Auto Insurance: Covering Illegal Citizens?

Auto insurance is a necessity for all vehicles driven in the U.S., but can illegal immigrants get insured? The answer depends on where you live and which auto insurance company you approach. While some states make it easy for undocumented immigrants to buy auto insurance, several states have regulations banning sales to them. However, undocumented immigrants can get car insurance in states that allow them to obtain driver's licenses, as a U.S. driver's license is required to get insured. Currently, 15 states and Washington, D.C., allow undocumented immigrants to obtain driver's licenses, and some auto insurance companies offer policies specifically for this demographic.

Auto insurance for undocumented immigrants in the US

In terms of insurance providers, some companies are known to provide coverage regardless of immigration status. These include State Farm, Progressive, and Allstate. These companies offer flexible payment options, comprehensive coverage options, and multilingual customer support, making them good choices for undocumented immigrants. The monthly rate for these companies averages $117, with State Farm being the most affordable option at $86 per month.

It is worth noting that insurance companies typically require a driver's license to purchase auto insurance. Currently, 16 states and Washington, D.C., allow immigrants to buy car insurance without a U.S. driver's license or citizenship. These states include California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maryland, Massachusetts, New Jersey, New Mexico, New York, Nevada, Oregon, Rhode Island, Utah, Vermont, Virginia, Washington, and West Virginia.

For undocumented immigrants residing in states that do not explicitly allow them to obtain a driver's license, there is still the option of the Deferred Action for Childhood Arrivals (DACA) program. DACA recipients may receive a Social Security number, enabling them to apply for a regular driver's license in most states. However, not all DACA recipients obtain a legal work authorization or Social Security number.

When it comes to purchasing a car, undocumented immigrants may face challenges due to the lack of a Social Security number (SSN). In such cases, an Individual Taxpayer Identification Number (ITIN) can be used as an alternative form of identification for car loans and insurance.

In conclusion, while auto insurance for undocumented immigrants in the US is possible, it depends on the state of residence and the insurance provider. Undocumented immigrants should research their specific state's regulations and reach out to insurance companies directly to understand their documentation requirements and eligibility criteria.

Obtaining a driver's license as an undocumented immigrant

The process of obtaining a driver's license as an undocumented immigrant varies depending on the state of residence. While some states mandate proof of legal residency, others have chosen to allow undocumented immigrants to obtain a driver's license to increase public safety. As of 2024, 16 states and the District of Columbia enable undocumented immigrants to obtain a driver's license without providing evidence of legal status. These states include California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Utah, Vermont, Virginia, and Washington.

The specific requirements and procedures may differ across these states. For instance, in California, applicants are not required to provide a Social Security Number (SSN). Instead, they must prove their identity through documents such as a passport, consular card, or electoral card. Additionally, they need to demonstrate residency in California by providing documents such as rental agreements, utility bills, or school records. Applicants must also swear that they are ineligible for an SSN and unable to submit proof of legal presence in the United States. They are then required to pass the standard driving tests, including a written exam and a driving skills test.

It is important to note that the licenses issued to undocumented immigrants are typically "standard" driver's licenses and are not REAL ID-compliant. These licenses often bear the phrase "FEDERAL LIMITS APPLY" or similar wording, indicating that they are not accepted as identification for certain federal purposes, such as boarding domestic flights or entering specific federal facilities. Additionally, possessing a driver's license does not change one's immigration status and does not prevent potential deportation or removal proceedings.

On the other hand, states like Texas and Florida have stricter requirements and do not grant driver's licenses to undocumented immigrants. In Texas, a social security number is mandatory, which automatically excludes those without legal status. Florida has taken it a step further by not only refusing to issue licenses to undocumented immigrants but also revoking existing licenses, making it a criminal offense to provide transportation to undocumented individuals into the state.

The implications of obtaining a driver's license as an undocumented immigrant vary. While it allows legal driving within the issuing state, it may also raise privacy concerns as law enforcement or ICE could potentially access driver databases. Additionally, the design of these licenses may differ from standard ones, potentially drawing attention to the holder's immigration status. Therefore, it is essential to carefully consider the benefits and risks before applying for a driver's license as an undocumented immigrant.

