Navigating The Auto Insurance Maze: Understanding Options For Undocumented Immigrants

Illegal immigrants can get car insurance, but the process is often challenging and varies depending on location. In the US, undocumented immigrants make up 4.4% of the workforce, but many cannot get a driver's license or insurance. Driving without insurance is risky and can result in fines, imprisonment, and deportation. While some states have strict requirements, 15-19 states and Washington, D.C., allow undocumented immigrants to obtain driver's licenses, which is typically a prerequisite for insurance. These states include California, New York, New Jersey, and Hawaii. Immigrants may also qualify for driver's licenses through the Deferred Action for Childhood Arrivals (DACA) program. To get car insurance, immigrants must research state laws, obtain a driver's license, determine their insurance needs, and request quotes from multiple insurers.

What to do if you can't get a driver's license in your state

If you are an undocumented immigrant, you may not be able to get a driver's license in your state. This will make it difficult to get car insurance, as a valid driver's license is typically required to get coverage. However, there are a few things you can do to try to obtain a driver's license and insurance.

Firstly, check if your state is one of the 15-18 states, along with Washington, D.C., that allow undocumented immigrants to obtain a driver's license. As of January 2023, these states include California, New Jersey, New York, Hawaii, Oregon, Nevada, Utah, Colorado, New Mexico, Washington, Illinois, Virginia, Maryland, Delaware, Connecticut, Vermont, and Washington, D.C. If your state is on this list, you can apply for a driver's license through your local Department of Motor Vehicles (DMV).

If your state is not on the list, 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 the following criteria:

• Arrived in the U.S. before their 16th birthday
• Were born on or after June 16, 1981
• Have lived in the U.S. consistently since June 15, 2007
• 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 honorably discharged veterans
• Do not have a criminal record
• Do not pose a threat to national security or public safety

If you meet these criteria, you can obtain a license through DACA, which will enable you to get car insurance.

If you are not eligible for DACA, you may have to wait until your status as an undocumented immigrant changes before you can obtain a U.S. driver's license. In the meantime, you should avoid driving without a license and insurance, as this can result in fines, imprisonment, and even deportation. Consider alternate forms of transportation until you can secure the necessary documentation.

If you are able to obtain a driver's license, either through your state or the DACA program, you can then shop around for car insurance. Compare rates from multiple insurance companies and look for companies that offer coverage specifically for undocumented immigrants, such as State Farm, Progressive, and Allstate. These companies provide affordable rates, flexible payment options, and multilingual customer support. Remember that car insurance is mandatory in the U.S., so it is essential to obtain coverage before driving.

How to shop for auto insurance

Shopping for auto insurance can be a daunting task, but it can also help you save money. Here are some detailed and direct instructions on how to shop for auto insurance:

Understand Your Coverage Options:

Firstly, it is important to understand the different types of coverage available. A policy with only auto liability coverage will typically be cheaper, but it may not satisfy your needs or the requirements of your lender if you are leasing or financing your car. Comprehensive and collision coverage are often recommended, especially for newer vehicles, to protect you from expensive repair bills. It is also important to consider your state's minimum required coverage and determine the right limit for other coverages like uninsured/underinsured motorist coverage.

Choose Your Deductible:

Your car insurance deductible is the amount you need to pay toward a claim before your coverage kicks in. Typically, you will only have a deductible for comprehensive, collision, and gap insurance coverages. While choosing a higher deductible will result in a lower rate, ensure that it is not so high that you would struggle to pay for repairs before your insurance coverage begins.

Compare Premium Quotes:

The car insurance premium is the bottom line—the exact cost of your insurance per payment cycle. When comparing quotes, ensure that each quote includes the same coverages, limits, and deductible amounts so that you are making an accurate comparison. Remember that cheaper insurance is not always the best option; instead, look for a policy that satisfies all your needs at the best rate.

When to Shop for Insurance:

It is beneficial to shop for car insurance at least once a year, as rates frequently change. Additionally, adding a teenager to your policy is a good time to shop, as some insurers offer discounts for teen drivers.

Gather Necessary Documents:

When shopping for auto insurance, you will need some basic information, including the address, full name, and birthdate of the policyholder. You will also need vehicle information such as VIN numbers, manufacture year, make, model, safety features, and mileage. Furthermore, be prepared to provide driver's license numbers and birthdates for all drivers that will be covered by the policy.

Choose Your Shopping Method:

There are several ways to shop for auto insurance. You can use an insurer's agent, also known as a "captive" agent, who works exclusively for one insurance company. Alternatively, you can use an independent agent who can sell products from multiple companies. You also have the option to purchase a policy directly through an insurer's website or use an online comparison platform to find the best rates.

Compare Insurance Providers and Discounts:

Once you've chosen your shopping method, gather quotes from at least three carriers that interest you. Compare the available discounts offered by each provider, such as those for bundling policies, installing anti-theft devices, having a good credit score, or taking a defensive driving course. Additionally, you can lower your rate by raising your deductible, driving fewer miles, or paying your premium in full upfront.

Purchase Your Policy:

After choosing your insurance provider and policy, it's time to buy! Secure your policy by paying the down payment and setting up a monthly payment plan or paying the premium in full. Don't forget to cancel your old policy, ensuring that the cancellation date is after the start date of your new policy to avoid a lapse in coverage. Your previous insurer should refund any unused portion of your premium.

