Auto Insurance And Suspended Licenses: What You Need To Know

If your friend has a suspended license, it is still possible to get car insurance, but it may be more difficult and expensive. Your friend will be seen as a high-risk driver, and their options will be limited to insurers that cater to this demographic. They will also need to show that their license suspension is for a short period, and once their driving privileges are restored, they must provide proof of reinstatement to the insurer. If the suspension is long-term, your friend can be added to an existing policy as the primary driver, but they will not be listed on the policy until their license is reinstated.

Getting car insurance with a suspended license

A suspended license can create complications for car insurance, but it is still possible to get insured. However, the process may be more difficult and expensive. The difficulty in obtaining car insurance with a suspended license depends on the reason for the suspension and the need to file an SR-22.

Difficulty in obtaining car insurance with a suspended license

Insurers generally won't offer coverage if you are not legally able to drive or if you drive illegally while your license is suspended. Most car insurance companies require an insured driver to be licensed. If your license has been suspended due to reckless driving, receiving multiple traffic tickets in a short amount of time, failure to show proof of insurance, driving without insurance, or getting a DUI, you may find it challenging to obtain car insurance.

Increased insurance premiums

A suspended license usually results in higher insurance premiums due to the perception of increased risk by insurers. You will likely be classified as a high-risk driver, resulting in very high premiums. Additionally, you may need to file an SR-22 or FR-44 to meet state requirements, which can further increase costs.

Explore specialized insurers and compare quotes

Not all insurance companies will insure someone with a suspended license, so you may need to explore non-standard or high-risk insurance providers. Comparing quotes from different providers can help you find the best rates.

Maintain continuous coverage

It is generally recommended to maintain continuous coverage even during your license suspension. A gap in coverage is often associated with higher-risk drivers and can lead to increased rates when you get your license reinstated.

Other considerations

If you need to drive due to hardship, you may be eligible for a restricted or conditional license, which will reinstate your driving privileges under specific conditions. Additionally, obtaining an SR-22 or FR-44 insurance policy may be required to get car insurance coverage and reinstate your driving privileges. These forms are filed by your insurer with the state to certify that you have the required auto insurance coverage.

In summary, while it is possible to obtain car insurance with a suspended license, it may be challenging and expensive. Exploring specialized insurers, comparing quotes, and maintaining continuous coverage can help you navigate this difficult time and find the best insurance options for your situation.

SR-22 or FR-44 forms

SR-22 and FR-44 forms are both types of financial responsibility filings that some states require for individuals convicted of certain driving offences. An SR-22 is a certificate of financial responsibility that is attached to an auto policy. It is not an actual "type" of insurance but a form filed with your state. This form serves as proof that your auto insurance policy meets the minimum liability coverage required by state law. Your insurance company will notify your state's DMV that you are insured. The SR-22 form is commonly required in many states for drivers who have been convicted of offences such as DUI, driving without insurance, or multiple traffic violations.

The FR-44 form, on the other hand, is required only in Florida and Virginia. Like the SR-22, it's a form filed by the driver's insurance company to prove financial responsibility, but the key difference lies in the minimum liability coverage amounts. FR-44 typically requires higher liability limits than SR-22, making it a more stringent requirement. The FR-44 is generally mandated for individuals convicted of more serious offences, such as DUIs with higher blood alcohol concentrations or repeat offences.

If you need an SR-22 or FR-44, the courts or your state Motor Vehicle Department will notify you. If you are required to obtain an SR-22 and already have auto insurance, start by calling your insurer and asking if they will file the form on your behalf. Not all insurance companies offer SR-22 filing, so if your current carrier does not, you’ll have to switch car insurance to find a company that does. If you don’t currently have car insurance, you’ll need to get a policy in order to obtain an SR-22.

Maintaining insurance coverage

• Insurers don't like gaps in coverage: Insurance companies consider a lapse in car insurance coverage to be a red flag because it is often associated with higher-risk drivers. So your rate could go up if you have a gap in coverage.
• You may be eligible for a restricted or hardship license: This allows you to legally drive to specific locations, such as work, school, or medical appointments. You must apply for a hardship license with the state, and they'll decide based on your circumstances. If you're granted a restricted license, you'll need car insurance to drive.
• You need insurance to get your license reinstated: Before your license can be reinstated, you'll often have to complete certain steps like paying outstanding fines, completing a defensive driving course, and providing proof of car insurance. Your insurance company may also need to file an SR-22.
• Your loan or lease company requires it: If you have a loan or lease on your vehicle, you'll likely be required to carry insurance to protect their investment. Even if you're not driving your car, it could still be damaged. Your vehicle could be involved in a hit-and-run while parked or it could be stolen, vandalized, or destroyed in a fire while sitting in your driveway. If you're not carrying auto insurance while your license is suspended, you'll be responsible for all repairs or replacement of the vehicle.
• To prevent a gap in coverage: If you let your coverage lapse, you're likely to face higher rates when you get your license reinstated and obtain new insurance than if you had maintained your policy throughout your suspension period.
• To avoid fines and penalties: In some states, you may face penalties or fines if your car has a valid license plate but you're uninsured. For example, in Maryland, you can be fined $150 for the first 30 days and $7 per day after that if your vehicle is tagged but uninsured – even if the car isn't being driven.
• To satisfy your loan or lease agreement: If you've financed or leased your vehicle, you may be contractually obligated to carry insurance regardless of your driver's license status. Otherwise, you may have to pay for force-placed insurance.

