Get Insured: Suspended Licenses And Auto Insurance Options

Getting car insurance with a suspended license is possible, but it is a challenging process. While your car insurance won't be automatically canceled, you still can't legally drive. You will likely need to have another driver on the policy and may pay more for the coverage. You may be able to keep your auto insurance if the suspension ends before the renewal. Most car insurance companies require an insured driver to be licensed.

Getting a restricted or hardship license

A hardship or restricted license allows a person with a suspended license to drive to specific places at certain times. The purpose of a hardship license is to allow people to avoid losing their jobs and to meet other important obligations that require driving.

Who Qualifies for a Restricted or Hardship License?

Each state has different requirements for obtaining a hardship license. Generally, a driver's eligibility depends on why the license was suspended, the motorist's driving record, and the type of license the driver had before the suspension. Commercial drivers are usually not eligible for hardship licenses.

How to Apply for a Restricted or Hardship License

Procedures for obtaining a restricted license vary by state. Most states require drivers to submit an application through the DMV, and some states charge a restricted license fee. A driver may also need to attend a hearing where a judge or DMV official determines whether to issue a hardship license. At the hearing, the motorist must prove that they need to drive for reasons such as getting to work or school.

Common Conditions and Restrictions of a Hardship License

The restrictions of hardship licenses typically depend on the reason for the suspension and the driver's circumstances. Common restrictions include:

• Time and place limitations: Restricted driving privileges may be limited to certain times and specific places, such as driving only during daylight hours or only to and from work and school.
• Ignition interlock devices: In DUI cases, an ignition interlock device (IID) may be required for obtaining a hardship license.
• Participation in educational programs: In some cases, a driver may need to participate in a substance abuse treatment program as a condition of having a hardship license.
• Hard suspension periods: DUI offenders typically have to complete a mandatory suspension period before they can apply for restricted privileges. During this period, the driver cannot operate a vehicle.

Consequences of Violating the Terms of a Restricted or Hardship License

Drivers who violate the conditions of their hardship license will usually have it revoked, and in most states, they will not be able to reapply for another hardship license. In some states, violating the terms is a criminal offense, punishable by jail time and fines.

Maintaining insurance coverage

Avoid a Gap in Coverage

If you let your insurance policy lapse during your license suspension, you will likely face higher rates when you reinstate your license and obtain new insurance. This is because insurers consider a lapse in coverage as a red flag, often associated with high-risk drivers. By maintaining continuous coverage, you can avoid being classified as a high-risk driver and prevent a significant increase in your insurance rates.

Comply with State Requirements

Depending on your state's regulations, you may be required to maintain a minimum level of insurance coverage even if your license is suspended. This is to ensure that your vehicle remains insured and protected against any potential risks or damages. Failure to comply with these requirements can result in fines, penalties, and legal consequences.

Satisfy Loan or Lease Agreements

If you have financed or leased your vehicle, your loan or lease agreement may require you to maintain insurance coverage regardless of your license status. This is to protect the lender's investment in the vehicle. Failing to maintain insurance coverage would be a violation of your agreement and could lead to additional financial obligations or legal repercussions.

Obtain a Hardship or Restricted License

If you need to drive to work, school, or medical appointments during your license suspension, you may be eligible for a hardship or restricted license. However, obtaining this type of license often requires you to have valid insurance coverage. By maintaining your insurance, you increase your chances of obtaining a restricted license and regaining some driving privileges.

Protect Against Uninsured Losses

Even if your vehicle is not being driven, maintaining insurance coverage is essential to protect against potential risks. For example, your parked car could be damaged in a hit-and-run incident, vandalized, or stolen. Without insurance, you would have to bear the full cost of repairs or replacement, which could be financially devastating.

Facilitate License Reinstatement

In some cases, maintaining insurance coverage is a requirement for reinstating your driver's license. Before your license can be reinstated, you may need to provide proof of insurance, complete a defensive driving course, or meet other state-specific requirements. By keeping your insurance coverage, you can ensure that you meet these requirements and expedite the process of reinstating your driving privileges.

Applying for an SR-22 or FR-44 form

An SR-22 form, also known as a "Certificate of Financial Responsibility" or "SR-22 Bond", is a document that your insurance company files with the state to certify that you carry the mandatory minimum amount of liability coverage. An SR-22 is not an actual "type" of insurance but a form filed with your state. This form serves as proof that your auto insurance policy meets the minimum liability coverage required by state law.

