When you don’t have a license, do you need car insurance? Having a driving license isn’t necessary for purchasing a car legally. It is possible that you will buy a car as a gift and will need to insure it in the meantime.
For one thing, you might lose your license at any time for any number of reasons, but you still have a car registered in your name. Having car insurance even when you don’t have a license protects your investment if your car is damaged or stolen.
Insurance isn’t easy to buy without a driver’s license number. This number is used by insurers to check your driving history and assess whether you’re a high-risk driver or not. In addition, they worry that they’ll be stuck paying accident bills if you drive without a license.
As a result of this additional risk, you might have to look beyond the most popular insurance companies. It is possible that a non-standard insurance company might be willing to accept you as a client.
What is the need for car insurance if you do not have a license?
Below are a few cases in which you may need car insurance even if you don’t have a driver’s license.
- It’s necessary to hire a driver
Possibly, your license cannot be renewed due to health issues. Yet, you still want to keep the car’s title in your name while a driver drives you to your destination.
If you get the right policy, even if another person will be driving, the insurance will cover accidents and injuries. The reason for this is that insurance policies follow the car, not the driver. If you have a household member drive you around, that may not require insurance.
Insurance lapses should be avoided
You should avoid lapses in your insurance policy, as these can result in higher premiums when you decide to purchase insurance again.
If you are the parent of a teen driver
If you are the parent of a teen driver, you might buy a car for your teen, but you might keep legal control until your child reaches a certain age.
You got your license suspended or revoked:
The state or court might require you to file an SR-22 or FR-44 to get your license back. Both of these documents prove that you have the necessary insurance coverage as per state regulations.
In the case that your license was revoked, you might still want a “parked car” insurance policy because a car is an expensive investment. You should protect it when it’s in your care.
You can insure a collector or high-end car against theft:
If you own a collector or high-end car, you can insure it against theft.
Provisional license:
Provisional licenses are important and common in many states. In some states, even adults must have a learner’s permit before they can apply for a license.
Many insurers will insure your vehicle if you have a provisional license and are in the process of obtaining a license.
Please note:
Every state requires you to prove you can pay for damages caused by an accident you caused in your car. It’s because accidents are so expensive.
The average cost of a two-car fender bender is $9,000. And what if there are injuries? If there are injuries, the average cost per injured person amounts to $23,000. If anyone dies, the average cost is $1.66 million.
Is it Possible to Get Car Insurance Without a License?
The following are the most common ways to acquire auto insurance without a driver’s license:
Provide the name and license number of the primary driver
Adding a person to your policy is possible if they have a valid license, live at your address, and are a relative. If necessary, you can also share the policy with a licensed roommate.
Some insurance providers will give you car insurance if you name the licensed individual as the primary driver. Some insurance providers may require you to list yourself as an excluded driver. This way, in case of an accident behind the wheel, the insurance company is not responsible.
Usually, if you do not live with them and they aren’t related to you, you can’t add them to your policy.
If you have family members who live at different addresses, it is best to call your insurer to find out what is allowed in this regard
Take out a Parked Car Insurance Policy
Keeping only comprehensive coverage could allow you to drop liability and collision coverage when your car is in a garage. Basically, this type of insurance covers your car against theft, fire, and many other risks that may occur when it is in storage.
It may not be possible for you to make this change if you have still been financing your car. Lenders may ask you to carry certain types of coverages.
Having a licensed driver as a co-owner
It’s a good idea to add someone with a license to your title if your vehicle is paid off.
If you don’t do that, most lenders will hold the title until the loan is completely repaid.
There may be a requirement for you to obtain their permission before adding a co-owner to the title.
Even if your lender allows this, some insurance companies will only insure the loan holder.
In which companies can you buy auto insurance without a license?
Five national insurance companies provided customer service. As far as I know, State Farm and Liberty Mutual require a valid driver’s license to get car insurance in various scenarios. However, both Progressive and Nationwide have some options for you as well.
The company said they could provide us with car insurance for an aging parent without a license if another person was listed as an additional driver. I contacted Allstate, and they instructed me to coordinate with local agents.
However, they told us that they could not provide us insurance coverage for a car with only a provisional license.
Advice:
It would be best if you contacted insurers directly to find out if there was any insurance available to you in your situation. You won’t be able to get accurate online quotes for insurance if you do not have your driver’s license number.
In case you can’t find insurance with national companies, try local or smaller agencies.
It is possible that they will have more flexibility than traditional insurers and will be more willing to consider high-risk drivers.
Buy a car without a license
If you soon buy a car, will you need car insurance? The following should be done before going to a car dealership if you don’t have a license yet:
- Find out from your local motor vehicles agency what documents you’ll need to purchase a car without a license.
- If you are looking for insurance for your car, speak to an auto insurance company to find out what they require and ensure you will get it.
- It would be best to contact your local dealership and tell them that you wish to purchase a car without a license. They may assign you to the sales manager to assist you with your purchase.
The FAQ
What is the best car insurance policy for you? Do you know what happens when you don’t have car insurance?
Liability insurance is required in every state, except Vermont and New Hampshire. Minimum coverage only covers the other driver’s vehicle, but most drivers will require additional coverage for themselves, their vehicles, and passengers. Discuss your needs with your insurance agent.
You and your assets are not protected if you don’t have car insurance. The other driver may sue you to cover their medical expenses, and you might be unable to afford car repairs or medical bills. In addition to being in legal trouble, most states require all drivers to have liability insurance.
Would you be able to go without car insurance for a long period of time?
You can go without car insurance as long as you don’t drive. Without proof of insurance, some states may not allow you to renew your license or vehicle.