Vehicle Licence: Insurance's Missing Piece

Vehicle insurance is a requirement for driving in many places. In the UK, for example, you must have motor insurance to drive on UK roads, with third-party insurance being the legal minimum. In Ontario, Canada, automobile insurance is also compulsory, and proof of insurance coverage is required to register a vehicle or renew registration. In Florida, USA, drivers must show proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance before registering a vehicle. While the specifics of vehicle insurance vary by location, it is generally necessary to have some form of insurance to drive legally.

Vehicle registration and insurance

In the United Kingdom, drivers are legally required to have motor insurance to drive on UK roads. The legal minimum requirement is third-party insurance, which covers accidents causing damage or injury to other individuals, vehicles, animals, or property. However, it is important to note that this type of insurance does not cover the cost of repairing the insured individual's vehicle.

In the United States, insurance and registration requirements differ from state to state. For instance, in Florida, before registering a vehicle with at least four wheels, individuals must provide proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance. Continuous insurance coverage is mandatory, even if the vehicle is not being driven or is inoperable. Additionally, vehicles must be insured with a Florida policy when a non-resident accepts employment or enrolls their children in a Florida public school.

While specific regulations vary, the common theme across these locations is the requirement for vehicle registration and insurance. It is important for individuals to familiarize themselves with the specific rules and regulations of their respective locations to ensure compliance with the law and avoid penalties.

Getting insurance without a license

It is possible to get car insurance without a license, but some companies may be wary of insuring customers without a license, and some states require you to list at least one licensed driver on the policy.

If you are buying car insurance for the first time, the insurer will typically ask for your driver's license number to check your driving history. If you don't have a license, the insurer may ask for the driver's license number of the primary driver, and their driving history may be used to determine your auto insurance premium.

The person you list as the primary driver should be the one who will most frequently be using the vehicle. This could be your spouse, a family member, or a roommate.

You can also list yourself as an excluded driver on the policy, but this means that the insurance company won't cover any claims that occur if you decide to drive.

Another option is to get parked-car insurance if your car is kept in storage and won't be driven. An auto insurer likely won't require you to have a driver's license for this type of insurance, since the covered vehicle won't be driven. However, you will still be considered uninsured if you drive your car while only having this type of insurance.

If you can't find an insurer that will sell you a policy because you don't have a license, you may consider adding a licensed driver as the co-owner of your vehicle on the registration. This will likely increase the chances of getting your vehicle insured, as vehicle ownership is a common requirement for getting car insurance.

In some places, such as Ontario, vehicle insurance is compulsory, and every vehicle registered in the province must be insured. Vehicle registration includes license plates and a vehicle permit.

Insurance and driving licences

Driving a vehicle without insurance is illegal in many places. In the UK, for example, you must have motor insurance to drive on the roads. In Ontario, Canada, every vehicle registered in the province must be insured.

Vehicle insurance covers the cost of injury or damage caused by the driver of the insured vehicle. In Australia, for example, vehicle owners pay a motor injury insurance premium to cover the cost of injury or death that they or their vehicles may cause in a crash. This includes compensation for past and future economic loss, claims management expenses, and care and support.

To get vehicle insurance, you will need to provide various documents and details to the insurance company. These may include:

• Vehicle information, such as the year of first registration, fuel type, and any modifications.
• A V5C, or 'log book', which proves you are the car's 'registered keeper'.
• Personal details, such as your name, date of birth, address, and occupation.
• Driving licence summary, which can be obtained using a 'check code' or 'share code' from the DVLA in the UK.
• Proof of your no-claims bonus, if you have one.
• Bank details, if you are paying for the insurance by card or setting up a direct debit.
• Claims and accident history, including any driving convictions.
• Details of any named drivers you wish to add to the policy.

It is important to note that the requirements for vehicle insurance may vary depending on your location and the insurance company. It is always best to check with your local authorities and insurance providers to ensure you have the correct information and documentation.

