Get Licensed: Auto Insurance

Getting an auto insurance license can be a challenging process. While it is possible to get car insurance without a license, it is generally more difficult and expensive. Those seeking auto insurance without a license will often need to shop around with smaller, regional insurance companies, as most national insurers do not offer coverage to unlicensed drivers.

There are several reasons why someone without a driver's license might need car insurance. For example, due to age or health problems, you might no longer be able to drive but still own a car that a family member uses to take you to appointments. Alternatively, your license may have been suspended or revoked due to a DUI conviction or too many traffic violations, in which case your state or a court order might require you to obtain SR-22 insurance.

- Shopping around with smaller, regional companies

- Listing yourself as an excluded driver

- Getting parked car insurance if your car won't be driven

- Adding a licensed driver as a co-owner of your vehicle on the registration

List yourself as an excluded driver

Listing yourself as an excluded driver is an option if you need to get car insurance without a license. However, it is a risky option and is not recommended. While you are technically insured, an excluded driver is often not adequately protected in the event of an accident.

If you are the excluded driver on a policy, you cannot legally drive any of the vehicles listed on that policy and you will not be covered by the insurer in the event of an accident. If you cause an accident while driving one of the vehicles, you will be considered an uninsured driver and will be held liable for all damages and injuries.

If you are the policyholder and you list someone else as an excluded driver, your insurance rates will not be affected by their driving record. This can be useful if you have a household member who is a risky driver, as having them on your car insurance policy will cause your rates to skyrocket.

To exclude a driver from your policy, contact your insurance company. You will usually have to fill out and sign an exclusion form. However, not all states or insurance companies allow driver exclusions, so be sure to check with your insurer.

Get parked-car insurance

If you have a car that you don't drive and keep in storage, it's a good idea to get it insured. This is called parked-car insurance or storage coverage. This type of insurance is typically comprehensive-only coverage, which means it doesn't include liability, collision, or uninsured motorist coverage. It covers repair or replacement costs while your car is stored or parked for a minimum amount of time, such as 30 days or more.

• Contact your insurance company and ask if they provide this type of coverage.
• Ensure you have a "fully" insured vehicle. You'll usually need to have a car insured to at least the minimum liability limits in your state before dropping coverage for another car.
• Make sure you own the vehicle. If you're financing or leasing it, you're not technically the owner, and you'll need to keep it insured.
• Cancel your registration if you drop liability coverage. Most states actively track registration requirements, and you risk being fined if you don't cancel your registration.
• Shop around if your insurer doesn't offer parked-car insurance. Many companies provide this low-cost solution, so you should have several options.

It's important to maintain insurance coverage for your parked car to comply with state laws and protect yourself financially in case of theft, damage, or other risks.

Get SR-22 insurance if your license is suspended

If your license has been suspended, you will need to get auto insurance and file an SR-22, also known as a Certificate of Financial Responsibility. This is a document that your insurance company can provide to the state, and it is required for some drivers by court order or by the state. It is not a type of auto insurance, but it does prove that your auto insurance policy meets the minimum liability coverage required by state law.

You will be considered a high-risk driver, so you can expect to pay the insurer an SR-22 filing fee and high car insurance premiums. Shop around for SR-22 car insurance from at least five companies, as auto insurance companies rate risk differently, resulting in dramatic differences in premium quotes. Be honest with your insurance company about the SR-22, as they will discover what you are trying to hide when they pull your driving record.

Most insurers charge a small fee to file an SR-22, typically around $25. Once you have purchased the policy, your car insurance company should file the SR-22 with the state.

It is important to note that if you cancel your auto insurance policy before the mandated SR-22 period concludes (usually three years), your carrier must promptly notify your local DMV, which may result in the suspension or revocation of your driver’s license.

Shop around with smaller, regional companies

When shopping for car insurance, it is recommended to get quotes from at least two or three companies, including smaller, regional companies. This is because smaller insurers, such as Auto-Owners and Erie Insurance, often have higher customer satisfaction ratings and lower rates than the big-name companies.

Comparison tools on specific websites, such as The Zebra and Insurify, allow you to view the auto insurance premiums of different companies to help you find the best rate. Using Insurify, for example, can save you an average of $585 annually. These tools also include the state's minimum car insurance requirements, which is important to know when comparing the costs accurately.

While smaller insurance companies may have more limited coverage areas, higher rates, and less advanced digital tools, they can offer more personalized customer service, cheaper rates due to lower overheads, and more specialized coverages.

When shopping for car insurance, it is also worth considering bundling your auto insurance with your homeowner's or renter's insurance, as this can lead to discounts.

Make someone else the primary driver

Making someone else the primary driver on your auto insurance policy is a straightforward process, but it's important to understand the implications. The primary driver is the person who drives the car the most and is usually the policyholder. However, some insurance companies allow the policyholder to designate someone else as the primary driver. This is often done when the policyholder doesn't have a driver's license or doesn't intend to drive the vehicle regularly.

• Informed Consent: Ensure that the person you want to designate as the primary driver is aware of and agrees to this arrangement. It's important to have their consent before adding them to your policy.
• Driving History: The driving history of the primary driver will impact your insurance premium. If the designated primary driver has a less-than-stellar driving record, it may result in higher rates for your policy. It's essential to review their driving history and consider how it might affect your costs.
• Insurance Requirements: Some states have specific requirements for auto insurance policies, such as listing at least one licensed driver. Make sure to check the regulations in your state to ensure compliance.
• Regular Usage: The primary driver is typically the person who uses the vehicle most frequently. Insurance companies may require proof of regular usage, such as the number of days the vehicle is driven or the mileage accumulated.
• Policy Changes: Adding someone as the primary driver usually requires updating your insurance policy. Contact your insurance provider and provide them with the necessary information, including the primary driver's name, date of birth, driving history, license information, and vehicle identification number (VIN).
• Cost Implications: Adding a primary driver with a history of insurance claims or traffic violations may increase the cost of your policy. On the other hand, insurance companies often offer discounts for teen or student drivers, so be sure to inquire about any applicable discounts.

Remember, it's essential to be transparent with your insurance provider and provide accurate information about the primary driver. Any misrepresentation or omission could lead to issues with coverage in the event of a claim.

Frequently asked questions