-risk driving behaviour, which can lead to increased insurance rates.
• SR-22 or FR-44 requirements: In many states, drivers with a suspended license may need to file an SR-22 or FR-44 form, which certifies that they carry the required minimum amount of liability insurance.
• Restricted driving privileges: Some states may allow limited driving privileges during a suspension, such as driving to work, school, or medical appointments.
• Reinstatement fees: To reinstate a suspended license, individuals typically need to pay a fee, which can vary depending on the state and the reason for the suspension.
• Difficulty in obtaining insurance: Some insurance companies may not offer coverage to drivers with a suspended license, especially if their driving record indicates risky behaviour or a history of accidents.
• Impact on employment and daily life: A suspended license can affect an individual's ability to commute to work or perform other daily tasks, such as picking up children from school.
• Legal consequences: Driving with a suspended license can result in misdemeanor charges, fines, jail time, or vehicle impoundment.

Getting insurance with a suspended license

A suspended license can make the process of getting car insurance more difficult, but it is not impossible. A suspended license will likely result in higher insurance premiums, and you may need to file an SR-22 or FR-44 form to meet state requirements. Here are some steps to help you get insurance with a suspended license:

Explore Specialized Insurers

Not all insurance companies will insure someone with a suspended license. You may need to pursue coverage with a non-standard or high-risk auto insurance carrier. Some companies that offer high-risk insurance include:

• The General
• GEICO
• Bristol West
• Progressive
• Travelers
• MetLife
• Nationwide
• Allstate
• Acceptance

Compare Quotes

Compare quotes from different insurance providers to find the best rate for your circumstances. Each company assesses driver risk differently, so you may find variations in the premiums offered.

Consider Non-Owner or High-Deductible Policies

If you don't own a car, you may need a non-owner car insurance policy, which provides liability coverage when driving a car you don't own. You can also consider selecting a higher deductible to lower your overall insurance costs, but make sure you can afford the deductible if you need to file a claim.

Maintain Continuous Coverage

Avoid letting your insurance lapse, even during your license suspension. Some companies charge higher rates to insure drivers with gaps in their coverage. Maintaining continuous coverage can help you avoid higher rates when you get your license reinstated.

Apply for a Hardship or Restricted License

Many insurance companies won't insure someone with a suspended license, but they may be more open to providing coverage if you have a hardship or restricted license. A restricted license allows you to drive only for specific tasks, such as getting to and from work or school. Check with your state's department of motor vehicles to find out if you're eligible to apply for this type of license.

Obtain an SR-22 or FR-44

You may be required to have your insurer file an SR-22 or FR-44 form, which is a certificate of financial responsibility. This form proves that you carry the required minimum amount of liability insurance as mandated by your state. An SR-22 is typically needed for drivers convicted of serious traffic offenses, such as DUI or reckless driving. An FR-44, which is required in some states like Florida and Virginia, indicates that you have liability insurance that exceeds the state's minimum requirements.

SR-22 insurance

An SR-22 is a certificate of financial responsibility that is sometimes required by a state or court order. It is not an actual "type" of insurance but a form filed with your state to prove that your auto insurance policy meets the minimum liability coverage required by state law. It is a document that an insurance company can provide to the state that requires it and is a type of proof of insurance.

SR-22s are typically required if you've been caught driving without insurance or a valid license. You may also need to file an SR-22 form if:

• You have a DUI or DWI conviction
• You have too many at-fault accidents or violations
• You have repeat offences in a short time frame (e.g. three or more speeding tickets within six months)
• You have failed to pay court-ordered child support
• You have a hardship license (issued for temporary driving needs, normally 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 file the certification for free, while others charge a fee that typically ranges from $15 to $25. 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.

In most cases, you'll need to carry an SR-22 for three years. It is your responsibility to alert your insurance company when it comes time to remove the SR-22 endorsement from your policy. If your policy is cancelled or lapses while you're carrying an SR-22, your insurance company will alert the DMV and your license will be suspended.

Maintaining insurance after a suspended license

Understand the impact of a suspended license on insurance:

A suspended license will likely result in higher insurance premiums as insurance companies will consider you a high-risk driver. This is due to the perceived increased risk associated with drivers who have had their licenses suspended. You may also be required to file an SR-22 or FR-44 form, depending on your state, to meet the minimum liability insurance requirements.

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. These companies typically have more flexible underwriting guidelines and can provide coverage for drivers with a history of violations or accidents.

Compare quotes and consider different policy options:

Shop around and compare quotes from multiple insurance providers to find the best rate. Consider non-owner or high-deductible policies, which can help reduce your overall insurance costs. You can also explore different coverage options, such as comprehensive-only coverage, to lower your premium.

Maintain continuous coverage:

Avoid letting your insurance lapse, even during your license suspension. A gap in coverage can lead to higher rates when you reinstate your license and obtain new insurance. Maintaining continuous coverage demonstrates a commitment to insurance responsibility, which is favourable to insurance companies.

Seek a restricted or hardship license:

Apply for a restricted or hardship license, which will allow you to drive for specific purposes, such as work or medical appointments. This can make it easier to obtain insurance, as you will still be considered a licensed driver. However, obtaining this type of license varies by state, so be sure to check with your state's department of motor vehicles.

Take advantage of discounts:

Look for insurance discounts to help lower your premiums. These can include bundling discounts, good grades, or membership in certain organizations. Additionally, consider taking a driver safety course, which can also help reduce your insurance costs.

Frequently asked questions