Unlicensed Vehicles: Need Insurance?

It is possible to insure an unlicensed vehicle, but it's not a simple process. While a driver's license is not required to get insurance, most insurers will not provide coverage to an unlicensed driver. This is because insurance companies view unlicensed drivers as high-risk. However, some smaller and more localized insurance companies may be able to provide coverage to unlicensed drivers, depending on the circumstances. For example, if you have a health condition that prevents you from driving, you may still want to maintain auto insurance to protect your financial investment in your vehicle. Additionally, if you are insuring a car for a minor or a student driver, you will need to purchase a policy that covers them. In any case, it's important to work with an agent who understands your specific situation and can help you find the coverage you need.

You can insure an unlicensed vehicle if it's vintage or a collector's item

It is possible to get car insurance without a license. However, some companies may be wary of insuring customers without a license, and some states require at least one licensed driver on the policy. If you own a vintage car or a collector's item, you can get classic car insurance to protect it from damages and theft.

Classic car insurance offers some key benefits compared to regular insurance. For example, premiums are often lower because insurers understand that classic cars are usually driven with great caution. Classic car insurance also offers flexible usage, meaning there are no mileage or usage restrictions.

If you are looking to insure a classic car, Hagerty is one company that offers classic and collector car insurance. They offer benefits such as guaranteed value coverage for your classic car, expert claims handling, and unparalleled service and knowledge.

When insuring a classic car, it is important to understand the different types of coverage. An agreed value policy guarantees that you will receive the full insured amount of the vehicle in the event of a total loss. In contrast, a stated value policy gives the insurer the right to pay either the vehicle's depreciated cash value or the cost to replace it, choosing the lower amount.

In addition to classic car insurance, you may also want to consider separate collectibles insurance for any valuable items you keep in your car. While some homeowners insurance policies provide limited coverage for collectibles, it is generally wise to arrange for separate coverage if your collection is valuable. This type of insurance will protect your collectibles from a wide range of losses, such as fire, theft, and breakage.

You can insure an unlicensed vehicle if it's in storage

Comprehensive coverage can protect your vehicle from theft, weather events, and more while it's in storage. This is the closest thing to vehicle storage insurance. Comprehensive coverage will protect your vehicle against the types of damage it could suffer while parked on your property. For example, if a tree falls on your car during a storm, comprehensive coverage will protect you. It also covers theft, vandalism, and damage from wind, hail, hurricanes, and fire.

Some insurers allow you to keep comprehensive coverage while dropping collision car insurance coverage. However, if you have a car loan or lease, your lienholder will likely require you to keep comprehensive and collision coverage at all times, even when the vehicle is not being driven.

Parked-car coverage, also known as stored-car insurance, only provides comprehensive insurance. This type of insurance covers damage to a car while it's in storage and isn't being driven. It will cover damage from rodents or wild animals, and it is cheaper than typical auto insurance policies that include liability coverage.

If you do decide to insure your unlicensed vehicle, you will need to list a licensed driver as the primary driver on the policy. This should be the person who usually drives the car, such as a spouse, family member, or roommate. It is illegal to drive without a license, even if the vehicle is insured.

You can insure an unlicensed vehicle if you're a new driver

Yes, you can insure an unlicensed vehicle even if you're a new driver. However, it may be challenging to find the right policy, as some companies are hesitant to insure unlicensed drivers. Here are some options to consider:

Listing Yourself as an Excluded Driver

You can purchase a policy and list yourself as an excluded driver, which means you are not allowed to drive the insured vehicle and are not covered by the policy. This option reduces the risk for the insurance company, but keep in mind that if you're pulled over or in an accident, you'll be treated as uninsured, resulting in fines and vehicle impoundment. You will also have to pay for any damage out of pocket.

Getting Parked-Car Insurance

If your unlicensed vehicle will be kept in storage and not driven, you can opt for parked-car insurance or stored-car insurance. This type of policy provides comprehensive coverage for damage to your vehicle while in storage, such as damage from rodents or wild animals. However, it does not include liability coverage, so you cannot legally drive the vehicle. This option is typically cheaper than standard auto insurance policies.

Listing a Licensed Driver as the Primary Driver

If you plan to drive the unlicensed vehicle, you can list a licensed driver, such as a spouse, family member, or roommate, as the primary driver on the policy. This person should be the one who typically drives the car. Some insurance companies allow the person buying the policy to designate someone else as the primary driver, but others may require shopping around to find a company that offers this option.

Changing Your Vehicle's Registration

If you're unable to find an insurer due to not having a license, consider adding a licensed driver as a co-owner of your vehicle on the registration. This can increase the chances of getting your vehicle insured, as vehicle ownership is a common requirement for insurance. Changing the registration typically involves visiting your local DMV, filing a form, and paying a fee.

Contacting Small Companies or Independent Agents

You may have better luck finding insurance by contacting small or regional companies or local independent agents. They may be more familiar with insurers that provide policies to unlicensed drivers. You may need to call insurers directly, as online purchases usually require a valid license number.

You can insure an unlicensed vehicle if you're insuring a minor

It is possible to insure an unlicensed vehicle, and in some cases, it may be necessary. If you are insuring a minor, there are a few things you should know. Firstly, minors cannot enter into legally binding contracts, so a parent or guardian will need to purchase the insurance policy on their behalf. This is typically done by adding the minor to an existing policy or purchasing a new policy that includes the minor. It is important to note that adding a minor to your insurance policy will likely result in higher costs. Insurance companies view teen drivers as high-risk due to their inexperience, which can lead to increased rates.

When insuring a minor, it is essential to ensure they are adequately covered. In most states, all drivers must be insured when they are behind the wheel. Before your teen starts driving, even with a learner's permit, it is crucial to reach out to your insurer to ensure they are covered under your policy. Some insurance companies will allow parents to list a teen with a learner's permit on their policy at no additional charge until they become a fully licensed driver. However, other companies may require you to add the teen and start paying premiums once they receive their permit. Therefore, it is important to contact your insurance provider to understand their specific guidelines.

Additionally, there are ways to help reduce the cost of insuring a minor. Many insurance companies offer various discounts for teen drivers, such as good student discounts, good driver discounts, and low-mileage discounts. It is worth exploring these options and comparing quotes from different insurance providers to find the best rates and ensure your teen is adequately covered.

You can insure an unlicensed vehicle if your license has been suspended

It is possible to insure an unlicensed vehicle even if your license has been suspended. However, most insurers will require you to list at least one licensed driver on the policy.

If your license has been suspended, you may need to file an SR-22 form or the equivalent in your state. An SR-22 certificate is proof that you've satisfied the minimum insurance requirements in your state. Working with a carrier that offers SR-22 certificates may allow you to obtain insurance even with a suspended license.

If you won't be driving your vehicle at all, you can get parked-car insurance. This type of insurance covers damage to your car while it's in storage and isn't being driven. However, you won't be covered for damage if you do drive your car.

If you own a vintage or classic car, you may want to get classic car insurance to protect it from damages and theft. In this case, you may not need collision coverage or medical payments coverage, but you can insure your car against theft or vandalism.

If your license is suspended, you may be considered a high-risk driver, and your insurance rates may increase. Additionally, if you're pulled over or in an accident while driving without a license, you'll be treated as if you were driving without insurance, which could result in fines and vehicle impoundment. You'll also have to pay for any damage out of pocket.

To get car insurance with a suspended license, you may need to shop around to find a company that offers insurance for unlicensed drivers. You can get quotes from small and regional companies or contact a local independent agent familiar with insurers that provide policies to unlicensed drivers.

Frequently asked questions