How to Get Car Insurance With a Suspended License
If your driver's license is suspended, it may be difficult to obtain auto insurance because insurers generally will not provide coverage if you are not legally permitted to drive or drive illegally while your license is suspended. If you do eventually obtain car insurance, your rates may skyrocket.
Drivers with suspended licenses can still find car insurance if they first obtain a restricted license or SR-22 insurance, depending on the terms of their license suspension. Furthermore, comparing rates from multiple insurers is frequently the most effective way to save money on car insurance.
Getting auto insurance with a suspended license
When your license has been suspended, the best course of action is often to obtain a restricted license from your state's department of motor vehicles, which may conditionally reinstate your driving privileges. Furthermore, getting SR-22 insurance may be the only way to get car insurance coverage and regain your driving privileges after your license has been suspended in some cases.
Apply for a restricted or conditional license
Certain insurers may provide insurance coverage if you are successful in your application for a restricted license. You will most likely be limited to non-standard insurance, which covers high-risk drivers, when looking for a car insurance policy with a restricted license. Among the non-standard insurers are:
- Acceptance
- The General
If your license was previously suspended for a traffic violation, a restricted license, also known as a hardship license, conditionally reinstates your driving privileges. The eligibility requirements and specific terms of your restricted license vary by state. If you have previously been suspended, you may be ineligible to apply for a restricted license. Furthermore, a restricted license may only permit you to drive during the day or for specific purposes, such as getting to work or school.
If your driving privileges have been suspended, you may be able to apply for a conditional license instead of a restricted license in some states. Obtaining a conditional license allows you to drive again, usually on the condition that you complete a DMV-sponsored driving programme.
In New York, for example, drivers whose licenses have been suspended for driving while intoxicated may be eligible for a conditional license if they complete a DMV-approved Impaired Driver Program.
Get SR-22 insurance
If your license was suspended due to a serious traffic violation, such as driving while intoxicated or without insurance, your state may require you to obtain an SR-22 insurance policy before you can have your license reinstated. SR-22 insurance is a type of policy in which your insurer files a form with the DMV attesting that you have the minimum amount of auto insurance coverage required in your state.
While most insurers can provide SR-22 coverage, some standard insurers may refuse to provide you with a quote because they consider you a high-risk driver. Non-traditional car insurance companies, such as The General, Acceptance, and Titan, may be your best bet for insuring your vehicle.
How to get cheap car insurance with a suspended license
Though it may be tempting to stick with your current insurer, comparing quotes from multiple companies is the best way to get cheap car insurance rates. This is because insurers weigh traffic violations differently when determining rates, so if your license is suspended, you will need to shop around for the cheapest car insurance company.
Why you should maintain car insurance while your license is suspended
If you are in the middle of the term of your insurance policy and your license is suspended, you should not cancel it. A coverage gap, which occurs when you cancel a policy and have no other coverage in place, can cause rates to skyrocket the next time you shop for auto insurance.
You may be tempted to cancel your policy in order to save money on insurance premiums; however, we discovered that rates for drivers with a lapse in coverage could increase by 29%. So any potential savings on premiums will most likely be outweighed by the increase in rates when you purchase your next car insurance policy.
Can you rent a car with a suspended license?
Car rental companies will not let you rent a car if your license is suspended. Furthermore, many major rental car companies, such as Avis, Budget, and Dollar, reserve the right to conduct an electronic DMV check on your driving record to ensure your license is not suspended or revoked. Furthermore, some rental car companies may refuse drivers with recent traffic violations, such as DUIs.
Can you buy a car with a suspended license?
There is no requirement that you have a valid license when purchasing a vehicle, but you must provide proof of insurance when registering your vehicle. While it is technically possible to purchase a car with a suspended license and obtain a title in your name, you will need to obtain insurance before registering the vehicle.
Furthermore, if you intend to finance your purchase, buying a car with a suspended license may be difficult. You will most likely be denied an auto loan if you do not have a valid driver's license.
Registering a car with a suspended license
To register a vehicle in most states, a valid driver's license is not required. However, you will almost certainly be required to provide proof of insurance as well as the necessary identification documents.
To begin, you must use one of the methods described above, such as applying for a hardship license or obtaining SR-22 insurance. After you've obtained insurance, you can apply for registration at your state's motor vehicle office.