Who needs Unlicensed Driver Insurance?

Who needs Unlicensed Driver Insurance

Insurance coverage that is designed for those without a driver’s license seems counter-intuitive. But if you’ve found your way here, chances are you might fit into one of the few scenarios where unlicensed driver’s insurance is the answer you’ve been looking for.

To put it simply, unlicensed driver’s insurance is meant for those who own a vehicle but don’t have a valid driver’s license. 

Let’s make one thing very clear: If you do not have a driver’s license, you should not be driving any vehicle. Not only is it illegal, but the fines can range from hundreds of dollars to thousands. The only exception to this rule is if you have a learner’s permit,  which we will discuss shortly.

It is extremely important to have vehicle insurance. Any owned vehicle that is driven must (by law) have a valid insurance policy attached to it. This is where unlicensed driver’s insurance comes into play.

Let’s break down some of the use cases.

#1 – Those With Learner’s Permits

Congratulations on your journey to a valid driver’s license. Unfortunately, you’re not quite there yet. A learner’s permit is not technically a driver’s license yet, but it’s certainly on its way. 

While you work toward becoming a full-fledged licensee, you need to have insurance on your vehicle. If you own that vehicle, then your name needs to be on the insurance policy. 

When speaking with insurance providers, explain this situation and they will often be able to insure you using your provisional license from the Department of Motor Vehicles (DMV) or a government ID. 

If you are fortunate enough to live with another individual who also happens to be an insured driver, a simpler alternative would be to temporarily get insured under their policy. This is often a much cheaper alternative as well. 

#2 – If Your License Has Expired

The two reasons a license becomes invalid are that it expires, or it has been suspended. If your license has expired and you don’t plan on renewing it, perhaps because of your age, your vehicle still needs coverage. This is especially true if you plan on having friends or family drive your vehicle.

This can still be a difficult policy to obtain because a valid license is usually the first thing an insurance provider will ask for. The simplest solution is to list another licensed driver as the primary driver. 

By using their valid driver’s license number, you can request a quote. If you’d like, you can even then add yourself as an excluded driver, meaning the insurance company is told that you are prohibited from driving the vehicle in question.

Your primary driver should be someone you live with. Otherwise, the insurance provider might have hesitation when naming them on the policy. A workaround for this issue would be to add the individual (who doesn’t live at your address) to your vehicle’s title. 

#3 – If Your License Has Been Suspended

This is a difficult situation for a wide variety of reasons, namely because you still need to get around despite not having a license. Your vehicle will still need to be insured while your license is suspended. 

If your policy is scheduled to lapse during your suspension, you need to figure out a plan B quickly. Any lapse in your vehicle’s coverage becomes a ding in your driving history. That could be a recipe for a massive insurance premium bump. 

This whole situation becomes even more complicated if the reason your license was suspended was that your vehicle wasn’t insured. Now there is a frustrating situation because that vehicle still needs to be insured and doing so without an active license can seem even more complicated. 

The good news is most auto insurers are familiar with this situation and can typically work with you to get or renew your coverage, despite the suspension.

There is a chance you’ll have to receive a unique form called an SR-22. That will let the responsible parties know that you possess the state minimum required amount of auto insurance. You can compare free SR22 quotes online to make sure you have the correct insurance coverage.

#4 – If You Want to Better Protect a Vintage Vehicle

If you own a vehicle you won’t be driving, it still needs insurance if others are driving it. It’s perfectly legal to not get insurance if no one will be driving it. However, many collectors without a valid driver’s license know that it can still be important to get that vehicle insured should an accident occur while it is stationary or stolen. 

Auto insurers were forward-thinking on this use case as many offer an antique auto insurance option. In addition, you could also look into parked car insurance or comprehensive-only coverage.

Where can you get unlicensed driver’s insurance?

As we explained above, most of these insurance policies aren’t actually that special. It’s how you go about getting these policies that require a bit of extra knowledge. Because of this, you should be able to reach out to the most preferred vehicle insurance providers and speak to a representative to find a policy that works best for you. 

An insurance agency will also be able to compare different providers to find your perfect fit and can help you calculate your car insurance premium.

It is critically important that you tell the insurance provider the truth throughout the process. If you are caught lying, your policy will likely be canceled right away and any sort of coverage will be denied outright. 

Maintaining a clean and safe driving record goes a long way as well.

Important Reminders

Just for emphasis and to ensure we’re clear about any legal ramifications you might face, let’s restate a couple of key points.

  • If you do not have a valid driver’s license (or learners permit) you should not drive with or without insurance. It is illegal.
  • If you select an unlicensed driver’s insurance plan, you still cannot drive that vehicle. You must have a license to get behind the wheel and back on the road. 
  • Do not lie to an insurance provider. If you are caught in a lie you will be denied and likely lose any existing coverage.

Any vehicle that is driven must have insurance, but not every vehicle owner needs a driver’s license. That’s where unlicensed driver insurance comes into play.