There are more than 289 million vehicles registered across the United States. If you are fortunate enough to have your own car, this can offer you a lot of personal freedom. You can use this to get to work, run daily errands, visit loved ones, or go on vacation.
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However, you will need more than just a car to do this — you will also need insurance. When you first apply for car insurance, your provider will want to know a lot about your driving history. This includes taking your license details.
So what if you are a first-time driver or your license has lapsed? Can you get car insurance without a license? Read on to find out more!
Why Is Car Insurance So Important?
Every year more than 6 million car accidents take place in America. Even if you are not seriously injured in one of these accidents, they can still cost you dearly.
If your car has been damaged during the accident, you will have to cover the cost of this. You may also have to pay for property damage that the accident causes.
In addition, if you are liable for an accident, you could also have to pay out large amounts of compensation to the other drivers.
Your car insurance policy can provide valuable financial protection if you are involved in an accident. This can help to cover the cost of:
- Vehicle repairs
- Replacing your car
- Replacing the contents of your car
- Compensation and legal expenses
Of course, car accidents are not the only thing that can damage your car. Theft and natural disasters could also leave you seriously out of pocket. Your insurance policy will cover you for these as well.
In fact, car insurance is so important that it is a legal requirement in 49 out of the 50 American states. The only exception is New Hampshire. There you can drive without insurance if you can financially cover the cost of potential road-related damages.
If you are caught driving without meeting the minimum insurance requirements, anywhere else you could face:
- Fines
- A license suspension
- Jail time
So driving without insurance is not worth the risk!
What Type of Insurance Do You Need?
There is a legal minimum insurance requirement that all policy providers must supply when it comes to coverage. This includes:
- $25,000 worth of bodily injury liability coverage per policyholder
- $50,000 worth of bodily injury liability coverage per car accident
- $25,000 worth of property damage liability coverage
However, you can get as much additional coverage as you like. You can also increase the amount of coverage that you have for bodily injury and property damage liability.
Extra coverage will make your annual or monthly insurance premiums more expensive. But it will also give you more opportunities to claim if something does happen to your car.
Some types of car insurance coverage to ask about include:
- Additional liability insurance coverage
- Uninsured motorist coverage
- Accident and collision coverage
- Personal injury protection
- Contents insurance
- Additional driver policies
- Flood damage coverage
When looking for car insurance coverage, it is always worth checking the insurance policies that you already have in place. This could save you some money.
For example, some car insurance providers offer medical payment coverage. If you already have comprehensive medical insurance, you may not need to sign up for this.
What Information Does a Car Insurance Company Need?
When shopping for a car insurance policy, it is a good idea to collect quotes from different providers. This helps you compare the prices on offer and ensures that you come away with the coverage you need.
However, to give you an accurate quote, each insurance provider will need an understanding of your driving experience. They use this to calculate the risk of you needing to make a claim. Drivers who are likely to make an insurance claim are viewed as “high risk” by insurance companies, and their premiums reflect this.
For example, if you live in an area with a high crime rate, your insurance premiums will be higher. Younger drivers are also more likely to be involved in car accidents. Because of this, car insurance for 16-year-olds and car insurance for 18-year-olds can be very expensive.
Insurance providers ask for certain information to get a picture of your driving history and calculate an accurate quote. This usually includes:
- Your name, address, age, and marital status
- The amount of coverage that you are looking for
- The type of vehicle that you would like to insure (including its registration, age, and mileage)
- The current value of your car
- Your driving license information and driving record
- How often you plan on using your car
- Your car insurance history (including records of any claims that you have made)
- Your credit score
This information helps your car insurance provider build a picture of you as a driver and how much they will need to pay out on a successful claim.
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Why Are Drivers’ Licenses Important to Car Insurance Providers?
Specific statistics can tell an insurance provider about the likelihood of you being involved in an accident. However, your driving history is the most important information to share with them. They will use your car registration and license to check your driving history.
All states also require you to pass a road test before receiving your driver’s license. So this tells insurers that you have met the state requirements for safe driving.
Your license will provide information about driving penalties that you have faced. For example, it will show if you have received any points for speeding or driving dangerously. These factors increase your risk of being involved in a crash and therefore increase your insurance premiums.
