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Drivers need to have automobile insurance to fulfill legal requirements and provide asset protection. But is car insurance with no license available or do policyholders need to have an active license to drive? Here's what motorists need to know to answer this question.
Can you get car insurance with no driver’s license?
It's important to know the basics of auto insurance including whether it is possible to get car insurance with no license. The law does not require an individual to have a license to get covered. But many large insurers do not offer coverage to unlicensed drivers.
It may be a good idea to work with an insurance broker when trying to get car insurance with no license. Brokers will know which insurers offer this kind of coverage. Smaller local insurers or regional insurance companies may also be more likely to offer coverage to individuals lacking an active license.
Drivers with a suspended license may also want to look into SR-22 insurance. SR-22 is a certificate of responsibility that indicates the motorist meets state minimum coverage requirements. An SR-22 certificate is required for drivers who have certain driving-related violations, such as DUI convictions. Insurers who sell policies to high-risk drivers are said to offer SR-22 insurance.
How to get car insurance without a license
For unlicensed individuals trying to determine how to get car insurance with no license, here are the steps that must be taken.
Research insurers offering coverage to unlicensed drivers
Since not all insurers offer car insurance with no license, it's important to research companies willing to provide this type of coverage. An insurance broker may be able to help.
Obtain insurance quotes
Although a limited number of companies provide car insurance with no license, it is still important to shop around for coverage. Those without a valid license who are looking to get insurance coverage should get quotes from several different providers. This will enable policyholders to pay the most affordable premiums possible.
Apply for a policy for drivers without a license
After identifying an affordable policy offering car insurance with no license, the next step is to apply for a policy. This will involve providing contact information, personal details, and information about what cars will be insured on the policy.
List yourself as an excluded driver
When purchasing car insurance without a license, it's necessary for the unlicensed policyholder to be listed as an excluded driver. This makes it more likely an insurer will be willing to provide coverage. That's because if a person is listed as an excluded driver, the insurer doesn't have to cover any accidents that individual causes.
An insurer doesn't want to be held responsible for incidents an unlicensed driver might cause upon getting behind the wheel. When an unlicensed person buys a policy and is listed as an excluded driver, it eliminates this risk.
How much coverage do you need with an unlicensed driver's insurance policy?
It is always difficult to determine the amount of car insurance you need. That's especially the case when buying car insurance without a license.
A policyholder buying coverage with no license will want to make sure to comply with state laws for coverage. This could mean ensuring there's a sufficient amount of liability insurance in case someone driving the policyholder's car becomes involved in a collision and injures others.
If the purpose of the policy is to make sure the policyholder is covered if there is damage to his own motor vehicle, then collision and comprehensive coverage should also be purchased as well. This coverage is necessary for an insurer to pay to repair or rebuild a vehicle in the event of an accident or other covered incident.
How do you get car insurance with a suspended license?
Getting car insurance with a suspended license can be difficult because most often a license is suspended because of driving violations. This could be because of a DUI, reckless driving conviction, or similar offense.
Insurers view drivers with a suspended license as high risk. As a result, many insurers will not provide coverage at all in this situation. However, some companies provide policies for high-risk drivers. This is often referred to as SR-22 insurance. That's because courts or other officials may order high-risk drivers to submit an SR-22 form providing proof of financial responsibility before driving.
Drivers with a suspended license can look for companies offering SR-22 insurance, even if they aren't required to submit an SR-22 form. This way, they are more likely to find an insurer that won't turn them down.
Can you buy a car without a license?
It is possible to buy a car without a license. This may be necessary in many situations. For example, an elderly person might want to buy a car for a caregiver to drive even if the elderly person won't be driving the vehicle themselves. Or a collector might want to buy a classic car even if the collector no longer has a license. In this case, it would be important to look into auto insurance for classic cars.
When buying a car without a license, dealers will still require the purchaser to have proof of insurance. That means it will be necessary to get a policy from a car insurance company offering car insurance without a license. A licensed motorist must be listed as the primary driver.
FAQs
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It is important to buy car insurance with no license when purchasing a vehicle. That's because dealers require insurance for any car before it is driven off the dealer's lot.
Individuals who own vehicles but do not have a license to drive them will also want to get car insurance without a license. That's because the state will require insurance, and the car owner will want to make certain that losses are covered if the vehicle is involved in a crash or is damaged by another type of incident such as vandalism or theft.
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It is possible to register a car without a license. A license is required to operate a vehicle, but not to own or register one. An individual who owns and registers a car will need to insure the vehicle. This is true even if the owner will not be driving the vehicle. The owner will need to get car insurance without a license, and will need to be an excluded driver on the policy.
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In general, a person who owns a car must insure the car. Most insurers will not allow the vehicle to be insured under someone else's policy. However, a small number of insurers may be willing to allow a policyholder to insure a car they do not own, provided they have an insurable interest. That means a legitimate interest in the vehicle.
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The person who should be listed as the primary driver is the individual who will be driving the vehicle most frequently. This will depend on the situation. For example, a parent who buys a car for a child and who insures the vehicle would name the child. An elderly individual who buys a car for a caregiver would name the caregiver as the primary driver. The key is to think about who is going to drive the vehicle most often.
Our Insurance Expert
Christy Bieber is a full-time personal finance and legal writer with more than a decade of experience. She has a JD from UCLA as well as a degree in English, Media and Communications with a Certificate in Business Management from the University of Rochester. In addition to writing for The Ascent and The Motley Fool, her work has also been featured regularly on MSN Money, CNBC, and USA Today. She also ghost writes textbooks, serves as a subject matter expert for online course design, and is a former college instructor.
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