Jane Dotson
Whether an unlicensed driver is covered by auto insurance depends on the policy language. In general, an active policy will cover all drivers, even if they are unlicensed. However, some policies have built-in exclusion clauses that limit coverage to specific individuals. Additionally, some states require you to list at least one licensed driver on the policy. Unlicensed drivers can also purchase a vehicle but will not be able to drive it.
| Characteristics | Values |
|---|---|
| Will insurance cover an unlicensed driver? | In general, an active policy will cover all drivers, even if they’re unlicensed. However, some policies have built-in exclusion clauses that limit coverage to specific individuals. |
| Getting insurance without a license | It's possible to get car insurance without a license, but some companies may be wary of insuring customers without a license. Some states require you to list at least one licensed driver on the policy. |
| How to get insurance without a license | List someone else as the primary driver, add a co-owner to your car's registration, buy parked-car coverage, or list yourself as an excluded driver. |
| Insurance for a car in storage | It's possible to insure a car that's in storage or being restored. This is known as parked-car coverage or stored-car insurance, and it covers damage to a car while it's in storage and isn't being driven. |
What You'll Learn
Exclusion clauses
One type of exclusion clause is the Named Driver Exclusion, which specifically identifies individuals who are not covered by the insurance policy if they drive the vehicle and are involved in an accident. This type of clause is typically found in non-standard insurance policies, where there are known high-risk drivers living in the same household as the insured. By excluding these high-risk drivers, policyholders can often obtain lower premiums. However, it is important to note that not all states allow named driver exclusions, and some states may require excluded drivers to have their own auto insurance before being excluded from a policy.
Another type of exclusion clause is the Owned-But-Unlisted Vehicle Exclusion, which applies to vehicles that the insured owns or uses regularly but fails to list as insured on the policy declaration. As the number of vehicles covered by a policy increases, so does the premium. Therefore, excluding certain vehicles can help keep insurance costs down.
In addition to these, there are various other types of exclusion clauses, such as the Family Member Exclusion, Intentional Act Exclusion, Act of God Exclusion, and Punitive Damage Exclusion, each serving a specific purpose in limiting the insurer's liability under certain circumstances.
It is important to carefully review the terms and conditions of an auto insurance policy, including any applicable exclusion clauses, to fully understand the extent of coverage and avoid unexpected costs or liabilities in the event of an accident or claim.
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Permissible parties
In general, auto insurance policies cover "permissible parties", or those who have been given permission by the policyholder to drive the insured vehicle. This includes immediate family members and other drivers that the policyholder allows to operate the vehicle.
However, insurance companies frequently require car owners to identify the members of their household who will be allowed to drive the insured car. If a policyholder fails to list a known authorised driver in a policy, the insurer may deny coverage for auto accident claims, particularly if the person who caused the accident did not have a valid license.
To keep premiums affordable, many states allow insurers to offer exclusion clauses. This means that the policy will not cover certain individuals, whether or not they have a license. For example, if a policyholder's partner has had their license suspended, the insurer might offer a discount on the premium if the partner is excluded from the policy. In this case, the partner would not be covered if they were to get into an accident or harm someone while driving the vehicle.
It is important to note that the final answer to whether a licensed or unlicensed driver is covered by insurance depends on the specific policy language.
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Insuring without a license
It is possible to get car insurance without a license, but it is challenging. Some companies may be reluctant to insure customers without a license, and some states require at least one licensed driver on the policy. However, if you own a car, most states require you to insure it, even if you don't have a license.
How to Get Car Insurance Without a License
Firstly, it is important to note that you cannot be listed as a driver on a car insurance policy if you don't have a license. You can, however, still buy a car insurance policy if someone else drives the car. In this case, you would be the policy owner, and the other person would be listed as a driver.
If you are buying car insurance for the first time, the insurer will ask for your driver's license number to check your driving history. If you don't have a license, they may ask for the license number of the primary driver (the person who will be driving the car the most) and use their driving history to determine your premium. If the primary driver has a poor driving record, your rates may be higher.
You may also be able to get car insurance without a license by excluding yourself as a driver. This reduces the risk for the insurance company, but it also means that you and your vehicle will not be covered if you decide to drive. If you are pulled over or get into an accident, you will be treated as if you were driving without insurance and may face fines and vehicle impoundment.
Another option is to add a co-owner to your car's registration. This can be helpful because vehicle ownership is usually a requirement for getting car insurance. Most states require you to file a form with the DMV and pay a fee to add a co-owner.
If you don't plan on driving your car and will keep it parked or in storage, you may be able to purchase parked-car coverage or car storage insurance. This type of policy only provides comprehensive insurance, covering damage to your car while in storage, and is typically cheaper than standard auto insurance policies. However, if you do drive your car, you will not be covered by this type of insurance.
Reasons to Get Car Insurance Without a License
There are several reasons why you might need to get car insurance without a license:
- Your driver's license has been revoked or suspended. In this case, you may need to get SR-22 insurance, which is a form that your insurance company files with the DMV to prove you have the minimum liability insurance.
