Buying car insurance comes with its fair share of hurdles, from credit checks to 20-page forms. But as difficult as it is to get coverage under regular circumstances, it’s even harder as a non-standard customer, such as a non-licensed owner. If you’re in this situation, there is good news: It’s still possible to get car insurance without a license, or even a permit.
Thanks to flexible insurance options, plenty of individuals manage to secure auto coverage without having a license– whether it’s for a vehicle in storage or one that a family member drives. However, the process is often more complex and potentially costlier than for licensed drivers.
Note: These tips should not be considered official insurance guidance. Please consult an insurance professional or broker when making decisions regarding insurance.
Why You Might Need Car Insurance as a Non-Driver
Getting insurance on a car you don’t plan to drive may sound silly at first. But just because you’re not getting behind the wheel doesn’t mean your vehicle doesn’t need protection.
There are many situations that necessitate car insurance for non-drivers:
- Someone Else Drives Your Car: There are many situations in which the owner cannot drive (due to age, medical issues, or other limitations) and relies on a caregiver, family member, or personal driver. The policy then protects the owner’s asset and provides liability coverage for the licensed individual operating the vehicle. The car might also be owned for general use by other licensed family members.
- Insuring a Minor or New Driver: Minors, typically under 18, often cannot legally enter into contracts, including insurance policies. Consequently, a parent or guardian, even if unlicensed, may need to purchase the insurance policy for a vehicle driven by a licensed minor in the household. Similarly, a student driver with a learner’s permit requires insurance coverage, often by being added to an existing policy or having a policy secured by the vehicle owner. Some states may even require proof of insurance before a new driver can obtain their license, in which case the owner will be responsible for showing this protection.
- Protecting Valuables: Vintage, Collector’s, or Stored Cars: Owners of classic, vintage, or collector’s cars not driven regularly still need protection against theft, vandalism, fire, and other non-collision damages. “Parked car insurance” or “storage insurance” (often comprehensive-only) is designed for this.
- License Suspension or Revocation: If a license is suspended/revoked, insurance may still be needed to avoid coverage lapses (preventing higher future premiums), protect financed/leased vehicles, or for SR-22/FR-44 filings required for reinstatement.
- Temporary Unlicensed Status: If you have temporary unlicensed status due to relocation or a temporary medical condition, cancelling your insurance isn’t always recommended. Because a lapse in coverage can hike up your insurance rates, getting non-license insurance to fill in the gap can help you secure better rates later on.
Regardless of your situation, understand that possessing car insurance does not grant an unlicensed individual the legal right to drive. The policy covers the vehicle for designated licensed drivers or non-driving risks. Driving without a valid license is illegal and carries separate penalties. Furthermore, any claims due to an unlicensed driver will likely be denied even with valid insurance.
What to Know About No-License Car Insurance
While obtaining car insurance without a license is possible, it comes with certain challenges and considerations.
It can be hard to find
Because fewer insurance companies offer policies to unlicensed vehicle owners, it may be difficult to find options in the first place. Many major national insurers use underwriting processes that heavily rely on a driver’s license number to access driving history– a critical component in risk assessment. Without this data point, these companies may decline to provide a quote or coverage.
Online auto insurance quoting tools, while typically very convenient, usually require a valid driver’s license. This means your best bet is directly contacting smaller insurance companies or those specializing in non-standard policies, which is more time-consuming than the standard process.
It may be more expensive than you expect
Due to perceived increased risk and the absence of a direct driving record for the owner, car insurance for unlicensed individuals is typically more expensive. Premiums can be significantly higher, with some estimates suggesting an average increase of 67% compared to standard policies for licensed drivers with good records.
This increased cost is influenced by factors like the designated primary licensed driver’s record, including age and driving history. If this driver is young or has a poor record, the premium will reflect that. Some carriers also apply surcharges simply because the policyholder is unlicensed. Furthermore, options might be limited, with insurers potentially offering only basic coverage and fewer optional add-ons.
It may not be practical for you
Due to challenges and higher costs, no-license insurance is typically only recommended for a subset of consumers. It’s not a workaround for those choosing not to get licensed but intending to drive. It’s also not a money saving hack if your license expires and you don’t get around to renewing it. Once you get a quote for a no-license insurance policy, you need to weigh the costs to figure out whether it makes sense for you.
How to Get Car Insurance With No License
Navigating the process of obtaining car insurance without a driver’s license requires a proactive and informed approach.
Call any carriers you have in mind (and those you might not)
Directly contact insurers, especially if you have existing policies with them. Research companies known for flexibility or non-standard policies. Some recommend looking into carriers like: The Hartford, Acceptance Insurance, Direct Auto, A-MAX, Kemper, National General, Mercury, and Foremost.
When you speak to a representative, be clear and direct. Use phrasing such as, “I own a vehicle that I do not personally drive, and I need to purchase an owner’s policy. I would like to list my son / caregiver / spouse as the primary operator.”
Be ready with questions about their policies for unlicensed owners, primary driver requirements, state ID acceptance, excluded driver implications, information needed, coverage types, and SR-22 filings if applicable. With direct communication, you’ll be able to figure out if their options fit your needs.
Talk to an insurance agent
Although it’s not always necessary to work with an independent insurance agent, it can be helpful for navigating unique circumstances, such as buying non-license insurance. An experienced agent can save considerable time by curating a list of insurers to start out contacting. They can also help you find a policy that best fits your needs and potentially identify more competitive rates.
Get a state ID
A state-issued ID card or other government photo ID can serve as identification for the insurance application if you lack a driver’s license. While a state ID works for identity verification, it does not grant driving privileges. However, many insurers accept it as a form of identification if other conditions are met.
Next Steps to Insure Your Vehicle
Getting adequate protection for your vehicle is essential regardless of your license status. While securing car insurance without a license comes with significant costs and limitations, it’s definitely worth it for the protection it provides off the road or for you as a passenger.
Reach out to a licensed insurance agent for help securing a non-license policy and vetting the coverage to make sure it fulfills your needs. Remember that vehicle registration and insurance requirements are intrinsically linked and vary by state. As you shop for a policy, be sure to comply with local Department of Motor Vehicles (DMV) regulations and state insurance laws.
Frequently Asked Questions About Non-License Insurance
Can you get car insurance if your license is suspended?
You can typically get car insurance even if your license is suspended or has been revoked. Individuals with a suspended license often need to secure car insurance, sometimes with an SR-22 form, to meet state requirements for license reinstatement or to maintain coverage on a vehicle they own but cannot currently drive. While it may be more complex and potentially more expensive, acquiring car insurance with a suspended license is generally possible and often a necessary step for reinstatement.
Do I need a US driver’s license to get car insurance?
Car insurance can cover international drivers in certain situations. Individuals visiting from another country may be able to use their foreign license or an international driving permit to obtain insurance coverage. However, it might affect the premium if their international driving record is not easily accessible.
Can you insure a car but not a driver?
You can insure a car itself for certain risks without necessarily insuring a specific person to drive it, particularly through “parked car” or “storage” insurance. This type of policy, often structured as comprehensive-only coverage, protects the vehicle from non-collision incidents like theft, vandalism, or weather damage while it is not being operated.
