Auto Insurance: What's The Cost Without A License?

Getting car insurance without a license is possible but challenging. While some insurance companies will decline coverage to someone without a driver's license, others will extend coverage, but it will likely be more expensive. This is because unlicensed drivers are considered high-risk by insurance companies.

Excluding yourself as a driver

While it is possible to exclude yourself as a driver from your car insurance policy, it is generally not recommended. Excluding yourself as a driver means that you will not be covered to drive any vehicles on the policy and will be treated as an uninsured driver if you do so. This can lead to significant financial liability in the event of an accident.

There are a few scenarios where excluding yourself as a driver may be considered. For example, if you are the primary policyholder and there are other licensed drivers in your household who will be the primary drivers of the vehicle, you may choose to exclude yourself. This could be the case if you are no longer able to drive due to age or health reasons but still want to insure the vehicle for other drivers. Alternatively, if you are insuring a car for a minor, you may be able to list yourself as an excluded driver and the teen driver as the primary operator, depending on your state and insurance company.

It's important to note that not all states allow policyholders to exclude themselves or other household members from coverage. Some states require you to list at least one licensed driver on the policy. Additionally, some insurance companies may not offer the option to exclude drivers, so it is essential to check with your insurer.

If you choose to exclude yourself as a driver, you will need to complete a "named driver exclusion" form and understand the specific conditions that will not be covered by your policy. Excluding yourself as a driver may result in lower insurance rates, but it is crucial to carefully consider the risks and ensure you comply with the terms of the exclusion.

Adding a co-owner to your car's registration

While it is possible to get car insurance without a license, it is generally more difficult and more expensive. This is because insurance companies use your driving record to predict the risk you pose and set your insurance rate accordingly. Without a license, insurance companies will see you as a higher risk.

Now, here's the information on adding a co-owner to your car's registration:

• Fill Out a New Title Application: Obtain a Vehicle Registration/Title Application form from your local DMV office or their website. Fill out the form with the new co-owner's information, ensuring all current owners sign the application.
• Submit the Application: Submit the completed application to your state's motor vehicles agency or DMV, along with any required fees.
• Provide Proof of Identity: Both the primary owner and the co-owner will need to provide proof of identity and date of birth when submitting the application.
• Update Insurance: While it is not necessary from an administrative perspective, you may want to add the co-owner to your car insurance policy. Contact your insurance provider to update your policy as needed.
• Receive New Title: Once the application is processed, you will receive a new title certificate displaying the names of all owners.

It's important to note that adding a co-owner to your car's registration means that both owners have equal rights and responsibilities for the vehicle. This includes mutual responsibility for any accidents, damages, or missed payments. Additionally, if one co-owner wishes to sell the car, all co-owners must agree to the sale and sign the title to release their ownership rights.

Buying parked-car coverage

Parked-car insurance, also known as storage coverage, is a way to ensure your vehicle is covered when you plan to park it in a driveway or garage for an extended period. It is a type of insurance that accommodates people who do not drive their cars regularly or have them parked for a long time. This type of insurance is typically comprehensive-only coverage, which means it does not include liability and collision coverages. It covers events such as animal-inflicted damage, flooding and hail damage, and theft or vandalism.

While it is not a legal requirement to have parked-car insurance, it is still a good idea to insure your vehicle. This is because, without insurance, you will be responsible for any damage that occurs to your vehicle while it is parked. For example, if a tree falls on your garage and damages your car, you will have to pay for the repairs yourself. Additionally, if you let your insurance lapse, insurers might see you as a higher risk and increase your rates when you open a new policy.

To get parked-car insurance, you will need to call your insurance company and see if they provide this type of coverage. Most insurance companies will require your vehicle to be in storage for at least 30 days to be eligible. You will also need to own the vehicle outright and have it fully insured before switching to parked-car insurance. In most states, you will need to cancel your registration, as you must have liability coverage if your car is registered.

Some of the best companies for parked-car insurance include State Farm, USAA, and Progressive, which offer affordable rates and discounts for vehicles in storage.

Listing yourself as an excluded driver

To exclude yourself from your car insurance policy, you will need to contact your car insurance company and fill out and sign a driver exclusion form. Not all auto insurance companies allow driver exclusions and some states outlaw it completely. In some states, you may be required to have your own auto insurance before you can be excluded from someone else's policy. It's important to check with your insurer to understand their specific requirements.

If you are the owner of the vehicle, you will need to list the primary drivers who will be covered while operating your vehicle. The primary driver should be the person who usually drives the car, such as a spouse, family member, or roommate. Keep in mind that the policy will be priced based on the driving history of whoever is listed as a driver. If the person you choose as the primary driver has had accidents or tickets, you can expect to pay a higher rate.

Excluding yourself as a driver on your car insurance policy is a way to reduce your insurance costs if you are a high-risk driver or do not plan on driving the vehicle. However, it's important to understand the implications of this decision, as you will not be covered by your insurance if you drive the vehicle.

Getting SR-22 insurance

An SR-22 is a form that is filed with your state to prove that you have car insurance that meets the minimum coverages required by law. It is also known as a "Certificate of Financial Responsibility" or "SR-22 Bond". It is not a type of insurance, but rather a document from your state's department of motor vehicles. An SR-22 is typically required if you've been caught driving without insurance or a valid license. Other reasons you might need to file an SR-22 form include DUI or DWI convictions, driving without enough insurance, too many at-fault accidents or violations, and repeat offences in a short time frame.

If your insurance company offers SR-22 form filings, you can call them and they will take care of it. They 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, then you'll need to buy a new policy. Since many insurance companies don't offer coverage for SR-22s, it's a good idea to let potential insurers know upfront that you require an SR-22.

The SR-22 form can be obtained from your insurance provider and filed with your state to prove you carry your state's minimum required car insurance. Some companies may charge a fee for providing an SR-22 certificate, but others will file it for free as part of your policy.

The requirement to have an SR-22 is usually associated with multiple traffic offences, DUIs, DWIs or other serious moving violations, driver's license suspension or revocation, and violations for failure to maintain mandatory insurance coverage. If you are required to get an SR-22, the traffic court or the Department of Motor Vehicles should notify you by mail.

You will typically need to retain both the SR-22 and your auto insurance policy for approximately three years, although this may vary by state or by circumstance. 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 office, and your license will be suspended until your insurance has been reinstated.

Frequently asked questions