Auto Insurance Payouts For Undocumented Immigrants: Understanding The Reality

Auto insurance is a necessity for all vehicles driven in the U.S. While some states make it easy for undocumented immigrants to buy auto insurance, several states have regulations banning sales to them. In addition, some companies do not offer auto insurance policies to undocumented immigrants. However, undocumented immigrants can get car insurance in states that allow them to get driver's licenses, as the U.S. requires drivers to have a driver's license to get insured.

Auto insurance for undocumented immigrants in New York

Auto insurance is a necessity for all vehicles driven in the U.S., and undocumented immigrants can get auto insurance in states that allow them to get driver's licenses. In June 2019, New York Governor Andrew Cuomo signed the Green Light Law, which gave over 250,000 undocumented New Yorkers permission to get driver's licenses and auto insurance without discrimination based on their citizenship or legal status in the U.S.

Before the Green Light Law was passed, auto insurance providers would charge higher rates for undocumented immigrants based on their lack of driving history and citizenship. Now, undocumented immigrants in New York can get auto insurance and participate in usage-based insurance or telematics, which tracks safe driving, miles driven, and other behaviours.

To get auto insurance as an undocumented immigrant in New York, you will need a valid driver's license. You can also get a driver's license through the Deferred Action for Childhood Arrivals (DACA) federal program if you meet certain criteria, such as entering the U.S. before the age of 16 and being under the age of 31 as of June 15, 2012.

When shopping for auto insurance, it is important to compare quotes from multiple companies, as rates can vary widely. You may also want to consider insurance companies that cater specifically to undocumented immigrants, such as State Farm, Progressive, and Allstate, which offer affordable rates and flexible payment options. Additionally, you can look into state-specific insurance programs that offer more affordable options for undocumented immigrants.

Auto insurance for undocumented immigrants in California

Auto insurance is a necessity for all vehicles driven in the US. While some states make it easy for undocumented immigrants to buy auto insurance, several states have regulations banning sales to them.

California is one of the 15 states that allow undocumented immigrants to get car insurance. In June 2019, Governor Andrew Cuomo signed the Green Light Law, which gave over 250,000 undocumented Californians permission to get driver's licenses and auto insurance without discrimination based on their citizenship/legal status in the US.

How to Get Auto Insurance as an Undocumented Immigrant

The first step toward getting car insurance as an undocumented immigrant is usually to apply for a driver's license. While some car insurers may write a policy without one, a valid license is typically a requirement to get coverage. As of October 2022, the majority of states still make getting a driver's license extremely difficult for undocumented immigrants. However, 18 states and Washington, D.C., allow unauthorized immigrants to get driver's licenses.

If your state doesn't allow you to get a driver's license as an undocumented immigrant, you might have luck if you're part of the Deferred Action for Childhood Arrivals (DACA) program. Generally, the program is open to immigrants who:

• Arrived in the US before their 16th birthday
• Were born on or after June 16, 1981
• Have lived in the US consistently
• Had no lawful immigration status on June 15, 2012, or at the time the DACA request was filed
• Completed at least a GED or high school, are currently enrolled in school, or are an honorably discharged veteran
• Don't have a criminal record

Shopping for Car Insurance

Car insurance can be expensive—usually more than $1,000 a year for full coverage, and even more if you're younger than 30. But most importantly, you need enough coverage to satisfy the law. Each state has a minimum amount of insurance each driver needs to carry. For example, New Jersey requires drivers to have $25,000 of bodily injury liability coverage per person, $50,000 of bodily injury liability coverage per accident, and $25,000 of property damage liability per accident.

A policy consisting of just liability coverage is the cheapest option, often costing less than $50 per month with a clean driving record. However, that doesn't mean you should settle for any insurer. You should shop around for the best car insurance in your area and get a quote from at least three companies. Policy premiums can differ by possibly hundreds of dollars, so it's important to be sure you're getting the best deal.

Affordable Insurance Plans

If you can't afford any insurance plan, most states offer programs geared toward low-income drivers. For example, California offers a low-cost auto insurance program for drivers with an annual income under $33,975 for one person or $69,375 for a household of four. Costs are usually no more than $500 a year and provide basic protection. New Jersey has a similar program.

Risks of Driving Without Insurance

You should never take the risk of driving uninsured, especially as an undocumented immigrant. If you are caught driving uninsured, it can cost you thousands of dollars in fines, and you can be charged with a crime. If you are an undocumented immigrant and are charged with a crime, it may be reported to Immigration and Customs Enforcement (ICE) and you may face deportation. Therefore, it is best to find alternate transportation until you can secure car insurance.

Auto insurance for undocumented immigrants in New Jersey

Auto insurance for undocumented immigrants in the US can be challenging to obtain, and the process varies from state to state. In most states, a driver's license is required to purchase auto insurance, and in many states, undocumented immigrants cannot obtain a driver's license. However, some states allow undocumented immigrants to obtain a driver's license, making it possible for them to acquire auto insurance.

New Jersey is one of the states that shoulders the bulk of illegal immigrants, and it can be challenging for undocumented immigrants in this state to obtain auto insurance. Most auto insurance companies in the US require a driver's license for purchasing auto coverage, and as it is difficult for undocumented immigrants to obtain a driver's license in New Jersey, this can be a significant barrier.

