Can you get car insurance with a suspended license?

Can I get insurance with a suspended license?

You can get car insurance with a suspended license, but most insurers require a licensed driver to be listed on the policy, and your own driving record will still affect your rates when your license is reinstated.

The rules differ if you're a new customer trying to get insurance on a suspended license versus someone already having insurance. In that case, an insurance company gets a certain amount of time (typically 30 to 90 days) to conduct a background check.If that check reveals a suspended license, the insurer can cancel your policy with as little as 10 days' notice, because the cancellation is based on misrepresentation by the applicant rather than a nonrenewal, which happens at the end of the term.

In most cases, the policy will not be issued in the first place; insurance companies can run motor vehicle records pretty quickly and will find out that your license is suspended. It may be instant or a matter of days.

In some cases, you may be able to apply for a hardship license, which will allow you to drive only for specific tasks, like getting to and from work. You will then be able to get insurance but bear in mind that you'll be seen as a high-risk driver and can expect higher rates.

Can insurance companies tell if your license is suspended?

Yes, insurance companies can tell if your license is suspended by running motor vehicle records checks, which most do at policy renewal. Mid-term checks are rare, but if your renewal reveals a suspension, the insurer will not renew your policy..

The insurance company must send you a notice informing you that your coverage is to be suspended at some future date, typically at least 30 days out. Insurers cannot backdate a cancellation, even if you had lost your license earlier.

Will my insurance cover me if my license is suspended?

Your insurance will not cover you if you drive on a suspended license and your policy contains an exclusionary clause for suspended drivers. Most modern policies require you to report any household driver whose license has been suspended or revoked within 60 days. If you fail to report within that window and an excluded driver causes an accident, the insurer can deny the claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing..

If you’re caught driving with a suspended license, you will face fines and penalties, and will be categorized as a high-risk driver for insurance purposes. Penalties include:

Fines
Vehicle impoundment
Jail time

You will almost certainly face an SR-22 requirement – an insurance company’s guarantee to your state that you have the required insurance coverage in place – when you get your driver’s license back. You will pay much higher car insurance rates because of the offense that triggered the suspension and the SR-22 filing.

The only good news is that you have far more to gain by shopping around for coverage when you go to get insured again.

What happens to your car insurance if your license is suspended?

Nothing will happen immediately to your auto insurance when your license is suspended.

Car insurance follows the vehicle, not the driver. This means your policy stays active when your license is suspended because other licensed drivers may still use the car. Eventually, however, you will either lose coverage at renewal or be excluded from the policy so other household drivers can maintain it.

"The basic rule for personal auto policies is: Insurance follows the car," says Glenn Tippy, president of the Professional Insurance Agents of New Jersey. "You have a contract, and it follows the car. Because people don't have perfect knowledge, insurance companies are constrained in how quickly they can take action and what presumptions they can make."

Eventually, however, you will lose your auto insurance, or if other drivers are on the policy, you will need to be removed to keep the coverage.

Will my car insurance be canceled when my license is suspended?

Your car insurance will not be automatically canceled if your license is suspended. State laws only allow mid-term policy cancellation for a few reasons. Those reasons are typically limited to issues of nonpayment, fraud and misrepresentation.

State regulators don't want insurance companies to cancel an auto policy automatically, even if a driver has lost their license.

If you are in the middle of your policy term, and your policy does not contain an exclusionary clause for driver suspensions, you likely will remain covered until the end of your term.

What happens to my car if I don’t have a license?

If your suspension is short and your next policy renewal will reinstate your license, you may be able to park the car for the duration.

If your suspension is longer, you have some choices to make. Insurance companies calculate rates based on the record of a licensed driver. You can't get an insurance policy if you don’t have a license, or at least an imminent reinstatement.

A registered car is required to have liability insurance in every state except New Hampshire. If you are still making payments on the vehicle, your lender will require you to keep collision and comprehensive coverage on it.

If you are still making car payments, one option is to find an insurance company that will allow you to designate another driver as the primary operator and exclude yourself from coverage. There are restrictions on who that can be; many insurance companies will require that the person listed as the driver be listed on the registration.

If you own your car outright, your other option, if you lack insurance, is to park the car and either turn in the plates or find out if you can register the car as "in storage," in which case you may be able to get a policy that's comprehensive-only. Be aware, however, that this type of policy doesn't meet the legal requirements to drive on the street.

What if I don’t own the car I drive?

If you drive a car owned and insured by someone else, you must inform the insurance company immediately and remove the suspended driver. The policy won't be affected if you let the company know. If you fail to do that, however, there can be consequences.

Take, for example, a young driver who gets a ticket and temporarily loses his license yet neglects to tell his parents. The parents would continue to be covered on the auto insurance policy, even if it contains the above exclusion for known suspended drivers.

"If you don't know, and your kid doesn't tell you, then your 60 days hasn't started," says Tippy. "If there's ambiguity, if there's a lawsuit, it will be construed against the maker of the policy, which is the insurance company."

In other words, the insurance company would have to prove that whoever was driving -- a parent, a neighbor, a friend, a roommate -- knew about the license suspension and still didn't contact the company within 60 days.

How to get car insurance with a suspended license

You can get car insurance with a suspended license by placing a licensed household driver on the policy as the primary operator and removing yourself from driving coverage. Here are the steps to do that.

Find a licensed driver who can be the primary driver on the policy. This is the most complicated part, as it can't be just anyone. Insurance companies have rules about who can be the driver on a policy; it's likely that they'll require it to be someone in your household.
Find an insurance company that will write the policy. If you have a licensed driver in your household who can be listed on the policy, this shouldn't be too hard.
Work to get your license back. To reinstate your license, complete all state-required steps, which may include paying reinstatement fees, fulfilling any court-ordered requirements, and filing an SR-22 through your insurer to prove financial responsibility. Your state DMV will specify which requirements apply to your suspension type.
- Contact your state DMV to get the full list of reinstatement requirements, which may include paying fees, completing a suspension period, and filing an SR-22 with your insurer.
- Once requirements are met, file for reinstatement and notify your insurer so your driving record can be updated on the policy.

What is SR-22 insurance and how does it help reinstate your license?

An SR-22 is not an insurance policy. It is a certificate of financial responsibility that your insurance company files with your state DMV to confirm you carry the minimum required coverage. Most states require an SR-22 after a license suspension triggered by a serious violation such as a DUI, driving without insurance, or accumulating too many points. Filing the SR-22 is one of the steps to getting your license reinstated in those states.

To get an SR-22:

Contact your current insurer or a new carrier willing to file on your behalf.
Pay the SR-22 filing fee, typically between $15 and $50.
The insurer files the form directly with your state DMV.
Maintain the required coverage without a lapse for the full SR-22 period, which most states set at three years.

Letting your coverage lapseWhen your auto insurance coverage ends because you missed a payment or did not renew it on time. A lapse in auto insurance coverage may result in paying higher premiums for a new policy. during the SR-22 period resets the clock and can result in an extended suspension.

FAQ: Insurance with a suspended license

What are the reasons your license may be suspended?

Your license can be suspended for a range of violations, including DUI, driving without insurance, accumulating too many points, failure to pay child support, and failure to appear in court. State laws vary on which offenses trigger suspension and for how long.

Will my car insurance rates increase with a suspended license?

Yes, your car insurance rates will likely increase after a license suspension. While your license is suspended, the listed driver's record determines your policy rate. When you are reinstated, the offense that caused the suspension, such as a DUI or driving without insurance, will be reflected in your record and will raise your rates. You may also face an SR-22 requirement, which further increases costs.