Do you need car insurance with a suspended license?
Your driver’s license may be suspended for a number of reasons, such as:
Driving while intoxicated or under the influence of drugs
Driving recklessly
Leaving the scene of an accident
Accumulating points for crashes and traffic violations
Failing to maintain adequate car insurance
Failing to pay motor vehicle fines, fees, or surcharges
Failing to pay court fines, fees, or surcharges
Failing to comply with a child support order
Failing to appear in court for a traffic ticket or parking ticket
When your driver’s license has been suspended, it can be tough to get or maintain car insurance. However, you still might be able to purchase coverage without a valid driver’s license. In fact, insurance may be required if someone else will be driving your car while your license is suspended.
In some cases, though, an insurer may reject your application for coverage if your driver’s license has been suspended. Additionally, your insurance company might cancel your coverage in this situation. If you fall into either of those categories, you might still own a car, but be unable to obtain the required car insurance. This would lead to a lapse in coverage.
Practically every state requires motorists to carry basic car insurance. So, if your coverage lapses, you could:
Be subjected to penalties if you’re caught driving without insurance.
Be sued if you lack insurance to cover damage or injuries that you cause in a crash.
Face higher car insurance premiums when you look for new insurance.
You might consider applying for a hardship or restricted license, which lets you keep driving but with limitations, such as driving only to and from work, school, or doctor’s appointments. You also might look into a conditional license, which offers limited driving privileges once you complete a driver’s education course.
Car insurance coverage for drivers with a suspended license
When companies do agree to offer coverage when your license is suspended, you might find that it costs significantly more than you previously paid. At the very least, you might expect to pay more than $2,000 a year for this type of coverage, based on Insurify’s data.
If you’ve financed your car, Janet Ruiz, director of strategic communication at the Insurance Information Institute, points out, your lender may require comprehensive and collision insurance as part of the lending agreement. “In other words,” she says, “they’ll want insurance to protect their financial asset — the automobile.”[1]
You would have to purchase collision and comprehensive coverage in addition to state-mandated liability coverage.
Keep in Mind: Adding collision and comprehensive coverage to a car insurance policy typically increases the premium.
