Insurance Revoked: Does Dmv Know?

If your car insurance is revoked, the motor vehicle department will be notified. Insurance companies have access to the same data as the DMV, and they regularly access DMV records to determine whether a policyholder's driver's license is suspended or revoked. This allows insurers to accurately assess their risk. If an insurance company discovers a suspension or revocation, it may affect your policy, potentially leading to an adjustment in your premium or even cancellation of your coverage. Therefore, it is crucial for policyholders to notify their insurer if their driving status changes to maintain transparency and avoid complications.

If insurance is revoked, your license will be too

If your license is revoked, it is considered permanently cancelled. This means that you will no longer be able to drive legally.

Having a revoked license will also affect your auto insurance policy. Your insurance company may cancel your policy or increase your premiums significantly. This is because you are now considered a high-risk driver. If your policy is cancelled, it may be challenging to secure a new one due to your high-risk status.

In some cases, you may still be able to keep your auto insurance policy even with a revoked license. This depends on factors such as the circumstances of the revocation, the time left on the policy, and the type of policy you have. It is best to contact your insurance company directly to understand your options.

If your insurance policy is cancelled, you will need to find alternative transportation until your license and insurance are reinstated. Driving without a valid license or insurance is against the law and can result in serious consequences if you are caught.

To reinstate your license, you will need to fulfil certain requirements outlined by your state's department or bureau of motor vehicles. This may include paying any applicable fines, completing a defensive driving course, and providing proof of car insurance.

In the meantime, you may be able to explore alternative insurance options, such as high-risk insurance policies, adding a co-driver to your policy, or state-assigned risk pools.

You can get insurance with a suspended license

While it is possible to get car insurance with a suspended license, it is not a straightforward process and is dependent on several factors.

Reasons for License Suspension

Firstly, it is important to understand the reasons why a license may be suspended. Common reasons include:

• Driving under the influence (DUI) or while intoxicated (DWI)
• Unpaid traffic tickets
• Accumulation of a high level of driver's license points
• Driving without insurance
• Lapse in auto insurance coverage or driving without insurance
• Medical complications such as epilepsy, cognitive decline, or consciousness disorders

Insurance Requirements During Suspension

If your license is suspended, you may still be able to insure your vehicle, but your insurer may cancel your insurance and prevent you from purchasing a new policy. It is best to contact your insurance company directly to understand their specific policies.

Some general insurance requirements during a license suspension include:

• SR-22 requirements: This is a certificate of financial responsibility filed by your insurance company with your state, indicating that you are meeting the state's minimum auto liability insurance requirements.
• FR-44 requirements: Similar to an SR-22, but with higher liability limits, and typically required for suspensions involving alcohol or drugs.
• Insurance cancellation and non-renewal: While insurance policies typically cannot be cancelled mid-term, insurers may refuse to renew coverage after a suspension.

Obtaining Insurance with a Suspended License

Obtaining car insurance with a suspended license can be challenging, but it is possible. Here are some steps you can take:

• Seek non-standard providers: You may be considered a high-risk driver and may need to explore high-risk insurance companies. Some carriers, such as The General, Geico, and Bristol West, offer coverage options for high-risk drivers, including SR-22 and FR-44 filing.
• Apply for a hardship or restricted license: A hardship or restricted license allows you to legally drive to specific locations, such as work or medical appointments. With this license, you may be able to obtain insurance, although your options may be limited depending on the reasons for your license suspension.
• Shop around for the cheapest insurance: Compare quotes from multiple companies, as rates can vary significantly. High-risk drivers often pay higher premiums, so finding the best rate is crucial.
• Obtain an SR-22 or FR-44: You may be required to have your insurer file one of these certificates of financial responsibility with your state to prove you carry the required minimum insurance.

Insurance Rates with a Suspended License

It is important to note that a suspended license will likely result in higher insurance premiums due to the increased risk associated with insuring high-risk drivers. Your insurance rates may also increase even after your license is reinstated, depending on the cause of the suspension.

To mitigate the impact on your insurance rates, consider the following:

• Improve your credit score: Pay your bills on time and maintain a low credit utilization ratio.
• Maintain a clean driving record: Practice safe driving habits and avoid tickets and accidents.
• Look for discounts: Explore potential discounts offered by insurance providers, such as bundling discounts, paid-in-full discounts, defensive driving course savings, and professional affiliation discounts.
• Explore a telematics program: Enroll in a program that tracks your driving habits and adjusts your premium accordingly.
• Adjust your coverage selections and deductibles: Reducing your coverage types and limits or increasing your deductibles can lower your premium, but ensure you maintain adequate protection.

You may need to submit an SR-22 form

If your license has been revoked, you may need to submit an SR-22 form to get back on the road. An SR-22 is a document that proves you have a car insurance policy that meets the minimum coverage requirements in your state. It is not a type of insurance, but rather a certificate of financial responsibility that confirms you are carrying the required amount of insurance to drive legally.

SR-22 forms are 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.

To obtain an SR-22 form, you will need to contact your insurance company and request one. There is usually a small fee for this, which you will need to pay to your insurer. They will then be responsible for submitting the certificate to the Department of Motor Vehicles (DMV). If you do not currently have an insurance policy, you will first need to purchase one from an insurer that is willing to work with high-risk drivers.

It's important to note that not all insurance companies offer SR-22 filings, and those that do may place you in the high-risk driver category, which can result in increased premium rates. Additionally, you will usually need to keep your SR-22 certificate and the corresponding insurance policy in force for a specified period, typically around three years. If your policy is cancelled or lapses during this time, your insurance company is required to notify the DMV, and your license may be suspended or revoked.

Insurance companies have access to DMV records

Insurance companies will check your driving record when you apply for a new policy and at renewal. They will also check your driving record if you request a new quote, change the level of coverage, change your car, or add an extra driver to the same coverage. If you move, your policy term will change, and the risk will be reassessed, so your driving record will be checked again.

In most states, insurance companies will only look into the past three years of your driving record. However, more serious violations, such as DUIs, can stay on your record for up to seven years and negatively impact your premium.

It is important to note that insurance companies are not allowed to share the information they obtain from DMV records with other parties. This information is protected by state and federal laws, including the Information Practices Act of 1977 and the Driver's Privacy Protection Act.

You must notify your insurer if your license is suspended

If your license is suspended, you must notify your insurer. This is because driving with a suspended license is against the law and your insurance may be invalidated.

If you fail to notify your insurer of a suspended license, your policy will likely be cancelled. This is because insurance companies regularly access DMV records, allowing them to determine whether a policyholder’s driver’s license is suspended or revoked. This helps insurers assess their risk. If an insurance company discovers a suspension or revocation, it may affect your policy, potentially leading to an adjustment in your premium or even cancellation of your coverage.

However, if you are in the middle of your policy term and your policy does not contain an exclusionary clause for driver suspensions, you will likely remain covered until the end of your term.

If your license is suspended, you may be able to get car insurance if you apply for a hardship license or designate someone else as the insured driver. However, this is not always the case, and it is best to contact your insurance company directly to be sure.

Frequently asked questions