It's possible to get car insurance without a license; however, the process is more complicated than the traditional methods of obtaining auto insurance. Without a driver's license, it's harder for insurance companies to locate driving history records, which means you may be a high-risk driver. As a high-risk driver, you may face difficulty finding an insurer, pay higher rates, and have limited policy options.
Before you buy car insurance without a driver's license, take the time to understand the various policies available to you to ensure you choose the right insurance plan and the best level of coverage for your needs.
Is It Possible to Get Insurance without a License?
Driving without a license is illegal in every state, but you can still purchase vehicle insurance — though it may not be easy. Although buying insurance without a driver's license is not illegal, many insurance companies are cautious of unlicensed drivers, which can make it challenging to find a policy. In some states, companies only issue auto insurance if you include a licensed driver on the policy, which can be troublesome.
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Car Insurance Legal Requirements
Aside from New Hampshire, every state in the U.S. requires drivers to carry auto insurance that provides liability coverage. Virginia drivers can pay an uninsured motorist fee to avoid having to purchase auto insurance.
However, there are occasions when someone without a driving license needs to obtain insurance.
Why Would You Need Insurance without a Driving License?
According to Investopedia, there are a number of situations in which a non-driver may need auto insurance.
Insuring a Vehicle You Do Not Drive
If you have a registered vintage vehicle in your garage, you must insure it, similar to how you insure other assets, such as your home or boat. This insurance coverage is necessary even if you don't have a driver's license; it ensures protection against potential losses on your vintage car.
Getting Insurance for Someone Else to Drive Your Car
If you hire someone, such as a chauffeur, to drive you around in a car you own, you must get auto insurance to cover your chauffeur.
This situation is also applicable if a student driver gets behind the wheel of your vehicle. For instance, if your child has a provisional license and you purchase a car for their use, you need to get insurance to ensure your child has coverage in the event of an accident.
Procuring Insurance for a Learner's Permit
As a student driver, you'll take the wheel from time to time, meaning you'll need an auto insurance plan to cover you in the event of an accident. Since you don't yet have a driver's license, you must insure the vehicle you drive without one.
Getting Insurance after Your License Is Suspended
If your driving license gets suspended, you must obtain SR-22 insurance to reinstate it, which means getting an insurance policy without having a valid license.
How to Get Car Insurance without a License
The process of getting car insurance without a license varies depending on your reason for obtaining it.
Steps to Getting Insurance without a License
There are a few steps you can take to make obtaining an auto insurance policy without a driver's license easier.
If you have a suspended license, many states require that you have SR-22 insurance before allowing you to drive again. Many auto insurance providers offer this kind of policy, but some don't. Do your research to find insurers in your area that offer SR-22 as a no-license insurance policy. Bear in mind that SR-22 insurance may be costly.
If you own a vehicle but don't drive it, you can get an insurance policy that lists another person as the primary driver. As long as the primary driver has a valid driver's license, you don't need to have one yourself.
It can be hard to secure auto insurance for a vehicle in your name if you don't have a valid driver's license. Your insurance provider may regard you as a high-risk policyholder and want to ensure that you won't be driving. In this case, you should exclude yourself as a driver on the policy. Basically, this is the opposite of naming yourself as the primary driver — it states that the insurer won't cover you if you drive your vehicle.
The Role of Insurance Providers in Non-License Policies
Not all insurance providers offer coverage for unlicensed drivers in all circumstances, so do your research. Connect with customer service representatives and policy writers to discuss what policies they offer and whether you can customize them.
Potential Drawbacks of Getting Insurance without a License
While searching for an insurance company that issues insurance policies to those without a license, prepare to face some potential challenges.
Trouble Finding an Insurer
Since not all insurance providers offer non-license policies, you may have to search harder to find one that does.
Facing Higher Premiums
Since many insurance companies see unlicensed drivers as a significant risk, you can expect higher premiums.
Limited Policy Options
In addition to higher premiums, unlicensed drivers have limited policy options. For example, they may cover only the minimum state requirements for liability coverage and offer only select add-on options like personal injury protection.
State-Specific Rules for Car Insurance without a License
Different states sometimes have their own rules for purchasing car insurance without a license. For example, in Florida, you can use a state identification card or passport to prove who you are to your insurance policy issuer, and in New York, you can get insurance without a license by being listed as an excluded driver.
Alternatives to Getting Your Own Insurance
There are a couple of alternatives to getting your own insurance that can save you money.
Named Driver Insurance Policies
Named driver insurance policies provide coverage only to people specifically named on the policy. With named driver insurance, the insurer won't cover an unnamed driver who gets into an accident.
Surety Bonds
In some states, unlicensed drivers can purchase a surety bond rather than an unlicensed driver insurance policy. You purchase a surety bond from a third party. It serves as a guarantee that the third party will pay for any damage if your car gets into an accident.
Important Takeaways
In circumstances where an unlicensed individual must have auto insurance, named driver insurance policies and surety bonds can help to avoid hefty premiums. In other situations, uninsured drivers have no choice but to select from limited insurance coverage options and pay high premiums.
Idalia Garcia is a licensed insurance agent with extensive knowledge of various insurance lines. She has more than 12 years of experience in auto insurance and 10 years in property insurance.
