Auto Insurance for Unlicensed Drivers

Considering the idea that an auto insurance company would actually allow an unlicensed driver to purchase insurance from them would seem a bit ludicrous but it actually does happen. Having a valid driver’s license is, of course, necessary to legally drive an automobile in the United States, but many people do drive without being in possession of a valid license, as many as one in five according to certain statistical informationunlicensed drivers. There are also just as many people who drive without being insured, also. However, many auto insurance agencies will offer auto insurance for unlicensed drivers simply because someone else may be driving their car while they cannot legally do so and insurance is necessary in order to protect the owner of the car and the individual driving the car. In addition, if this unlicensed person is going to drive the car regardless of what the law says, it is better to at least allow them to have insurance for the sake of all those possibly involved in an accident caused by the unlicensed driver.

Insurance Policies For Unlicensed Drivers

Provisions are often included in automobile insurance policies which say that this type of coverage will not provide compensation for damage resulting from an accident which is considered the fault of an unlicensed driver. Although these stipulations are frequently supported and not thought of as being in violation of a public policy which advocates the use of public highways and road by those who are only legally able to utilize them, these stipulations are contrary to the overall idea behind mandatory auto insurance. Making it illegal to drive without being insured is meant to protect those who are innocently involved in a car, truck or motorcycle accident with someone who has no auto insurance. So if someone does not have a valid driver’s license for one reason or another but drives anyway, then according to the mandatory insurance law, he or she should have access to being able to purchase car insurance, at least for the sake of all the blameless, licensed drivers who are legally driving on the roads.

Higher Rates If Your License Is Suspended

In the event that your license is suspended, you should be able to find an automobile insurance company which will let you purchase insurance from them as long as you can provide proof that you are going to get your license back within 30 to 45 days–the usual amount of time for those receiving a license suspension for the first time in their lives. Be aware, however, that most agencies will examine your driving record prior to your license suspension and use this information to calculate your monthly premium payment. Also, they will charge you a much higher rate for not having a valid driver’s license and may even deny you coverage, depending on what insurance company you deal with. It may or may not be worth purchasing if you are expected to have your license returned to you within two months.

Necessary Coverage

Some insurance agencies have “physical damage” policies, which mean you can still carry insurance on your vehicle while unlicensed. Although you may not be driving your car, it can be damaged just by sitting in the street or even in your driveway. This type of insurance is cheaper than regular liability or full-coverage insurance. Also, if you happen to have an outstanding loan on a car, the financial institution holding the loan will probably require you to purchase physical damage insurance for the car, since they have a definite financial interest in it.

If you have a Learner’s Permit

Although a learner’s permit is not considered a valid driver’s license, it is still proof that you are working towards obtaining a driver’s license. When someone has a learner’s permit, they are usually participating in a driver’s education course which will eventually allow them to take the driving test (written and road) and receive a legal license. However, this permit only allows them to legally drive as long as there is a licensed driver riding in the car with them. Insurance companies are aware of these conditions and will readily provide insurance coverage to someone with a learner’s permit, since they understand that this person will usually have a valid license within 45 days.

Consequences of Driving Without a License

If you are caught driving without a valid license, you definitely be given a ticket or even arrested, depending on extenuating circumstances such as warrants or previous criminal history. In addition, your car may be towed if you don’t have anyone to come and drive it back to your house. Plus, if you are driving when you shouldn’t be and are not carrying insurance, the consequences will be extremely costly and your license may be suspended for a longer amount of time.

Even though auto insurance for unlicensed drivers does exist, it is probably wiser to wait until you get your license back before purchasing insurance. It will be cheaper in the long run and may save you further exposure to fines and/or arrest.


  Comments: 10

  1. I would like to insure a vehicle registered to a trust can you? If so how much?

    • Andrew@4AutoInsuranceQuote

      Hi Robert,
      Yes, it’s possible to put insurance on a vehicle registered to a trust, though the insurance policy will need to be also owned by the trust. Most auto insurance companies probably wouldn’t be comfortable doing this, so you will need to check around to find one that will. As far as how much it will cost, it will depend on many of the same factors that affect a personal auto policy, such as type of vehicle, location, and age and driving history of the listed drivers. Somebody will need to be listed as a driver on the vehicle, it can’t just be listed on a trust but without a driver.

  2. Under Common Law a right cannot be converted to a privilage and therefore NO LICENSE IS REQUIRED to any common law citizen NOT conducting commerce on any street or hiighway (ie: Taxi, Omnibus, Limosine, or Tractor-Trailer ). As for manditory liability insurance “Also Unconstitutional” I have no problem with personal responsibility and purchacing liability insurance for to show kindness and care for the rights of other fellow citizens

    • Is there a statute and or vehicle code number. You mentioned common law.
      Also does it basically fall under the rule that a person’s travel shall not be impeded

      • Yes the code and the law is in Black’s Law dictionary. By rights it is illegal for the state to make you get a drivers license if you are not driving for profit. It is called “The right to travel”.

    • Thank you.

  3. Rockford Mobley

    I had an accident my liscense was on an s r 22 already but was suspended due to failure to submit if I wanted my mom and dad excluded from the auto insurance policy.I have custody of my two kids raising them alone I’am freightened by this because I hit a car at a red light and was issued acitation for driving while suspended what will happen to me best and worst case scenario?

    • Andrew@4AutoInsuranceQuote

      Hello Rockford,
      Driving with a suspended license, and causing an accident while doing so, will likely result in a big fine and further suspension of driving privileges. The exact punishment will depend on your state. The worst-case scenario would be that you end up in jail for a short period of time, perhaps 30 to 60 days. You probably don’t need to worry about losing custody of your kids or anything at this point, unless you were also driving while intoxicated with a suspended license. Your best course of action now is to find alternative transportation and wait out your driving license suspension without driving at all. Then, consider taking a defensive driving course and practicing safe driving habits to maintain a clean record.

  4. This article is faulty on a whole lot of levels.

    Let’s start off with this…

    NO where does it state,

    In ANY law,

    That your car CAN be impounded

    Simply for driving without a license…

    Under extenuating circumstances, yes. Ie. Driving with a license which has been suspended.

  5. Nebraska allows a person to buy liability insurance and also be listed as the only driver insured under this policy and that only driver can be unlicensed. This liability policy is fraudulent as the policy will never pay for an unlicensed drivers liability.

Your feedback