A valid driver’s license is an essential document when applying for car insurance. With the permit, insurance companies can access and assess your driving history. The companies use an applicant’s driving record to predict their risk-factor, hence determining how much to charge for their coverage. But, can you get car insurance without a license?
The idea of securing car insurance without a license seems to go against logic. Why would you require auto insurance if you cannot legally drive a vehicle? Although there are excellent reasons why an unlicensed driver might consider buying a liability policy, obtaining one without a valid driver’s license can be tricky. There are a few ways to get an auto policy with no license.
Even with the few options, the most reliable way to obtain car insurance with no license is to buy a policy, then eliminating yourself from the listed drivers. The move will ensure the vehicle and list of drivers on that policy get the necessary protection. Finding an insurer that will sell you the auto insurance policy could be another challenge since most companies are wary of providing coverage to a driver without a license.
Securing Car Insurance for Unlicensed Drivers
There is no legal requirement to have a license when buying vehicle insurance. Even so, most national insurance firms are likely to turn you away without a driver’s license. One of the best avenues is to focus on regional and small companies. Alternatively, consider using a local independent agent who is familiar with insurance providers that sell policies to unlicensed drivers. You may also need to contact insurers directly because you must give a valid license number when buying the policy online.
The following three methods should answer the question; can you get car insurance without a license?
1. Excluding Yourself as a Listed Driver
An excellent hack to obtaining car insurance without a license is purchasing a policy that eliminates you from the listed drivers. Doing so will reduce risks for the auto insurance provider since you and the vehicle are not under protection in case you drive illegally and involve yourself in an accident. Not that if the police pull you over, they are going to treat you as though you were driving with no insurance, which will mean impounding your car and paying fines.
Since the auto policy restricts you from operating the car, it is crucial to list someone else as the primary driver on the insurance. The individual could be anyone with greater access to the vehicle, such as a family member, spouse, or roommate.
Today, it is standard for the primary driver on auto insurance to be different from the vehicle owner and policyholder. For instance, this is a typical case for an individual with health complications or elderly drivers who cannot otherwise drive the car. Situations such as this require listing a caretaker as the primary driver on the car insurance policy of the patient.
Keep in mind that auto insurance providers will use motor vehicle records or MVRs on top of other factors to set your policy rates. For that reason, you will want to take time deciding whom to list as the primary driver on the account. You can expect higher premiums if you choose someone the insurer considers a high-risk driver, because of either age or their driving record.
2. Parked Auto Insurance
Cars in storage that will not be in use can sustain potential damages. One option for protecting this car involves buying parked vehicle insurance, or comprehensive-only policy. The policies provide comprehensive protection covering damages that may result during the period the vehicle is in storage without any use. Some of the dangers the plan would cover include:
- Flooding
- Vandalism
- Fire
- Theft
- Falling objects
Auto insurers are unlikely to ask for your driver’s license when buying insurance because you will not be driving the car in storage. Furthermore, getting this kind of policy is an excellent option since it is more affordable than regular auto insurance policies, which come with liability coverage.
3. Using Co-ownership to Obtain Car Insurance
If insurers are reluctant to sell you a policy because you are an unlicensed driver, changing the registration of your vehicle for co-ownership with a licensed driver might be a good ideal. Doing this makes it easy to buy a policy for the car you are trying to insure since vehicle ownership is a regular requirement. Changing auto registration to reflect changes in ownership is as simple as visiting the local DMV to fill forms and paying the necessary fee.
Non-Owned Auto Insurance
When running a business, renting and borrowing cars can save money if you cannot afford to buy a company car. The venture can also bring other risks. In the event those vehicles cause damages, your business will be liable for the payments, even if it does not own them, which brings us to non owned auto insurance. The policies often help pay for damage that cars your business uses but does not own, might cause.
Entrepreneurs must cover their businesses’ liabilities for accidents occurring when using leased cars, employee-owned vehicles, and rentals to run company errands. Non-owner car insurance policies are essential in covering gaps in regular commercial auto insurance. The latter does not cover claims when accidents involve:
- An employee on a business errand in a personal car
- A luxury vehicle you hire for an important client
- An auto you rent for the business sales team
Getting non-owned auto insurance can help protect your investments in these exceptional driving circumstances.
What is Non-Owned Auto Insurance?
Non-owner auto protection is a liability policy, which small company owners secure when relying on automobiles belonging to someone else for their business errands. Affording a delivery truck, company car, or specialty auto is not one of the luxuries most small businesses have in their budgets. The activities often rely on delivery rental vans or employees using personal vehicles throughout the day. Even with a company car, businesses might still need extra vehicles for their busy season.