Insurance and vehicle ownership

In the UK, you must have motor insurance to drive your vehicle on the roads. Third-party insurance is the legal minimum, covering you in case of an accident that causes damage or injury to any other person, vehicle, animal, or property. However, this does not cover any other costs, such as repairs to your own vehicle.

Vehicle Ownership and Registration

Vehicle ownership and registration are crucial aspects of insurance. In Ontario, for instance, automobile insurance is mandatory, and every vehicle registered in the province must be insured. Before registering or renewing a vehicle's registration, you must provide proof of insurance coverage.

It is important to note that the registered keeper of a vehicle may not always be the owner. The registered keeper is the person responsible for the vehicle's upkeep, including road taxes, MOT, and other services. In the case of a company car, the company is the owner, but the employee who drives the car is the registered keeper.

Insurance Requirements for Vehicle Owners

When taking out insurance, most policies assume that the insured is both the owner and the registered keeper of the vehicle. Some insurers require the insured to be the registered keeper, and they may have restrictions on insuring non-owners. It is essential to be transparent about ownership details, as failing to disclose this information may invalidate the policy.

Insurance Coverage for Non-Owners

While it is generally straightforward to insure a vehicle you own, insuring a vehicle you do not own can be more complex. Some insurers will only insure owners, while others may have restrictions on the types of non-owned vehicles they will cover, such as a partner's car, a parent's car, an employer's car, or a leased vehicle.

Additionally, some insurers may charge higher premiums for insuring a vehicle that is not owned by the policyholder. It is important to shop around and compare prices, as insurance rates can vary depending on the insurer and the specific circumstances.

Insurance and Vehicle Licensing

Vehicle licensing is a critical component of road safety and compliance. In Ontario, vehicle registration includes licence plates and a vehicle permit. The licence plates are associated with the owner, not the vehicle, allowing for flexibility when changing or selling vehicles.

In summary, vehicle insurance, ownership, and licensing are interconnected aspects of road safety and compliance. While specific regulations and requirements may vary by location, it is essential to understand the relationship between these elements to ensure proper coverage, registration, and compliance with local laws.

Insurance and vehicle storage

Vehicle insurance is mandatory in some places, such as Ontario, Canada, where every vehicle registered in the province must be insured. In the UK, you must have motor insurance to drive on the roads, with third-party insurance being the legal minimum. This means you are covered if you have an accident causing damage or injury to any other person, vehicle, animal, or property.

If you are not driving your car for a long period of time and plan to keep it in storage, you may wonder if you should cancel your auto insurance policy. It is recommended that you keep your policy active by buying car storage insurance, also known as parked-car insurance, or "comprehensive-only coverage". This covers anything that can happen to your vehicle while it is stored or parked, including theft, hail, fire, or other mishaps. You can reduce your car insurance costs by dropping or reducing coverages that protect against events that can occur while driving. However, it is important to note that many states and lenders won't allow you to have comprehensive-only coverage. In this case, you can still save money by reducing coverages such as liability coverage, uninsured motorist coverage, or collision coverage to the lowest possible level.

If you decide to cancel your car insurance policy while your vehicle is in storage, there are some drawbacks. Firstly, you will create a gap in your auto insurance history, which can cause your insurance company to regard you as a high-risk driver and may result in higher premiums when you reinstate your policy. Secondly, you will not be protected against accidents or damage to your vehicle while it is in storage. For example, if a tree falls on your garage, you will have to pay for the repairs out of your own pocket. Lastly, you may not be allowed to cancel your car insurance policy, especially if you are financing your vehicle, as insurance is often a condition of your car loan.

If you need to store your car for a long period, it is best to contact your insurance provider to discuss your options. It may be possible to reduce your coverage to a comprehensive-only policy, but some insurance companies will only offer this if your car is parked for a minimum amount of time, such as 30 days or more. Additionally, if your vehicle is leased or financed, your lender will likely require you to have a full-coverage policy.

Frequently asked questions