- You are insuring a car for a minor. You may be able to buy a policy that covers your teen's car under your name, listing yourself as the excluded driver.
- You only have a learner's permit.
- You collect classic cars or have a car in long-term storage. Some companies offer classic car insurance, which is typically more affordable than regular insurance.
- You want to avoid a lapse in coverage if you plan on driving again in the future.
Insurance Company Options
Most national insurance companies, such as State Farm, Progressive, or Travelers, won't sell car insurance to unlicensed drivers. However, some smaller, localized insurance companies may have options for unlicensed drivers. Geico, for example, offers minimum-liability coverage to drivers without a valid license.
To find insurance without a license, it is recommended to talk to an independent insurance agent, as they may work with local insurers that offer coverage to unlicensed drivers. You can also compare quotes from local providers, as they may be more familiar with your state's guidelines.
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SR-22 insurance
Typically, an active auto insurance policy will cover all drivers, even if they are unlicensed. However, there are exceptions to this rule. Some policies have built-in exclusion clauses that limit coverage to specific individuals. Auto insurance companies either charge bad drivers higher rates or deny them coverage altogether.
Now, let's delve into SR-22 insurance and how it relates to unlicensed drivers.
An SR-22 is a certificate of financial responsibility that some states or court orders require for certain drivers. It is not a type of insurance but a form filed with your state to prove that your auto insurance policy meets the minimum liability coverage mandated by state law. This form is typically required for drivers convicted of offences such as DUI, driving without insurance, or multiple traffic violations.
The SR-22 form is filed by the driver's insurance company directly with the state's Department of Motor Vehicles (DMV) and serves as a guarantee that the driver will maintain the required insurance coverage for a specified period, usually about three years. If your insurance policy lapses during this period, your insurer is legally required to notify the DMV, and your driving privileges will be suspended until your insurance is reinstated.
Obtaining an SR-22
If your insurance company provides SR-22 form filings, they will add the SR-22 endorsement to your existing policy and then file the SR-22 document with the state. If your current insurer doesn't offer SR-22s, you'll need to purchase a new policy, as many insurance companies don't offer coverage for SR-22s. It's essential to inform potential insurers upfront about your need for an SR-22 to save time.
SR-22 Costs
The cost of filing an SR-22 is approximately $25, but this may vary by state and insurance company. Some states require you to pay the filing fee upfront, and you'll need to pay the fee with each policy term that the SR-22 is required. Due to the high-risk nature of SR-22 drivers, your insurance rate may also increase, depending on factors like your ZIP code, vehicle, driving record, and insurance history.
SR-22 Removal
Once you've fulfilled your SR-22 obligations for the prescribed period, your SR-22 status won't automatically be removed from your insurance policy. You must request your insurance company to do so. If your insurance rate increased after filing your SR-22, it may decrease after removal, but this isn't guaranteed.
In summary, while auto insurance policies typically cover unlicensed drivers, certain exclusions may apply. SR-22 insurance is not a type of insurance but a certification that your auto insurance meets state minimums. It is often required for high-risk drivers with a history of traffic violations or DUIs. Obtaining an SR-22 may involve additional costs and could lead to higher insurance rates.
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Lapsed coverage
A lapse in car insurance coverage can have several negative consequences, including higher premiums, driver's license suspension, fines, and a lack of coverage in the event of an accident. Even a brief gap in coverage, such as a single day, is considered a lapse and can result in increased rates.
When a policy lapses, it means the driver has been uninsured for a certain period. This can occur due to missed payments, policy cancellation by the insurance company, failure to renew, or gaps between policies or vehicle ownership.
Insurers may classify drivers with lapsed coverage as high-risk, resulting in higher rates or even declined coverage. Some insurers may deny coverage altogether if the lapse is prolonged, as it indicates a higher risk. The longer the lapse, the more challenging and expensive it becomes to obtain new insurance.
To avoid a lapse in coverage, it is advisable to maintain continuous insurance coverage, pay premiums on time, set up automatic payments, and ensure proper policy effective dates when switching carriers.
If your coverage has already lapsed, contact your insurance company immediately to discuss reinstatement options. Be aware that you may still face higher rates or other consequences, such as legal penalties, even with reinstatement.
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Frequently asked questions
In general, an active policy will cover all drivers, even if they are unlicensed. However, some policies have built-in exclusion clauses that limit coverage to specific individuals.
Yes, you may be able to get car insurance without a license if you exclude yourself as a driver. However, if you are pulled over or get into an accident, you will be treated as if you were driving without insurance, which could result in fines and vehicle impoundment.
It depends on the insurance company. Some insurers will only provide coverage if there is a primary driver on the policy. However, if you don't plan on driving the car, you can list yourself as an excluded driver and list a licensed driver as the primary.
If you have a learner's permit and own a car, you will need insurance before you can get behind the wheel. Contact local insurance agents to find an insurer with more lenient requirements.
Yes, you can buy car insurance with a suspended license, but you'll likely need to get a restricted license or have your insurer file an SR-22 form with the state.