However, there are a few options available for undocumented immigrants in New Jersey who need auto insurance. Firstly, some insurance companies may accept a foreign driver's license, making it possible for undocumented immigrants to purchase auto insurance. Additionally, some states allow individuals to obtain a driver's license without US citizenship, and there may be similar options in New Jersey. It is recommended to check with the local Department of Motor Vehicles (DMV) to understand the specific requirements and options available.

Furthermore, some insurance companies demonstrate a commitment to providing coverage regardless of immigration status. For example, State Farm, Progressive, and Allstate have been known to provide auto insurance to undocumented immigrants. These companies offer flexible payment options, multilingual customer support, and accessible claims processes, making them good options for undocumented immigrants seeking auto insurance.

When purchasing auto insurance as an undocumented immigrant in New Jersey, it is essential to compare quotes from multiple insurance companies to find the best rates and coverage options. It may also be helpful to speak with an insurance professional about your specific situation to ensure you find the right type of coverage.

Auto insurance for undocumented immigrants with foreign licenses

Auto insurance is a necessity for all vehicles driven in the U.S. While some states make it easy for undocumented immigrants to buy auto insurance, several states have regulations banning sales to them.

Getting a Driver's License as an Undocumented Immigrant

The first step towards getting auto insurance as an undocumented immigrant is to obtain a driver's license. As of October 2022, the majority of states make getting a driver's license difficult for undocumented immigrants. However, there are currently 16 states and Washington, D.C., that allow immigrants to obtain a driver's license without U.S. citizenship:

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

If you do not live in one of these states, you may still be able to obtain a driver's license through the Deferred Action for Childhood Arrivals (DACA) program. This program is open to immigrants who meet specific criteria, such as arriving in the U.S. before their 16th birthday and having no lawful immigration status as of a specified date.

Auto Insurance Options for Undocumented Immigrants

Once you have obtained a driver's license, you can shop for auto insurance. Some insurance companies offer coverage to undocumented immigrants and may require certain documentation, such as an Individual Taxpayer Identification Number (ITIN) or a foreign passport, instead of a Social Security Number. It is important to note that insurance rates for newly licensed drivers tend to be higher due to a lack of U.S. driving history.

When shopping for auto insurance as an undocumented immigrant, it is recommended to get quotes from multiple companies and compare rates. Some of the insurance companies that cater to undocumented immigrants include:

• State Farm
• Progressive
• Allstate
• Erie
• Liberty Mutual
• Nationwide
• Farmers
• Travelers
• American Family
• AAA

These companies offer various coverage options, flexible payment plans, and multilingual customer support, making them more accessible to undocumented immigrants.

Factors Affecting Auto Insurance Rates for Undocumented Immigrants

Several factors can affect auto insurance rates for undocumented immigrants, including age, gender, location, marital status, vehicle type, and driving history. Additionally, the lack of a U.S. credit history and previous insurance history can result in higher insurance rates. It is important to shop around and compare quotes to find the most affordable coverage options.

Auto insurance for undocumented immigrants with DACA status

Auto insurance is a necessity for all vehicles driven in the US, and undocumented immigrants can get auto insurance in states that allow them to get driver's licenses. As of October 2022, 18 states and Washington, D.C., allow unauthorized immigrants to get driver's licenses. These states include California, New York, New Jersey, Hawaii, Oregon, Nevada, Utah, Colorado, New Mexico, Washington, Illinois, Virginia, Maryland, Delaware, Connecticut, Vermont, and the District of Columbia.

If you can't get a driver's license in your state, you may be able to get one through the Deferred Action for Childhood Arrivals (DACA) program. This program allows people who meet certain criteria to get a Social Security number and employment authorization documents, enabling them to get driver's licenses in every state except Arizona and Nebraska. The criteria for DACA are as follows:

• You must be under the age of 31 as of June 15, 2012.
• You must have immigrated to the US before you turned 16.
• You must have lived in the US from June 15, 2007, to the present day.
• You must be in the US at the time of your request for deferred action.
• You must not have had lawful status as of June 15, 2012, either as a legal immigrant or someone whose immigration status had expired.
• You must be in school currently, have graduated or received a certificate of completion for high school, have a GED, or have been honorably discharged from the Armed Forces or Coast Guard.
• You must not have been convicted of a felony, a significant misdemeanor, or three or more misdemeanors.
• You must not pose a threat to national security or public safety.

Once you have a driver's license, you can shop around online to find and compare quotes from different insurance companies. It is recommended to get quotes from at least three companies, as policy premiums can differ by possibly hundreds of dollars. Some of the best auto insurance companies for undocumented immigrants are State Farm, Progressive, and Allstate. On average, the monthly rate for these companies is $117, with State Farm offering the most affordable coverage at $86 per month.

If you cannot afford any insurance plan, some states offer programs to help low-income residents obtain auto insurance. For example, California offers a Low-Cost Auto Insurance Program for drivers with an annual income under $33,975 for one person or $69,375 for a household of four. New Jersey has a similar program.

Frequently asked questions