On certain occasions, one must not have a driver’s license before he/she can buy a car. However, one of the information required during your inquiry for a car insurance policy is your driver’s license number. The insurers need the number to check your driving history and assess if you are a high-risk driver.
A lack of license puts the insurer at a disadvantage if you get insurance with them. So, they would rather not, making it quite tiresome for you to find coverage. It may sound odd and unnecessary for those that do not have a license to drive to get insurance.
Despite how it may look, there are some situations whereby getting a car insurance policy without a license is a worthy idea. There are also scenarios where you may need to have car insurance even with no car of your own. Just know well ahead of time that the process will be a bit complicated.
When Car Insurance without a License is Advisable and Smart
If a car accident occurs and results in damages, hospitalization, or even an individual’s death, the financial responsibilities that follow may be more than you can cover on your own. The probability of that happening makes an insurance policy of utmost importance and a legal requirement. Below are cases where having car insurance in the absence of a license is required.
- You have a vehicle that you do not drive: Now, you may have bought the car as a gift for a friend or a teenage child, but you are yet to deliver the gift. Car insurance is a great way to protect your interest if anything happens to the vehicle before giving it to the recipient. You may have a car, no license, and another family member uses it more often. In that case, it is a good thing that the car is insured.
- You have a chauffeur (personal driver): When you get driven to and from all your appointments, you may not need a license even though the car is technically yours. This situation could be because you cannot renew the license permit due to health conditions, unforeseen circumstances. It may also be that you do not want to drive, or you have lost the license due to advancement in age. Despite not having one, the right insurance policy will cover damages due to accidents and injuries.
- You have a vintage vehicle: If you are a collector of vintage cars, or you happen to have a high-end registered vehicle in your garage that you have no plans of driving, you can insure it against theft and potential loss. The insurance coverage also prevents you from being considered high risk if you need it later on.
- Your license got suspended: Poor driving record such as DUI/DWI could lead to your driving license suspension. When this happens, and you wish to get it back, the court might require you to provide an SR-22 OR FR-44. This SR-22 insurance is proof that you have the minimum vehicle insurance that your state requires. Your car insurer may consider you high risk, which would lead to a high premium.
- You are a student driver or a teenager with a learner’s permit: As a student driver, driving a car without a license and insurance could get you into trouble. If you are a parent or guardian and a student driver uses your car to learn how to drive, you will need to get the vehicle insured. Also, adding the teenager to the insurance policy as a provisional driver is recommended. However, if the car has been purchased for the student driver, getting individual insurance is necessary. It is also more straightforward when a provisional license is available. If the teen is underaged, the guardian still needs to co-sign the policy even if this adult has no permit.
- You would also need car insurance in a new locality when a different region or country issued your driver’s license.
Getting Car Insurance without a License
Most insurers will not go into any contract with people that have no license but need car insurance. Their hesitance does not make it impossible for you to get the policy. You can check online or consider smaller insurance companies and agencies for a suitable package. But it will always be easier to get insurance with a license than without one.
Some of the approaches you could take to get your car insured without a license include:
Have a licensed primary driver (with yourself as an excluded driver)
This strategy is the easiest way to get a policy approved and your vehicle covered. It means you need to list someone as a principal or primary driver on the insurance policy. This primary driver could be a family member, a roommate, or anyone who lives at your address. The individual, preferably, is related to you.
Your listing someone as the principal driver assures the insurer that you have no driving plans in the absence of a license. It will thereby save you from high premiums. Adding yourself as an excluded driver gives the insurer more reassurance that they would not be liable for any accident when you drive, like hitting someone without insurance. But this makes you responsible, so it is best if the primary driver will be taking you wherever you go.
The insurance company will also charge you based on the primary driver’s history, so get a person with a good driving record.
Get a co-owner with a license
You could also get your vehicle insured if you add a licensed driver as a co-owner. You may list the primary driver as the co-owner. In this case, he/she does not have to live with you. Ensure that the listed owner is someone you can trust so that personal conflicts do not further complicate your issues.
Get a parked car policy
A parked car or storage policy covers a vehicle against theft, fire, water damage, and falling objects. It is the right approach if no one has plans of using the car often. This policy protects the vehicle from accidents that occur when it is parked. So, you can get it for a spoilt vehicle still undergoing repairs or a vintage one. The policy is cheaper compared to full car insurance, and it does not require a license.
Shop around for SR-22 insurance
Having a suspended license prohibits you from driving legally, but it does not stop you from having a policy for your car. An insurance policy is needed to get your license back after suspension. This policy is often in the form of an SR-22 document which proves that you have the minimum insurance coverage mandated by your state.
It is easier to get an SR-22 if you have existing insurance. The insurer would provide you with the document, and you can submit to get your license. But if you do not have coverage currently, you can look for a new insurer that would agree to issue the document to you. The suspended license causes the insurer to view you as high-risk and charge high premium rates.
Whether you own a car or not, as long as you will be driving one, getting car insurance is vital. You could do this by getting non-owner car insurance, which has its limitations. A better way is to ask someone else to be the primary driver. This second strategy works if you happen to have a car and not have a license.
Insurance coverage helps you avoid high-risk insurance rates that might occur if getting a license is impossible. You have peace, and it protects you from the high financial responsibility that theft and accidents could present.