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Can You Get Insurance with a Suspended License?

Getting car insurance with a suspended license is possible, but the process can be challenging. It is possible to lose your license for a variety of reasons, including being convicted of DUI or accruing too many traffic violations. Maintaining minimum insurance requirements mandated by your state is crucial regardless of the obstacles that having a suspended license can create. 

The insurance industry may offer high-risk drivers non-standard policies, such as SR-22 insurance. As a result of the increased risk, these policies often have higher premiums. 

How License Suspension Affects Your Auto Insurance 

Insurance companies typically monitor driving records by regularly checking with the DMV and other databases. While insurance companies are not usually notified of a suspension, they periodically run motor vehicle records, often at renewal. As a result, they could cancel your policy with notice so they do not take on the increased risk. 

Many insurers will exclude coverage for individuals with suspended licenses. By doing so, the insurer can mitigate its risk without compromising the coverage of other policyholders. Each state may be different in handling license suspensions, but most insurers will follow the same protocol once they learn of the suspension.

How to Get Insurance With a Suspended License 

If you have a suspended license, you do have some options. You can apply for a restricted or conditional license or SR-22 insurance.

Restricted or Conditional License 

A restricted license can be issued in certain circumstances, allowing you to drive to specific places, such as work or medical appointments. If you do not need to drive a lot, this could be a good option if your license is suspended. 

Alternatively, you could get a conditional license, which requires you to complete rehabilitation programs. Fees and legal obligations may be involved in obtaining either license, although costs vary. 

The difference between a restricted and conditional license is the specific restrictions. A restricted license limits how much you can travel, whereas a conditional license may impose restrictions based on particular issues that cause the suspension, like bad driving or substance abuse.

How to Apply for a Restricted or Conditional License 

Having a suspended license doesn’t have to be the end of the world. Apply for a restricted or conditional license by following these steps.

  1. Ensure your eligibility. Find out if you qualify for a restricted or conditional license based on the nature of your suspension and local regulations.
  2. Complete any required programs. As directed by the court or licensing authority, complete any mandatory programs, such as rehabilitation programs or traffic school.
  3. Submit an application. Provide all required documentation when applying for a restricted or conditional license.
  4. Make a payment. Pay any associated fees, such as application fees or reinstatement fees.
  5. Obtain approval. Once you are approved, be sure to follow the rules and restrictions based on the type of license you obtain. 

SR-22 Insurance 

An SR-22 form is a way to prove that you can pay for damages in the event of an accident. An SR-22 certificate of financial responsibility is often required after serious driving offenses. SR-22s are needed for a variety of reasons, such as:

An FR-22 is similar but only applies to the state of Virginia. 

A number of factors influence the cost of SR-22 insurance, including driving history and location. As a result of increased risk, premiums are typically higher. Fees associated with filing and fines may also be charged. FR-22 requirements in Virginia are similar to the SR-22, requiring filing of financial responsibility due to certain violations.

How To Get an SR-22 

If you have a suspended license due to serious driving violations, you may need to obtain an SR-22. Follow these steps to get one.

  1. Contact your insurer. Inquire with your current insurer about the need for an SR-22 and whether they offer this service.
  2. Determine your eligibility. Your state’s Department of Motor Vehicles (DMV) will determine whether you are eligible to file an SR-22 based on your specific violation.
  3. Pay any fees. SR-22 filing fees may apply. Be prepared to pay them.
  4. File with your insurer. The SR-22 form must be filed with the appropriate state authorities by your insurance company.
  5. Follow the rules. Stay compliant with SR-22 regulations by maintaining continuous insurance coverage and renewing your policy promptly by paying premiums on time.

The Importance of Maintaining Coverage 

Keeping your auto insurance current while your license is suspended is crucial to avoid severe financial consequences. Insurers perceive lapses in insurance as an increased risk, so high premiums may apply upon reinstatement. 

It is possible to see a rise in rates of 10-40% if you have had a lapse in coverage for a long time or have a poor driving history. For example, a driver with a clean history and no lapses could pay $700 annually, while a driver with a lapse or bad driving record could pay $1,000 or more. 

Maintaining continuous coverage prevents substantial financial penalties when your driving privileges are restored and higher insurance costs.

Car Ownership With a Suspended License

Having a suspended license, while challenging, does not mean you cannot own a car. If you already own a car, then you are good to go. If you want to buy a car, you can technically do so if your license is suspended, but you won’t be able to drive it. 

Renting a car will be impossible for a driver with a suspended license. Car rental companies will perform a motor vehicle report with your local DMV and won’t allow you to take a car if it is suspended. 

You can register a vehicle in most states without a valid driver’s license. You will be required to show proof of insurance in most cases and provide other identifying documents. Be sure to check with your local DMV. 

Putting It All Together 

Obtaining auto insurance with a suspended license is challenging but crucial. DUIs and excessive violations are among the reasons for license suspensions. During suspension, it is vital to maintain insurance, as lapses can increase insurance premiums by up to 40 percent upon reinstatement. 

Serious offenses may require an SR-22 or FR-22 certificate. It is necessary to inform your insurer and file SR-22 forms if needed to secure insurance while you are suspended. You will avoid potentially devastating financial consequences if you maintain car insurance with a suspended license. Buying a car can be challenging if your license is suspended and renting is impossible.

Frequently Asked Questions

Yes, you can change vehicles even if your license is suspended, but be aware that your insurer can cancel your policy, or you may be required to file an SR-22. The insurance company may also exclude you as a driver on the policy.

If the insurance company you are with chooses to cancel the policy, then your family members may need to seek their own coverage. Some insurers, however, will just exclude the suspended driver from coverage, allowing family members to stay insured. 

If you are currently excluded, you can ask the insurer to remove the exclusion as long as you have proof of reinstatement. Check with your local DMV to see what your options are if you had to file an SR-22.

Some insurance companies specialize in providing coverage to high-risk drivers or those with suspended licenses. It is common for these companies to offer non-standard insurance policies at a higher premium explicitly designed for individuals with poor driving records.

Different states have different penalties for driving with a suspended license. You may face misdemeanor charges if this is your first offense, which could result in a fine or jail sentence of up to $2,500, or your vehicle may be impounded. It is possible to receive a felony conviction with a longer sentence and a steeper fine if you commit additional violations.

Find an auto insurance policy that meets your needs.

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Find an auto insurance policy that meets your needs.

Get a quote