Remember to shop around and compare quotes from different insurance providers to find the best value for your coverage needs.

Auto insurance costs for undocumented immigrants

Auto insurance is a necessity for all vehicles driven in the U.S. While undocumented immigrants can get auto insurance in some states, many cannot get a driver's license or insurance coverage. This often results in driving without insurance, which can lead to fines, imprisonment, and even deportation.

Getting a Driver's License

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 required to get coverage. As of October 2022, the majority of states make getting a driver's license difficult for undocumented immigrants. However, 18 states and Washington, D.C., allow unauthorized immigrants to obtain driver's licenses. These states include California, New Jersey, New York, Hawaii, Oregon, Nevada, Utah, Colorado, New Mexico, Washington, Illinois, Virginia, Maryland, Delaware, Connecticut, Vermont, and Washington, D.C.

If you don't 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, having lived in the U.S. consistently, and having no criminal record. With a DACA license, you can get a driver's license in any state.

Auto Insurance Costs

The cost of auto insurance for undocumented immigrants varies depending on factors such as age, gender, credit score, and location. On average, the best auto insurance companies for undocumented immigrants, including State Farm, Progressive, and Allstate, offer monthly rates of around $117. State Farm is the most cost-effective option, with coverage starting at $86 per month.

Undocumented immigrants may face above-average car insurance rates, especially if they have had their driver's license for less than three years. Insurance carriers charge higher rates for drivers without a U.S. license for at least three years due to the unknown driving history.

Affording Insurance

Car insurance can be expensive, with full coverage typically costing more than $1,000 per year. However, a policy consisting of just liability coverage is a much cheaper option, often costing less than $50 per month with a clean driving record. It is recommended to shop around and get quotes from multiple companies to find the best rates.

If you cannot afford any insurance plan, some states offer low-cost auto insurance programs for low-income drivers. For example, California and New Jersey have programs that provide basic protection for around $500 per year.

How to get auto insurance for undocumented immigrants

Undocumented immigrants can get auto insurance in the US, although it is not possible in all states. As of October 2022, only 18 states and Washington, D.C., allow unauthorized immigrants to get driver's licenses. These are:

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

The first step to getting auto insurance is to get a driver's license. While some car insurers may write a policy without one, a valid license is typically a requirement to get coverage.

If you live in a state that does not allow you to get a driver's license as an undocumented immigrant, you might be able to get one through the DACA (Deferred Action for Childhood Arrivals) program. This is a federal program that 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.

To qualify for DACA, you must:

• Be under the age of 31 as of June 15, 2012.
• Have immigrated to the US before turning 16.
• Have lived in the US from June 15, 2007, to the present day.
• Have been physically present in the US on June 15, 2012, and at the time of your DACA request.
• Have had no lawful status as of June 15, 2012, either as a legal immigrant or someone whose immigration status had expired.
• Be currently enrolled in school, 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.
• Not have a criminal record.
• 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. If you cannot find a quote that fits your budget, try calling individual companies to see if they can offer you a lower monthly rate.

It is important to note that undocumented immigrants may face above-average car insurance rates due to a lack of driving history.

Auto insurance discounts for undocumented immigrants

Undocumented immigrants can access auto insurance discounts, which is essential for securing affordable coverage. While undocumented immigrants may face challenges when it comes to obtaining auto insurance, many insurance companies offer discounts to assist this demographic. These discounts ensure that everyone, regardless of immigration status, has access to essential protection.

One way to access discounts is by using an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number (SSN). Some companies offer car insurance with an ITIN number, recognising the unique identification challenges faced by undocumented immigrants. This can make it easier for them to obtain coverage at discounted rates.

Additionally, undocumented immigrants can also take advantage of discounts for installing safety features, completing defensive driving courses, or affiliating with certain organisations. These discounts can further lower insurance costs and make coverage more accessible and affordable.

It's important to note that insurance companies may have different eligibility criteria and requirements for discounts, so it's advisable for undocumented immigrants to research and contact insurance providers directly to understand their specific offerings.

Best auto insurance companies for undocumented immigrants

When it comes to finding the best auto insurance companies for undocumented immigrants, State Farm, Progressive, and Allstate are often recommended. These companies offer flexible payment options, multilingual customer support, and accessible claims processes, making them good choices for those who may face challenges due to their immigration status.

State Farm, in particular, stands out for its cost-effectiveness, with coverage starting at $86 per month. Progressive is known for accepting foreign licenses, making it more accessible to undocumented immigrants. Allstate also offers flexible payment plans and comprehensive coverage options.

Other companies worth considering include Erie for its affordable rates and Liberty Mutual for its nationwide coverage.

States that allow undocumented immigrants to obtain driver's licenses

Currently, 15 states and Washington, D.C., allow undocumented immigrants to obtain driver's licenses. These states include California, New Jersey, New York, Hawaii, Oregon, Nevada, Utah, Colorado, New Mexico, Washington, Illinois, Virginia, Maryland, Delaware, Connecticut, Vermont, and Washington, D.C. Obtaining a driver's license is typically the first step towards getting car insurance as an undocumented immigrant.

Frequently asked questions