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When your driver's license is suspended, it can have a major impact on your life—and your ability to get auto insurance. Options for auto insurance may be limited, but it is possible to get car insurance with a suspended license, although you'll typically pay higher premiums.
Do I Need Insurance While My License Is Suspended?
There are several reasons you may need car insurance while your license is suspended.
- To avoid a lapse in coverage: Going without auto insurance while your license is suspended can make getting coverage more expensive when your license is reinstated. Insurance companies generally classify you as a high-risk driver if you've had a lapse in coverage.
- To drive with a restricted license: Most states require car insurance to drive legally, which you may be able to do in certain situations even with a suspended license. If you can prove you need your car to go to work, attend school or meet other essential obligations, your state motor vehicle department may issue a restricted or hardship license. This kind of license typically has stringent standards as to where and why you can drive.
- To protect a leased or financed car: Until your loan or lease is paid off, auto lenders and leasing companies generally require you to have full coverage car insurance. This includes comprehensive coverage, which protects your car against theft or damage when you're not driving it, and collision coverage, which pays to repair your car if it's damaged in a collision. Both types of coverage protect the vehicle that acts as collateral for your loan or lease.
Can Car Insurance Companies See if Your License Is Suspended?
Insurance companies can see that your license is suspended when they check your driving record. When you apply for new car insurance or it's time for your existing policy to renew, your insurance carrier reviews your state motor vehicle records to determine how risky you are to insure. Insurance companies use your driving record, along with other information about you, when setting your policy rates.
Learn more >> Factors That Affect Your Car Insurance Costs
How to Get Car Insurance With a Suspended License
When your license is suspended, insurance companies may classify you as a high-risk driver, which can nearly double your car insurance premiums. Even if your current car insurance company doesn't cancel your coverage, it may be worth shopping for new insurance to see if you can get a better rate elsewhere. Here's how to get car insurance with a suspended license.
Determine if You Need an SR-22 Form
Depending on the reason your license was suspended, you may be notified that you have to file an SR-22 form with your state's department of motor vehicles. Sometimes called a certificate of financial responsibility, an SR-22 form confirms that you have enough car insurance to meet your state's coverage requirements. (Drivers in Florida and Virginia may have to file a similar form, the FR-44.) Your insurance company can file the document for you for a fee. If you're searching for new insurance, you'll need to inform potential insurance carriers that you require an SR-22.
Compare Coverage Options
To find insurance carriers who issue policies for drivers with suspended licenses, you can do an online search for "SR-22 insurance" or search car insurance websites using the term "SR-22" or "FR-44." Contacting an insurance broker is another option; brokers work with multiple insurance carriers to help you find the best policy. No matter how you shop for car insurance, be sure to compare the same type and amount of coverage from one provider to another.
Look for Ways to Save
Car insurance with a suspended license can be pricey, but there are some ways to reduce your costs:
- Increase your deductible. A car insurance deductible is the amount of any insurance claim you're responsible for paying before the insurance coverage kicks in. Deductibles generally range from $250 to $2,000. Choosing a higher deductible can mean lower premiums; just make sure you can afford to pay the deductible in case of a claim.
- Reduce your coverage. Downgrading your auto insurance can save you some money. For example, consider dropping nonessential coverage such as rental car insurance or auto glass coverage. If your vehicle is paid off and not worth much, eliminating collision and comprehensive coverage could reduce your premiums too. Just be careful not to slash your financial safety net too much.
- Switch to pay-per-mile insurance. Premiums for pay-per-mile insurance fluctuate from month to month based on how many miles you drive. Whether you're not driving at all or have a restricted license limiting your mileage, this type of insurance could mean significant savings.
- Keep your driving record clean. If you're driving on a restricted license, be careful to avoid moving violations, DUIs or other infractions that can cause an increase in your insurance rates. In addition to causing higher premiums, piling more black marks on your driving record could mean a longer license suspension—or worse.
Investigate Your State's High-Risk Insurance Pool
If you can't find car insurance with a suspended license, your state's high-risk or assigned-risk insurance pool could be an alternative. State departments of insurance create high-risk pools to ensure all drivers can purchase the minimum auto insurance required by law.
Insurers that participate in the pools agree to offer coverage to high-risk drivers. Since high-risk coverage tends to be more expensive than standard car insurance, it's generally a last resort, but at least ensures you're covered.
Learn more >> How to Lower Your Car Insurance Costs
Will My Insurance Be Canceled if My License Is Suspended?
A suspended license is one of many reasons insurance carriers can cancel your auto insurance, but they won't necessarily do so.
Insurance companies are required to notify you in writing of their intent to cancel your policy, along with the date your coverage will end. Once you receive this notice, start looking for a new policy right away so you'll have coverage in place before your car insurance ends. This will prevent a gap in coverage and help ensure you meet any minimum car insurance requirements your state may have for driving legally.
The Bottom Line
Depending on why your license was suspended and your state's laws, it could take three years, 10 years or more for the negative marks to drop off your motor vehicle record. During this time, you'll likely pay more for car insurance. But if you maintain good driving habits, your record should eventually clear up, which can reduce your car insurance costs.
Regularly shopping for auto insurance can help you find the lowest rates while you wait for negative marks to fall off your driving record. Experian's car insurance comparison tool is an easy way to compare your options. You'll get quotes from more than 30 top auto insurance providers in one place, helping you find the most affordable car insurance for your situation.