Looking for car insurance but don’t have a driver’s license? You’re not alone: many unlicensed drivers own cars.
For instance, a senior who no longer drives might decide not to renew their license but still own a car. That way, others can take them to shops, family gatherings, and similar places.
The consequences of driving without car insurance will make you want to secure a policy—whether you’re behind the wheel or not.
Car Insurance Is Important, Even Without A Driver’s License
Carrying an auto insurance policy is mandated by law in 49 of the 50 U.S. states. As of this writing, only New Hampshire bucks the trend, though drivers there must still meet “alternative financial responsibility requirements.”
Not having auto insurance can result in stiff penalties, like thousands of dollars in fines, losing your vehicle registration, having your car towed, and depending on the situation… getting sued.
If the threat of legal action doesn’t concern you, the potentially steep repair bill from a car accident just might. According to the National Safety Council, the average two-car accident results in nearly $9,000 worth of damage.
Getting Car Insurance Without A License
Situations such as the one described above, where a car owner elects not to get or renew his or her driver’s license but still wishes to own a car, aren’t the only times the topic of auto insurance for unlicensed drivers might arise. Another situation is when people involuntarily lose their license following a traffic-related incident.
In such cases, car insurance is available where the car’s owner is not the primary driver.
- If the primary driver is a spouse, that person should be able to add the vehicle to their policy.
- If the primary driver is a child, the vehicle’s owner can get a policy that excludes them (the owner) from operating the vehicle but insures the child serving as the primary driver.
As you discuss auto insurance options with potential insurance companies, ask about Uninsured Motorist Coverage. It can help with expenses if you're injured in a car accident and the at-fault driver can't be identified, doesn't have insurance, or doesn't have enough insurance to cover your claim.
SR22 Forms, Unlicensed Drivers & Car Insurance
If you’re dealing with the ramifications of a driver’s license suspension, expect to hear about an SR22 or a policy certified for financial responsibility . (And if you’re driving with a suspended license, stop! The consequences can be severe.)
An SR22 is a certification an insurance company must provide to your state's department of motor vehicles or similar authority when you apply to have your driving privileges reinstated. It’s sometimes referred to as “SR22 insurance,” but an SR22 is not insurance. Some companies call it a “certificate of financial responsibility.” In most states you’ll be required to maintain the SR22 certification for 3 years.
Much More Than Cheap Car Insurance
Can you insure a car without a license? Yes, but it will require some work on your part to find a quality car insurance company that’s also affordable. You may not want to go with the cheapest car insurance you can find, as it might leave you exposed to surprise expenses. If you’re curious about your options for car insurance with no license, let's talk. Call, click, or come in today to speak with a Direct Auto Insurance agent near you.
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There are several reasons why someone without a driver’s license might need car insurance. For example, due to age or health problems, you might no longer drive but still own a car that a family member drives to take you to appointments. Or you might have a suspended license and have a court order to get car insurance.
Getting car insurance without a driver’s license can be challenging. But here’s how you may be able to do it.
Can I Get Car Insurance Without a Driver’s License?
While some insurance companies will decline coverage to someone without a driver’s license, other insurers will extend coverage. But it may cost you significantly more than a licensed driver.
That’s because car insurance companies look at the last three to five years of your driving record when setting rates. If you do not have a driving record, had your license suspended or have not had a license for a number of years, you’ll generally be seen as a higher risk, which usually means higher car insurance rates.
Another reason you can expect to pay more is because insurers see an insurance “coverage gap” as a higher risk. This is a period of time when you don’t have insurance, for instance if you didn’t have insurance because you canceled a policy before a new one was in place or you were between cars. Generally, a driver who has continuous coverage will pay less than someone who has a coverage gap.
Reasons to Get Car Insurance with No License
Since getting an auto policy without a license can be difficult, it’s a good idea to work with a local agent who can help you navigate the application process and find the best car insurance companies to suit your needs.
Here are some common reasons you might need car insurance without a driver’s license.
You can no longer drive
If you are disabled or no longer able to drive, you might own a car for transportation but have someone else drive you, such as a family member or caregiver. But as an unlicensed driver listed on the policy, you could face higher rates.
One option might be to buy an insurance policy and list your driver as the primary operator and make yourself an “excluded driver.” The upside of listing yourself as an excluded driver is that you won’t have higher rates as a listed unlicensed driver. The downside is that if you do drive your car and get into a car accident, you won’t have any coverage.
The rules for excluded drivers vary by insurance company and state. Some states will not allow driver exclusions. If driver exclusions are allowed in your state, you’ll need to complete a “named driver exclusion” form.
You are insuring a car for a minor
Many lenders won’t extend an auto loan to drivers under age 18, which can make it difficult for a minor to buy a car. In this scenario, you might buy a car (or take out a loan) to help a young driver, even though you don’t have a license or intend to drive the car yourself.
You may be able list yourself as an excluded driver on the auto insurance policy and list your teen driver as the primary operator. But again, the rules for excluding a driver vary by state and company.
You are a car collector or storing a vehicle
There’s no law that says someone without a driver’s license can’t collect cars. For example, you bought a classic car to restore and do not intend to drive it on public roads.
If you own a vintage, antique or replica vehicle, it’s worth looking into classic car insurance. Some classic car insurance companies sell coverage types that cover spare parts and automotive tools, and “vehicle under construction” coverage that periodically increases your coverage limits to keep pace with your restoration work.
If you are storing a car that doesn’t qualify as a classic vehicle, you’ll still want car insurance. A comprehensive coverage-only policy might be a good fit for you. Comprehensive insurance covers problems like fires, floods, hail, vandalism, theft and falling objects.
But keep in mind, a comprehensive-only policy is not sufficient coverage if your car is driven on public roads. Most states require liability car insurance if the car is driven. This coverage pays for property damage and injuries to others. If you or someone driving your car causes an accident without liability insurance, you could face a financial disaster.
Your driver’s license has been suspended or revoked
If your license has been suspended or revoked due to your driving record, such as a DUI conviction or too many traffic violations, your state or a court order might require you to get “SR-22 insurance.”
An SR-22 is a form that your insurance company must file with your state that shows you have at least the state’s minimum car insurance requirements. A good way to satisfy an SR-22 requirement if you don’t own a car is by purchasing non-owners car insurance.
Car Insurance With No Driver’s License FAQ
Do I need car insurance if I own a car but do not have a license?
If you own a car that will be driven on public roads, you need car insurance. That’s because liability car insurance is required in most states. Without liability insurance, you’ll be on the hook for any property damage or injuries if the driver of the car is at-fault for an accident.
How much car insurance do I need?
The best way to determine how much car insurance you need is to start with liability insurance. It’s a good idea to buy more than the required state minimum. A rule of thumb is to buy enough liability insurance to cover your assets, like your house and savings. It’s also a good idea to buy uninsured motorist insurance, even if it is optional in your state.
Then you can add optional coverage types to fill coverage gaps. collision and comprehensive insurance are good to have for accidents (like crashing into another car), flood damage, car theft and more.
How do I buy car insurance without a driver’s license?
Buying a car insurance policy without a driver’s license can be difficult—and expensive. Many car insurance companies see someone without a driver’s license as a higher risk to insure.
The best way to find a good policy is to compare car insurance quotes from multiple insurance companies. You might want to work with an independent agent who is familiar with the car insurance options in your area and can help you find the best policy that fits your needs.