If you're concerned about the cost of maintaining insurance coverage while your license is suspended, there are a few things you can do to keep costs down:

• Shop around: Compare quotes from different car insurance providers. Each company assesses driver risk differently, so you may be able to find a better rate by shopping around.
• Consider non-owner car insurance: If you don't own a car, you may still need insurance to reinstate your license. Some companies offer non-owner car insurance, which gives you liability coverage when driving a car you don't own.
• Maintain continuous coverage: Avoid letting your insurance lapse, even while your license is suspended. Some companies charge higher rates to insure drivers with a gap in coverage.
• Select a higher deductible: Choosing a higher deductible can lower your overall insurance cost, but make sure you can afford the deductible if you need to file a claim.
• Look for discounts: Taking a driver safety course can help lower premiums. Also, look for discounts based on bundled insurance, good grades, or membership in certain organizations.

Applying for a hardship or restricted license

A hardship or restricted license allows a person with a suspended license to drive to and from specific places, such as work or school. The purpose of a hardship license is to allow people to avoid losing their jobs and to meet other important obligations that require driving.

The process for obtaining a restricted license varies by state, but here are some general steps and requirements:

• Most states require drivers to submit an application through the DMV.
• The driver might need to attend a hearing where a judge or DMV official determines whether to issue a hardship license.
• Motorists often have to prove to the court or DMV that they need to drive for specific reasons, such as getting to work or school, attending drug or alcohol treatment, or obtaining medical care.
• The driver may need to provide supporting documentation, such as a class schedule, a doctor's note, or proof of employment.
• Some states require a fee to be paid for the hardship license application.
• In some states, drivers with DUI-related suspensions may need to install an ignition interlock device (IID) in their vehicle prior to obtaining a hardship license.
• The judge or DMV official will consider the motorist's arguments and evidence and will approve or deny the application.
• If approved, the court or DMV will determine the restrictions that will be placed on the hardship license, such as specific routes or driving times.

Eligibility for a Hardship or Restricted License

Eligibility for a hardship or restricted license generally depends on the following factors:

• The reason for the license suspension
• The motorist's driving record
• The type of license the driver had prior to the suspension
• Whether this is the driver's first suspension

It's important to note that commercial drivers are typically not eligible for hardship licenses, and drivers with DUI-related suspensions may need to complete a "`hard suspension` period" without any driving before obtaining a hardship license.

High-risk insurance companies

If you have a suspended license, you will be considered a high-risk driver by insurance companies. This means that you will likely face higher premiums and may have trouble finding coverage at all. However, there are some high-risk insurance companies that you can consider:

• The General: This carrier is available in all 50 states and offers SR-22 filing.
• Geico: This company earned the 2024 Bankrate Award for Best Auto Insurance Company for High-Risk Drivers.
• Bristol West: Offers coverage options for high-risk drivers, including SR-22 and FR-44 filing.
• State Farm: The nation's largest insurer offers low average rates for high-risk drivers and has a wealth of discounts, including its Drive Safe and Save program.
• USAA: For eligible military members, veterans, and their spouses and children, USAA is likely one of the cheapest options and has some of the highest customer satisfaction ratings.
• Nationwide: Nationwide has some of the cheapest average rates for drivers with severe speeding tickets and offers a telematics program that rewards drivers for safe driving.
• Progressive: Progressive was one of the first companies to specialize in insuring high-risk drivers and offers competitive rates for drivers with DUIs and severe speeding tickets.
• Travelers: While Travelers doesn't offer the absolute lowest average rates for high-risk drivers, the company has some of the most affordable pricing for this group, with discounts for students and its Travelers Intellidrive program.

It's important to note that the best high-risk insurance company for you will depend on your specific situation, including your age, driving record, and location. It's recommended to compare quotes from multiple providers to find the most affordable coverage.

Frequently asked questions