Of course, some driving penalties involve revoking or suspending your license. Again, this tells insurance companies a lotabout your driving style!
So, do you need a driver’s license to take out a car insurance policy? Let’s take a closer look.
Can You Get Car Insurance without a License?
There are more than 228 million people in America with a valid driver’s license. Your driver’s license proves that you have passed your test. Some larger vehicles require specialist training and additional licenses to drive.
However, not all car owners and users have a license. For example, if you are learning to drive, you won’t have a license in place already.
Fortunately, you can take out a car insurance policy without a license. There is no law in place to stop you from doing this.
That said, it can be more difficult to find an insurance provider who will let you take out an insurance policy when you don’t have a license. Knowing your way around this will ensure that you get the coverage you need.
With that in mind, let’s look at how to insure a car when you don’t have a license.
Look for Local or Regional Insurance Companies
More than 1.1 million insurance brokers work across the United States. This can make finding the right insurer for you feel overwhelming. However, when it comes to looking for car insurance with no license, this can work in your favor.
National and global insurance companies are unlikely to offer coverage for no license car insurance. This is mainly because they are more established and can afford to turn down insurance applications.
However, companies that operate on a regional or local basis will be more likely to offer you coverage. So this is an excellent place to start. You can even do some research online to determine which companies in your area offer this type of coverage.
If you are learning to drive, you may even be able to find companies that specialize in getting car insurance for the first time.
List Yourself as an Excluded Driver
If you are looking for car insurance with no license required, listing yourself as an excluded driver is one of the easiest ways to do this.
You will need a licensed driver to list as the primary policyholder. The insurance provider will use the licensed driver’s driving history and vehicle history to calculate the cost of your insurance.
Your name will appear on the policy as an excluded driver. This means that you may own the vehicle, but the insurer does not cover you to drive it.
This is a good option for older people or people with medical conditions who need assistance getting around. This allows family members or carers to drive their vehicles on their behalf.
However, it is worth noting that the insurance policy will not cover excluded drivers. If you are involved in an accident while driving as an excluded driver, you will have to cover the cost of any damages yourself.
Law enforcement will also view this as you driving without insurance. Depending on where you are driving, they may fine you and impound your car if you are pulled over.
Add a Licensed Driver to Your Car’s Registration
Some insurers will not insure a car if an unlicensed driver solely owns it. After all, if you have not passed your driving test yet, the risk of you being involved in an accident is much higher.
It can be easier to get insurance if a licensed driver also owns the car. You can organize this by adding a driver to the car’s registration. You do not have to give up ownership of the car yourself and can simply list them as co-owner.
To change your vehicle registration, simply visit your local Department of Motor Vehicles. They will have the necessary forms for you to fill out to add a licensed driver to your vehicle registration. You may need to pay a small fee to do this.
Of course, you will need to list someone that you know as the co-owner and be able to supply their license details. Family members and close friends can work well as vehicle co-owners.
Get Parked Car Insurance
If you are not planning to use your car, it is still a good idea to get insurance. After all, accidents can still happen!
It is easy for any car owner (including one with no license) to get parked car insurance coverage. Some providers also call this stored car insurance or comprehensive-only coverage.
This insurance covers vehicles while they are in storage and covers damage caused by:
- Fires
- Flooding and other extra weather
- Theft
- Vandalism
- Wild animals or rodents
- Falling objects
Parked car insurance tends to be much cheaper than car insurance for the road. It doesn’t include liability insurance based on the assumption that you cannot cause an accident if you aren’t driving!
This can be an easy way for an unlicensed driver to build up a no-claims record with their insurance company. However, it is worth noting that parked car insurance does not meet the legal requirements for driving.
If you take out a car with parked car insurance, this will not cover damage caused by accidents on the road. On top of this, if the police stop you, they will view this as driving without insurance. So you could face severe penalties.
Become a Second Driver on a Policy
You can probably tell by now that it can be much easier to get an insurance policy if you team up with a licensed driver. Their driving record will speak for you and can bring your insurance premiums right down.
