Unlicensed And Underinsured: Exploring The Auto Insurance Conundrum

It is possible to get car insurance without a license, but it can be challenging and more expensive. While it is not a legal requirement to have a driver's license to get insurance, most insurers will not provide coverage to an unlicensed driver. This is because insurers see unlicensed drivers as a risk. If you are an unlicensed driver looking for insurance, you will likely need to shop around for a company that offers auto insurance for unlicensed drivers.

There are several reasons why someone without a driver's license might need car insurance. For example, you might no longer be able to drive due to age or health problems but still own a car that a family member drives to take you to appointments. In this case, you would need to insure the primary driver.

Listing yourself as an excluded driver

There are a few reasons why you might want to exclude yourself from your car insurance policy. One reason could be that you are a risky driver with a history of accidents or violations, which could increase the cost of insurance for other drivers on the policy. By excluding yourself, you may be able to lower the overall insurance rate for the other drivers on the policy. Another reason to exclude yourself could be if you are an unlicensed driver. In this case, listing yourself as an excluded driver may be a way to get car insurance, as some companies will not provide coverage to an unlicensed driver.

However, it is important to note that if you exclude yourself from your car insurance policy, you will not be covered by your insurance in the event of an accident. This means that you could be held personally liable for any damage or injuries caused. Additionally, your policy could be cancelled or not renewed.

To exclude yourself from your car insurance policy, you will need to contact your insurance company and may have to fill out and sign an exclusion form. It is also important to check the rules and regulations in your state, as not all states allow for excluded drivers.

Getting parked-car insurance

Parked-car insurance is a comprehensive-only coverage policy, meaning it covers events such as flooding, hail damage, and animal-inflicted damage. It does not include liability coverage or collision coverage, which protect against damage that occurs while driving. As a result, your car should be parked in a location away from traffic, preferably in a private garage.

To get parked-car insurance, you typically need to call your insurance company and ask about storage coverage. Some requirements for this type of insurance include owning the vehicle outright and having full coverage or at least liability insurance before switching to parked-car insurance. Additionally, you may need to cancel your vehicle registration and keep your vehicle in storage for at least 30 days to be eligible.

Parked-car insurance can offer significant cost savings, with premiums dropping by as much as 80%. It also helps maintain continuous coverage on your car, which can prevent you from being seen as a high-risk customer by insurance companies.

Getting SR-22 insurance if your license is suspended

If your driver's license has been suspended, you may be required to obtain an SR-22 form, also known as a Certificate of Financial Responsibility (COFR). An SR-22 is not a type of insurance but a document that verifies that an individual has vehicle insurance that meets the coverage required by the state for reinstatement of driving privileges.

To get an SR-22, you will need to contact your insurance company, which will add the SR-22 endorsement to your existing policy and then file the SR-22 insurance document with the relevant state authority. If you don't have auto insurance or your current insurer doesn't offer SR-22s, you'll need to buy a new policy. Since many insurance companies don't offer SR-22 filings, it's advisable to inform potential insurers upfront that you require an SR-22.

The requirement to have an SR-22 is usually associated with multiple traffic offenses, DUIs, DWIs, or other serious moving violations. The SR-22 filing fee is typically around $25, but the cost may vary by state and insurance company. In some states, you'll have to pay the filing fee upfront.

In most states, you must retain the SR-22 and your auto insurance policy for approximately three years. To ensure your SR-22 remains in effect, your insurance policy must remain active. If your insurance policy lapses, your insurer is required by law to notify the Department of Motor Vehicles, and your license will be suspended until your insurance has been reinstated.

Once you have met your SR-22 obligations for the prescribed amount of time, your SR-22 status will be removed. At this point, you may be able to start shopping for cheaper car insurance rates, as premiums may decrease once you are three years removed from a major traffic violation.

Adding a licensed driver as a co-owner of your vehicle

Benefits of Adding a Licensed Driver as a Co-Owner:

• Increased chances of obtaining insurance: If you're having difficulty obtaining car insurance due to not having a license, adding a licensed driver as a co-owner can increase your chances of getting insured. This is because vehicle ownership is often a requirement for car insurance.
• Administrative simplicity: In most cases, it doesn't matter administratively if only one of the owners is listed on the car's insurance or registration. This means you can add a co-owner without making significant changes to your insurance policy.
• Shared household use: If you plan to share a car with a family member, adding them as a co-owner can be a convenient way to facilitate this. It's relatively common and typically involves a simple process with state agencies and insurance companies.

Potential Challenges and Considerations:

• Mutual responsibility: One of the main drawbacks of joint ownership is mutual responsibility. Both owners are equally accountable for accidents, damages, and payments. If one owner causes an accident or misses a payment, both will be held responsible.
• Insurance premiums: Joint ownership may result in higher insurance premiums, especially if you own the vehicle with a younger driver. Insurance companies often view unlicensed drivers as riskier, which can lead to increased rates.
• Transfer of ownership: In the event of the death of one co-owner, the ownership typically passes to the surviving co-owner. However, there may be additional steps required, such as processing documents and obtaining a new certificate of title. The specific process can vary depending on the state and the type of joint ownership.
• Removing a co-owner: Removing a co-owner from a car title usually requires the consent of all owners. It involves a similar process to gifting or selling the vehicle, and all owners must agree to any changes in ownership.
• Selling the vehicle: If one co-owner wants to sell the car, all co-owners must agree to the sale. The proceeds from the sale are then divided among the co-owners according to their ownership percentages.
• Non-family members: Some insurance providers may be hesitant to add non-family members, such as coworkers or neighbors, to existing policies. This can be a consideration if you plan to add someone outside your family as a co-owner.

In summary, adding a licensed driver as a co-owner of your vehicle can be a viable option, especially if you're facing challenges obtaining insurance due to not having a license. However, it's important to carefully weigh the benefits against the potential challenges and understand the legal and financial implications of joint ownership.

Getting a state-issued ID card

To get a state-issued ID card, you must be a resident of the state in question. In the case of Virginia, for example, you must be a resident of the state to get a Virginia ID card. You must also not hold a learner's permit or driver's license issued within the United States.

The process for obtaining a state-issued ID card varies depending on the state, so it is important to consult the relevant state agency for specific requirements and regulations. However, some general steps and requirements include:

• Completing an application form: Each state will have its own application form for obtaining a state-issued ID card. This form can usually be completed online or on paper. It is important to use your full legal name on the application, as abbreviations and nicknames are typically not accepted.
• Providing proof of identity: This can include documents such as a birth certificate, passport, or other government-issued identification.
• Providing proof of legal presence: This may include documents such as a birth certificate, passport, or other documentation that establishes your legal presence in the state or country.
• Providing proof of Social Security number: This can be your Social Security card or other documentation that includes your Social Security number.
• Providing proof of state residency: This can include documents such as utility bills, lease agreements, or other official correspondence that includes your name and address. The number of proof of residency documents required may vary depending on the state.
• Paying the required fees: The cost of obtaining a state-issued ID card can vary by state, but it is generally affordable, ranging from around $10 to $50. There may be additional fees for expedited processing or other special circumstances.
• Submitting fingerprints and/or photographs: Some states may require you to submit fingerprints and/or have your photograph taken for the ID card.

It is important to note that the requirements and fees for obtaining a state-issued ID card may differ depending on your age, citizenship status, and other factors. Additionally, the processing time for obtaining a state-issued ID card may vary, so it is recommended to plan ahead and initiate the process well in advance of when you need the ID card.

Frequently asked questions