An FR-44 form is similar to an SR-22, but the key difference lies in the minimum liability coverage amounts. The FR-44 typically requires higher liability limits than an SR-22 and is generally mandated for individuals convicted of more serious offences, such as DUIs with higher blood alcohol concentrations or repeat offences.

If you need to obtain an SR-22 or FR-44, you should start by calling your insurer and asking if they will file the form on your behalf. Not all insurance companies offer SR-22 or FR-44 filing, so if your current carrier does not, you'll need to switch to a company that does. You may need to purchase a policy through a non-standard insurer. If you don't currently have car insurance, you'll need to get a policy in order to obtain an SR-22 or FR-44.

If you need an SR-22 or FR-44 in a state you don't live in, you will typically need to obtain it from an insurance provider licensed in the state where the requirement originated. Your insurance company can assist in obtaining the form and ensuring compliance with the state's regulations, even if you reside elsewhere.

If you need an SR-22 or FR-44 but don't have a car, you can obtain a non-owner insurance policy. This type of policy provides liability coverage when you drive a vehicle that you don't own. It fulfils the requirement without being tied to a specific vehicle, ensuring compliance with state regulations even if you don't own a car.

The cost of obtaining an SR-22 or FR-44 varies depending on the insurance company. Some file the certification for free, while others charge a fee that typically ranges from $15 to $25. The fee may apply at each renewal, and it may be charged upfront or simply added to your premium.

In most cases, you'll need to carry an SR-22 or FR-44 for three years. It is your responsibility to alert your insurance company when it comes time to remove the form from your policy.

Exploring non-standard insurance providers

If you have a suspended license, you will typically be considered a high-risk driver by most insurers. If your current insurance policy is canceled or not renewed, you may need to seek coverage from a high-risk insurance company or a non-standard insurance provider. Non-standard insurance providers are typically willing to extend coverage to high-risk drivers. Here are some non-standard insurance providers that you can explore:

• The General: This carrier is available in all 50 states and offers SR-22 filing.
• Geico: Geico earned a 2024 Bankrate Award for Best Auto Insurance Company for High-Risk Drivers. However, options may be limited depending on the reasons for license suspension.
• Bristol West: Bristol West offers coverage options for high-risk drivers, including SR-22 and FR-44 filing.

When exploring non-standard insurance providers, it is important to compare quotes from multiple companies to find the most affordable rates. You may also want to look for potential discounts offered by these companies, such as bundling discounts, paid-in-full discounts, or discounts for completing a defensive driving course.

In addition to non-standard insurance providers, you can also consider specialized insurers or non-owner and high-deductible policies. Maintaining continuous coverage and improving your credit score can also help reduce insurance costs while dealing with a suspended license.

Adding a household member as the insured driver

It is difficult to get car insurance with a suspended license, but it is not impossible. If you are looking to add a household member as the insured driver, there are a few things to keep in mind.

First, it is important to disclose all household members when applying for car insurance. This includes all licensed drivers in the household, except for unlicensed teenagers or those younger than 14. The insurance policy should be expansive enough to cover everyone who drives the car, including those outside the household who may use the vehicle occasionally. Friends, neighbours, live-in nannies, older licensed children, and other family members who live with you should be listed as drivers on the car insurance policy.

If the household member you are adding has a suspended license, you may need to explore specialised insurers, compare quotes, and consider non-owner or high-deductible policies. A suspended license usually results in higher insurance premiums due to the perceived risk by insurers, and the insured may need to file an SR-22 or FR-44 to meet state requirements.

In some cases, the household member with a suspended license may be able to obtain a hardship or restricted license, which allows them to drive only for specific tasks, such as getting to and from work. This can make it easier to obtain insurance, but the insured will still be seen as a high-risk driver and can expect higher rates.

Additionally, it is important to note that insurance companies typically require that the policyholder be the main driver of the insured vehicle. It is illegal for someone other than the main driver to be the policyholder, which is known as fronting.

By following these guidelines, you can effectively add a household member as the insured driver, even if they have a suspended license. However, it is important to shop around and compare quotes to find the best rates and coverage options for your specific situation.

Frequently asked questions