In the event of an accident with car rentals or employee’s vehicles running errands for the company, the business and not the employee will be responsible for an auto repair, medical, and legal bills. Since the bills can add up, having safety precautions in place is an added advantage.
What Non-Owner Auto Insurance Covers
During an accident, non-owner auto-insurance will cater to the businesses’ legal expenses, as well as the damages you cause third parties, which may include:
- Damaged third party property
- Defense costs when a third party sues an employee in a covered accident
- Medical bills for third party injuries
- Auto repairs for third party vehicles
- Any other actions of your employee during the incident
What Non-Owner Auto Insurance Does Not Cover
Non-owner auto insurance has limitations in coverage, about which you should know.
- It does not provide cover or accidents involving cars belonging to the business. You need to get a commercial auto policy for that.
- Physical damage to the auto in use at the time of the accident
- Damages to property under transportation or those in your care
The policy only covers business-related errands, which excludes accidents happening during:
- Commuting
- Running personal errands
When Do You Need Non-Owner Car Insurance?
Businesses will need this type of insurance policy if they:
- Hire cars during business trips
- Provide car allowance to staff members for using personal autos for work
- Allow employees to drive private vehicles when picking up supplies
- Borrow vehicles from associates during peak seasons
If businesses regularly use vehicles they do not own; they are likely to benefit from non-owned auto insurance.
How To Get Non-Owned Auto Insurance
It is common for businesses to include non-owner car coverage when applying for their general liability insurance. You can also purchase the protection plan separately, though sometimes bundling up policies often lowers insurance premiums. To leverage this option, you will want to ensure that you are checking boxes and answering questions concerning non-owner vehicle insurance when applying for a general liability policy.
Can You Drive Without Insurance
Another question car owners frequently ask is; “can you drive without insurance?” To drive legally in any state, you must prove financial responsibility for liability or damages in case of an accident. Most states require auto insurance as a mandatory proof of that accountability. Since all states have some kind regulations on financial responsibility for drivers, those that don’t need liability insurance will still require you to show proof of enough assets to pay medical bills, damages, and more in the event of an accident.
Without proof of assets, you might face legal charges, such as suspended car registration and driver’s license. The penalties can get worse in case of an accident, with your responsibilities possibly wiping out your financial future. While it is common for some people to avoid getting auto policies, please note that car insurance exists to safeguard your assets.
Lenders often ask for collision and comprehensive coverage as part of the loan contract, when financing your car. The lender requires insurance to protect the automobile, which is their financial asset.
Besides, you will also want to protect yourself and your property by securing auto coverage. Consumer groups and the insurance industry, in general, recommend at least $100,000 for bodily injury protection per individual, with at a minimum of $300,000 for every accident, because accidents are often far more costly than the minimum limits that most states allow. Getting auto insurance for the car you drive is in your best interests.
Can You Register A Car Without Insurance
If you cannot legally drive without proving financial obligation to possible damages or liability during accidents, can you register a car without insurance? First off, it is subject to where you live. Most of the states in the US apply compulsory auto liability policies with minimum amounts. When purchasing or registering a car, you must provide proof of insurance, without which there is no registration.
Allowing your coverage to expire will result in the suspension of the vehicle’s plates and registration until after obtaining insurance and paying a fine in an administrative fee. If the police stop you, they are likely to charge you for driving an unregistered car.
Acquiring registration for a car may not be as complicated as you imagine. You need to begin by submitting the proper paperwork, paying the necessary charges, and presenting proof of insurance. Getting an insurance policy means contending with the above obstacles. After obtaining car insurance, registration for your vehicle is going to be simple, which you can do through the Department of Motor Vehicles in your state.
The Wrap Up
A proper answer to the question can you get car insurance without a license, should begin with the process of obtaining the auto. Before you start shopping for the right car insurance, you need to find the right car. Even though no legal restrictions prevent you from buying a car with no valid license, the process is more straightforward when you have a driver’s license.
Some car dealers are strictly enforcing driver’s license and proof-of-insurance regulations. It is vital to remember that you may want to take a test drive when purchasing a car. For that reason, some of the dealerships will require a copy of your driver’s license and insurance card before testing your preferred model. Other car dealerships are keener on their sale than the customer’s legal ability to drive, which often depends on individual protocols at the dealers.
However, purchasing a car with no license is much easier than it is to buy an insurance policy without a driver’s permit because the dealer forgoes the car’s responsibility after your purchase. Therefore, getting insurance coverage with no driver’s license is a more complex step.