Auto Insurance Options With A Suspended License

Getting car insurance with a suspended license can be challenging, but it is not impossible. If you are one of the 10 million Americans dealing with a suspended license, you will likely be classified as a high-risk driver, resulting in very high premiums. Your best options are to explore specialised insurers, compare quotes, and consider non-owner or high-deductible policies.

High-risk drivers and higher premiums

A suspended license is likely to result in higher insurance premiums due to the perceived increase in risk by insurers. Not all insurance companies will insure someone with a suspended license, and those that do will likely classify you as a high-risk driver, which can result in very high premiums.

High-risk drivers are those who are considered more likely to file insurance claims than a typical driver. Insurance companies look at your driving record to determine how risky it would be to insure you and how much to charge you for coverage. Your insurer will classify you as either low or high risk based on factors such as whether you have DUI (driving under the influence) convictions, several at-fault car accidents, or a number of traffic violations on your record. High-risk drivers typically pay much more expensive car insurance premiums because providers view them as greater liabilities and are more likely to make late or missed payments.

There is no standard definition for what constitutes a "high-risk driver", and the factors used to classify drivers as low or high risk vary by insurer. However, some common characteristics of high-risk drivers include:

• DUI or DWI convictions
• Reckless driving convictions
• At-fault accidents
• Multiple speeding tickets
• Multiple moving violations (e.g. running a red light, improper turns)
• Poor credit history
• Lapses in insurance coverage
• New or inexperienced driver
• Multiple insurance claims in a short period
• High-value vehicle

Young drivers, particularly those under 25, are often considered high-risk due to their lack of experience. Additionally, the type of car you drive can also impact your risk level. Sportier and high-performance cars are typically associated with higher risk and can result in higher insurance premiums.

If you've been deemed a high-risk driver, you may have experienced a rate hike or even been dropped by your insurer. However, there are insurance companies that specialize in providing coverage for high-risk drivers. These companies may offer more affordable options, but it's important to compare quotes and explore your options.

To reduce the cost of insurance as a high-risk driver, here are some suggestions:

• Check for available discounts: Many insurance companies offer discounts unrelated to your driving history, such as those for paying your policy in full or having prior coverage.
• Consider a different car: If you're driving a high-risk vehicle, such as a sports car or one with poor safety ratings, consider trading it in for a lower-risk option.
• Be patient: Most speeding tickets and moving violations will no longer impact your insurance rates after three years. Show that you're a safe driver by following traffic laws, and your costs will eventually come down.
• Avoid accidents: Drivers with accidents on their record are deemed higher risk. Going accident-free for three years may make you eligible for discounted rates.

SR-22 and FR-44 forms

FR-44, on the other hand, is required only in Florida and Virginia and is mostly reserved for drivers with convictions related to driving while impaired or under the influence. The key difference between SR-22 and FR-44 lies in the minimum liability coverage amounts. FR-44 typically requires higher liability limits than SR-22, making it a more stringent requirement. For example, in Florida, you need to have a minimum bodily injury liability of $100,000 per person and $300,000 per accident, plus $50,000 for property damage. In Virginia, you need to have a minimum bodily injury liability of $50,000 per person and $100,000 per accident, plus $40,000 for property damage. These limits are much higher than the state minimums for other drivers and are designed to protect others from high-risk drivers.

The cost of SR-22 and FR-44 forms depends on your insurance provider. Many providers charge a small fee for filing the form, while some may waive the cost. It is important to note that having to file an SR-22 or FR-44 form does not necessarily increase your insurance rates, but a poor driving history will. Your rates may also increase as a result of having to purchase more coverage than you would otherwise. However, by driving carefully and avoiding any other infractions, you can prevent your premiums from increasing further and ensure they lower over time.

Keeping your current policy

Keeping your current auto insurance policy when your license is suspended is often the best option to avoid a costly insurance lapse. While your car insurance won't be automatically canceled because your license is suspended, you still can't drive legally. Your car is insured, but you, as a driver, are not.

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. However, you must inform your insurance company that your license is suspended; otherwise, they may cancel your coverage.

Insurance companies usually don't review your driving record in the middle of your policy term. Only a few states allow midterm cancellations due to a suspended license. But you should still contact your insurer and read the fine print of your auto insurance policy. Some insurers are inserting language into policies to address the problem of suspended drivers getting behind the wheel. This typically states that if you don't report within 60 days that a driver on the policy has had their license suspended, that driver will not be covered by your policy.

Also, remember that car insurance companies usually check your driving record upon the renewal of your policy and may deem you a high-risk driver and refuse to renew your policy when the term is up. They must notify you that your coverage will be suspended at least 30 days in advance.

If your license suspension ends before your policy renews, you may be able to keep your current insurance.

Non-owner policies

Non-owner car insurance is a good option if you don't own a car but regularly borrow or rent other people's cars. It is also useful if you don't have a car but need to file an SR-22 or FR-44 form with your state.

Non-owner car insurance provides liability coverage for people who don't have their own vehicle but occasionally drive someone else's. This type of insurance covers injuries or property damage you may cause in an accident. However, it does not cover damage to the vehicle you are driving or your own injuries after an accident. It also does not extend coverage to anyone else living with you, unlike most standard policies.

Non-owner insurance is typically needed in the following situations:

• You often borrow other people's cars.
• You rent cars frequently.
• You frequently use a car-sharing service.
• You drive a company car.
• You need an SR-22 or FR-44 form to reinstate your driver's license after a serious conviction, such as a DUI.
• You want to maintain continuous coverage to avoid higher rates when shopping for insurance in the future.

On the other hand, non-owner insurance may not be the best option if:

• You typically borrow a car from someone in your household, as you should be listed as a covered driver on their policy.
• You regularly borrow the same car from someone you don't live with, as you are likely already covered under their policy.
• You rarely drive or don't drive at all.

Non-owner car insurance is usually less expensive than standard car insurance policies. However, if you need to file an SR-22 or FR-44 form, the cost of the policy will likely be higher. The price depends on factors such as your age, driving record, and how often you plan to drive.

High-risk insurers

If you have a suspended license, you will likely be considered a high-risk driver by most insurers. This means that you will have to seek coverage from a high-risk insurance company. Here are some options to consider:

The General

The General is available in all 50 states and offers SR-22 filing. SR-22 is a form that your insurance company must file with your state, indicating that you are complying with the state's minimum auto liability insurance requirements.

GEICO

GEICO earned the 2024 Bankrate Award for Best Auto Insurance Company for High-Risk Drivers. Keep in mind that the options may be limited depending on the reasons for your license suspension.

Bristol West

Bristol West offers coverage options for high-risk drivers, including SR-22 and FR-44 filing. FR-44 is similar to SR-22 but is required in only some states to demonstrate higher liability limits than those required by the state.

Progressive

Progressive is another insurer that offers coverage for drivers with a suspended license. They may require you to submit an SR-22 form, depending on the state you live in.

Other Options

If you are having difficulty finding coverage or need a carrier that will file an SR-22, you can explore non-standard providers that specialize in high-risk drivers. Maintaining continuous coverage and shopping around for quotes from different insurers can also help you find more affordable options.

Frequently asked questions