In the eyes of the law, being a responsible driver requires three things. First, the vehicle should be registered. Second, you should possess a driver’s license. Third, your vehicle must be insured so that you can pay for any damage you might cause to other people’s property by driving.
Unfortunately, many drivers in the United States continue to operate their vehicles despite not having the mandatory insurance. And it might not be the cost that is keeping them from getting car insurance. They might not have a valid driver’s license, and they think this means they can’t get insured. Every mile these people drive, they risk being caught and charged with driving without a license AND driving without insurance. A double hit!
It doesn’t have to be that way. Unlicensed drivers actually can get auto insurance.
In this article we explore no-license auto insurance: what it is and who it’s for. We also review some options for those looking to get back on the road with car insurance.
How to Get No-License Auto Insurance
Talk to an independent insurance agent.
No-license auto insurance is becoming increasingly available as states loosen restrictions on driving without a valid driver’s license. Although getting such insurance can take more effort on your part, acquiring coverage that meets your needs could be invaluable if you’re ever involved in an accident or stopped by police and asked about insurance.
Consulting with an independent insurance agent should put you on the path to obtaining no-license auto insurance and enjoying peace of mind each time you get behind the wheel. Carrying such coverage could prevent you from years of struggling to pay off a financial burden and will protect your finances from responsibilities that might stem from an accident.
You can pick the policy that best suits your lifestyle and budget, from comprehensive coverage to coverage that merely meets your minimum legal responsibility. You can pay rates based on a period of time or actual miles driven. Adjusting the deductibles is another way to customize car insurance and lower the cost.
Plus, an independent insurance agent has access to multiple providers and more competitive rates than an individual insurer could offer. Ultimately, purchasing protection through a trusted professional will give you peace of mind that you won’t have any huge out-of-pocket expenses after an accident.
List someone else as the primary driver.
To obtain no-license auto insurance, you must list someone else as the primary driver of the vehicle, and that person must possess a valid driver’s license. Because each family situation is different, it’s important to be aware of the potential for increased liability if two people share one vehicle and only one is insured.
Not every state recognizes no-licence auto insurance, so it will be necessary to check your state’s regulations before buying a no-license auto insurance policy. If you drive between states, you want auto insurance that travels with you.
Nevertheless, for those individuals who qualify under their state’s laws, no-license auto insurance represents an excellent way to follow the law, enjoy accident protection, and save an unpredictable amount of money in the event of an accident.
Consider this option if you’ve found a reliable insurance company. Look up reviews online. Some insurers offering no-license auto insurance are less than reputable.
Add a co-owner to your car’s registration.
Taking the leap to add a co-owner to your car’s registration is a big decision. It offers exciting opportunities and potential risks, and you should weigh both carefully before making a call. On the other hand, if you keep driving without insurance, you have something to worry about already.
With a licensed driver named as co-owner on your car’s registration, you are on your way to getting no-license auto insurance. Having a policy takes away some of the uncertainty in life by providing a range of financial benefits, including lower premiums and higher liability protection in some cases.
Close relatives, such as a parent, are often the best choice to be added to your car’s registration and subsequently on your car insurance policy. Whoever you choose, ensure that you both understand the roles and responsibilities of being on the same no-license auto insurance policy. Joining forces with another person can open up more options that can benefit both drivers.
Consider parked-car coverage.
Some people refrain from buying car insurance for an extra vehicle because they barely drive it. They might buy temporary auto insurance only as needed, like for a convertible they only drive in summer. But all the time the car is parked, what protects it then?
Parked-car coverage may be a good investment when you have no-license auto insurance. The coverage will provide you with peace of mind knowing that you will be reimbursed for body damage that might occur while it is parked.
As with all kinds of coverage, cheapest isn't necessarily best. Always ask about discounts when getting parked-car coverage or any other type of auto insurance.
List yourself as an excluded driver.
No-license auto insurance allows individuals without a license to drive insured, and thus they are not putting their finances in peril should an accident happen. By listing yourself as an excluded driver on the policy, you can rest assured that you won’t be held financially liable in the event of an accident.
As a result, it gives those with revoked or suspended licenses the right to get behind the wheel again and enjoy greater freedom and flexibility in their lives. Plus, it helps individuals build financial responsibility and gain confidence that will extend beyond the scope of car insurance.
Why Do Insurance Companies Prefer Licensed Drivers?
The reasons insurance companies want individuals with a valid driver’s license are quite varied, but they mostly boil down to an insurer being interested in entering into a contract with people they consider responsible drivers.
Drivers with licenses have proof in their pocket that they passed a driving test and therefore have invested time and effort in driving. They know the rules of the road. Licensed drivers are likely to make wiser decisions behind the wheel than someone who never took—or flunked—the driving test.
Basically, unlicensed drivers are seen by insurers as high risk. Operating vehicles without authorization has many consequences, and insurance companies ultimately want to protect their bottom line and keep premiums affordable for everyone.
How to Get Car Insurance With a Suspended License
Getting car insurance with a suspended license is possible, but it usually requires you to go through the extra step of getting a restricted license or having an SR-22 form filled out by your insurer. It’s important to consider all your options and to know the risks of driving without car insurance. The extra effort might seem worth it in the face of those risks.
Don’t let yourself get into further trouble—make your decisions wisely and be aware of the regulations and laws to keep roads safe for everyone. Keep updated on any changes that come up as they relate to auto insurance, and get insured efficiently and quickly with the help of an experienced agent so that you can minimize potential expenses while maintaining a legal driving status.
Can You Buy a Car Without a Driver's License?
It is possible to buy a car without a driver’s license; however, you still need to meet other requirements. Securing financing may be difficult without a valid driver’s license since the lender will want to check your credit report and driving history. If you can secure financing without a driver’s license, be aware of potential interest rate increases and fees. Additionally, you won't be able to register the vehicle if you don't have the license or permit that your state’s department of motor vehicles needs.
Buying a car without a driver’s license is possible, but it requires careful navigation through legal hoops. At the end of the day, remember that buying a car is a large financial and legal undertaking. Be sure to research all applicable regulations before getting started so as to avoid negative surprises.
Can You Register a Car Without a Driver’s License?
Unlike other driving-related activities, you aren't required to take a test or even show your driver’s license to register your car with the state. Obviously, to drive, you should possess a driver's license, but with regard to vehicle ownership, you are not prevented from participating. An unlicensed driver can be the registered co-owner of a vehicle and take out a no-license auto insurance policy.
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