Insurance companies that provide policies to undocumented immigrants

Auto insurance is a necessity for all vehicles driven in the U.S. While undocumented immigrants can get auto insurance, the process is not uniform across the country. Some states make it easy for undocumented immigrants to buy auto insurance, while several states have regulations banning sales to them.

Currently, 15 states and Washington, D.C., allow undocumented immigrants to get driver's licenses:

• California
• New Jersey
• New York
• Hawaii
• Oregon
• Nevada
• Utah
• Colorado
• New Mexico
• Washington
• Illinois
• Virginia
• Maryland
• Delaware
• Connecticut
• Vermont

In these states, undocumented immigrants can get auto insurance. However, they may face above-average car insurance rates due to a lack of driving history.

The best auto insurance companies for undocumented immigrants in these states include:

• State Farm: One of the largest insurance companies in the U.S., offering high levels of customer satisfaction and affordable rates for people with accidents or speeding tickets on their record.
• Progressive: Offers affordable rates for high-risk drivers and accepts foreign driver's licenses.
• Allstate: Provides multiple coverage options and additional savings programs, with a low-mileage policy option.
• Erie: Offers affordable rates and flexible coverage options, with personalized customer service.
• Liberty Mutual: Operates nationwide and offers bundling discounts.
• Nationwide: Accepts foreign driver's licenses and offers discounts for safe driving.
• Farmers: Offers comprehensive coverage options and discounts for students with good grades.
• Travelers: Accepts foreign driver's licenses and offers customizable policies.
• American Family: Provides flexible payment options and multi-policy discounts.
• AAA: Offers extensive roadside assistance and membership benefits.

State-sponsored auto insurance programs

California's Low-Cost Automobile (CLCA) insurance program offers liability and underinsured motorist protection. Applicants must be within 250% of the federal poverty limit, own a car worth less than $25,000, and have a good driving record.

New Jersey's Special Automobile Insurance Policy (SAIP) covers emergency medical costs in the event of an accident. It does not cover liability costs or damage to the insured's vehicle, and it costs $365 per year or $360 if paid upfront.

Hawaii's Assistance to the Aged, Blind and Disabled (AABD) program provides free auto insurance to eligible individuals with disabilities or who are 65 or older. This program offers basic liability coverage and sometimes provides coverage for vehicle damage.

In addition to these state-sponsored programs, low-income individuals can also save on auto insurance by shopping around for quotes, maximizing discounts, and considering pay-per-mile insurance.

Driving without insurance as an undocumented immigrant

Understanding the Risks

Driving without insurance is illegal in almost every state in the U.S., and it can result in hefty fines or even imprisonment. Additionally, if you are an undocumented immigrant and are caught driving without insurance, you may face deportation. Therefore, it is crucial to find alternate transportation options until you can secure the necessary car insurance coverage.

Getting a Driver's License

The first step towards obtaining car insurance as an undocumented immigrant is to get a driver's license. While most states make it difficult for undocumented immigrants to obtain a driver's license, there are currently 15 states and Washington, D.C., that allow this, including California, New York, and New Jersey. These states offer driver's licenses regardless of immigration status, which is a requirement to get insured. Additionally, the Deferred Action for Childhood Arrivals (DACA) program enables eligible individuals to obtain a Social Security number and employment authorization documents, making them eligible for driver's licenses and auto insurance across the U.S.

Shopping for Car Insurance

Once you have a valid driver's license, you can start shopping for car insurance. Compare quotes from multiple insurance companies to find the best rates and coverage options. Keep in mind that car insurance can be expensive, typically costing more than $1,000 per year for full coverage. However, you can opt for liability-only coverage, which is usually much cheaper. Make sure to familiarize yourself with your state's minimum insurance requirements and ensure that you meet those standards.

Affording Insurance Plans

If the cost of insurance is a concern, there are low-cost programs available in certain states. For example, California and New Jersey offer low-cost auto insurance programs for drivers with annual incomes below a certain threshold. These programs provide basic protection at a fraction of the standard cost.

Frequently asked questions