Car insurance is important because it offers substantial financial protection if you or others are involved in an accident. Even if you don’t have an active driver’s license, most states require you to carry car insurance if you own a vehicle. Here’s your guide to finding cheap car insurance without a license.
Is Car Insurance Necessary if You Don’t Have a License?
You might wonder whether insurance is even necessary if you don’t have a license. Regardless of your status, car insurance is still important if someone other than yourself frequently drives your vehicle. If your child, spouse, caregiver, or another individual regularly uses your car, they need insurance coverage so you won’t have to pay as much if they’re involved in an accident. If you currently have a learner’s permit and expect to earn your driver’s license soon, you’ll also need insurance before you can start driving.
If you own a classic car that you don’t drive too often, it is beneficial to insure it against potential theft or damage while stored. Although you might not need collision coverage, you may be able to keep comprehensive coverage and remove the coverage you don’t need. No matter where you live, it’s important to be aware of the state laws regarding car insurance. Currently, Virginia and New Hampshire are the only states where car insurance is not mandatory.
Can You Get Car Insurance With No License?
It’s possible to purchase car insurance with no license, although it may take more time to accomplish. When you buy car insurance for the first time, many insurers will ask to check your driver’s license. This allows them to review your driving history in order to determine what rate to set. If you lack a driver’s license, they may instead ask you to provide the driver’s license of the primary driver or the person who you expect to drive your car the most. Having at least one licensed driver on the policy may make it easier to get an accurate quote for your insurance premiums.
How To Obtain Cheap Car Insurance With No License
Here are a few of the most common methods for obtaining cheap car insurance as an unlicensed driver.
Listing Yourself as an Excluded Driver
The most common way to obtain cheap car insurance without a license is to purchase a policy that allows you to list yourself as an excluded driver. But remember that as an excluded driver, if you should decide to drive the car, you will forfeit any right to make a claim if you get into an accident. Typically, it costs more to insure individuals who don’t have a license because most insurers classify them as high-risk drivers.
When you’re an excluded driver, you help the insurer reduce risk, and they can set more flexible rates as a result. After you determine the primary driver on the policy, the insurer can use motor vehicle records and that person’s driver’s license to set rates. It’s important to keep in mind that the exact premium rate you can expect will depend on the primary driver’s driving record.
Purchasing Parked Insurance
It’s possible to purchase cheaper car insurance if you rarely drive your vehicle and mostly keep it in storage. Parked-car coverage only provides comprehensive insurance, which pays for any damages to your vehicle resulting from things beyond your immediate control, such as extreme weather, fire, vandalism, or theft. Since you won’t drive the vehicle in the immediate future, insurers most likely won’t require you to provide proof of insurance.
Typically, this form of insurance is cheaper than traditional policies that include other types of coverage. But remember that you’re still considered an uninsured driver if you drive your car while you only have parked insurance. Just like listing yourself as an excluded driver, if you decide to drive and get into an accident, your parked-car insurance won’t pay for any damage to your vehicle.
Adding a Licensed Driver to Your Registration
Your vehicle registration is the legal documentation that proves you’ve registered your vehicle in your state and have paid the required fees. If you can’t find a cheaper policy because you don’t have a driver’s license, you can add a licensed driver to your vehicle registration. This makes them the co-owner of your vehicle and can increase the chances of your vehicle being insured. It may also allow you to access cheaper policies. Typically, you can change the registration by visiting your local DMV and paying a fee.
Easy Ways To Find Cheap Car Insurance
Although insurers won’t cover claims that occur when you or someone else drives your car without a license, it’s still possible to obtain cheap full coverage car insurance that insures licensed individuals. This extra protection may be useful if someone drives your car frequently, even if you don’t drive it yourself.
There are a few ways you can increase your chances of finding cheap car insurance:
- Taking steps to improve your credit score
- Ensuring that the person who uses your vehicle practices safe driving
- Comparing different insurers
- Obtaining quotes from local or regional insurance companies
- Contacting an independent agent to determine where to find no-license policies
- Visiting your local DMV to obtain a state-issued identification card
- Calling insurers directly to ask about their policies
There are a number of reasons why an individual might not have a driver’s license, but special circumstances often exist that might require car insurance. Even if you’re not able to take your car out for a spin, it’s beneficial to have the coverage you need. There are many types of insurance that you can get as an unlicensed driver, and it’s important to do the research before you decide to buy a policy.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.