In fact, some insurance providers will let licensed drivers add you to their policies for short periods. This is known as second driver insurance and is usually a temporary arrangement.
Second driver insurance policies also allow you to drive cars that you do not own.
For example, if you are learning to drive, your parents might temporarily insure you on the family car. Or if you are staying with an elderly relative, they might insure you to help them get around.
For this to work, you have to know an insured driver who is willing to add you to their policy and let you use their car. This is a popular option in families or work settings requiring employees to drive.
Adding a second unlicensed driver to an insurance policy will be more expensive. Because of this, it might be worth offering to split the insurance costs with the policy owner, especially if you are using their car!
Can You Get Car Insurance with a Suspended License?
Having a suspended or revoked license is different from never having a license. This is usually a penalty for displaying dangerous driving while on the road. This can include:
- Driving under the influence
- Exceeding the speed limit
- Driving without insurance
Your license may be revoked after one incident, or you can accumulate driving points over time. Once you have a certain number of these, the Department of Motor Vehicles will suspend or fully revoke your license.
If your license has been suspended, you must fill out an SR-22 insurance form before getting insured. This form requires details of your license suspension so that the insurer can assess your risk of needing to claim in the future.
SR-22 forms also set a higher minimum requirement for your insurance. This means that your premiums will be more expensive. An insurer may deem you too risky to insure and deny you coverage in some cases.
If your license has recently been suspended, you can save money on your insurance by switching to a parked car or non-owner policy. This means that your coverage won’t lapse, but you also won’t have to pay for driving privileges that you aren’t using.
When Should You Insure a Car That You Can’t Drive?
As you can see, it isn’t easy to get car insurance that will cover you to drive if you do not have a license. However, there are many circumstances when you should make the most of insurance that doesn’t require a license.
You should organize car insurance if you:
- Are learning to drive and only have a learner’s permit
- Own a car that is currently in storage or is parked 24/7
- Own a car for a short period with the intention of selling it
- Want to avoid having a lapse in your insurance coverage
- Are unable to drive for health reasons but own a car that family members or caregivers drive for you
Car insurance can also be costly. If you have a family member who cannot afford a car or to cover the cost of their insurance, you could insure them on your car.
You can still take out insurance and list them as the driver without a license. However, you will have to list yourself as an excluded driver in that case and must not take the car out yourself.
Can You Buy a Car without a Driver’s License?
If you are looking for insurance, you probably already own a car. If not, you will not have any trouble buying a car without a driver’s license.
If you can finance your car, you can buy one whether you have a license or not.
Alternatively, if you are looking for a car loan, most banks will give these to people without driver’s licenses. Car dealerships can be less willing to finance a car purchase if you do not have a valid license. So you will have more success with a local bank.
Of course, if you are planning on buying a car, you may wish to test drive a model first and will need to drive it home from the dealership. This is where not having a license can pose a problem.
Dealers will not let you test drive a car yourself if you don’t have a license. Instead, they may let you take the car out with one of their agents driving it. This can give you a feel for the car on the road.
When you take your car home, you will need an insured and licensed driver to collect it with you—a dealer will not let an unlicensed driver drive one of their cars off the lot.
If you are struggling to find someone to drive your car, the dealer may be able to help you. In addition, they can help you organize towing transportation to get your car home for you.
Can You Register a Car without a Driver’s License?
Once you have bought a car, you need to register it with your local Department for Motor Vehicles. This updates the record on who legally owns a car and where they live.
To register your car, you will need to fill out an ownership form with the DMV and proof of purchase or ownership. In most states, you also have to pay a fee and provide proof of insurance.
You do not need to have a driver’s license to register your car. At this stage, you can provide parked insurance with your registration. If your insurance policy changes, you will need to update this information with the DMV.
Get Help Finding Car Insurance Quotes Today
If you were wondering, “Can you get car insurance without a license?” the answer is you absolutely can! You just need to plan the type of coverage you ask for and make sure that you’re looking in the right places.
Need help finding car insurance for your next policy? Then check out Insurance Tales today.
We specialize in getting quick online quotes from several insurance providers in no time and would be happy to help you! So what are you waiting for? Get in touch now to start your insurance hunt the right way!
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