Your driver’s license is a valuable possession. It allows you to get behind the wheel of a car and travel to work, school, and other destinations. However, if you have your license suspended, you will no longer be able to drive legally. This can have a significant impact on your life, and it can also affect your car insurance.
This article will discuss how a license suspension can affect your insurance. We will also provide tips on how to get the best possible rates on car insurance, even if you have a license suspension on your record.
Does License Suspension Affect Car Insurance?
Yes, a license suspension can affect your car insurance. On the other hand, if your license has been suspended, it may be difficult to obtain insurance, especially if the suspension is the result of multiple at-fault accidents, driving under the influence, or other behaviours that make insurers believe you’re a risky driver. Furthermore, your current insurer may cancel your policy if they believe you are an unsafe driver with too much liability to cover.
However, if you already have auto insurance when your license is suspended, you will not automatically lose it. It is at the discretion of your insurer, and it is very common for insurers to keep you as a customer even if you have a suspended license. It is important to note, however, that you cannot drive with a suspended license in most cases, regardless of whether you have insurance.
Will a Suspended License Make My Insurance Rates Go Up?
If your license is suspended, your insurance rates may rise in many cases. A license suspension is usually the result of risky driving behavior. Raising your rates is a way for the insurer to reduce the risk of covering you and other drivers who are more likely to be involved in accidents in the future. Finding low-cost high-risk auto insurance is difficult, so if your license was suspended for reckless behaviour, finding good rates will be difficult.
Driving with a suspended license may have an impact on your auto insurance. This, like other risky behavior, may give them the authority to raise your rates or cancel your coverage. But since the decision may differ from one insurer to the next, it’s best to ask your provider directly.
Why Are Licenses Suspended?
While the specifics vary by state, there are a few general reasons why the authorities may suspend your driver’s license.
- Driving under the influence of drugs or alcohol (DUI)
- Unpaid traffic tickets or a point surplus
- Charges for careless driving
- A car insurance lapse
Suspension can be either definite (with an end date) or indefinite (with a payment, action, or other qualifying factor required). This is differentfrom having your license revoked in that it is only temporary.
What Are the Exceptions to a Suspended License?
Although the courts recognize that while the law may require your driver’s license to be suspended at times, the day-to-day reality of not having a driver’s license can have a disastrous impact on their livelihood and family. It can seriously impair your ability to perform essential tasks like work, school, shopping, and running errands.
As a result, courts will occasionally grant exceptions for drivers with suspended licenses. This would provide you with some relief from the suspension, allowing you to drive for necessary activities.
A hardship license, also known as a restricted license, allows you to drive a limited distance if your license has been suspended. You can then attend to family or personal obligations within that distance. Major exceptions include:
#1. Work or School Exception
Rather than restricting your driving to and from work or school, as with a hardship license, this exception allows you to drive to and from work or school. If you are caught driving for any other reason, the exception will almost certainly be revoked.
#2. Medical Exception
If you or a member of your family suffers from a medical condition that necessitates regular medical appointments, surgery, or therapy, the court may grant an exception to allow you to drive for those purposes. If you are caught driving for other reasons. The court would almost certainly dismiss the exception.
Because these exceptions necessitate insurance, some insurance companies will provide you with coverage tailored to your specific suspension and exceptions. For example, if your current policy does not provide coverage or if you need to purchase new insurance, you may be able to obtain high-risk insurance during the suspension period.
What Exactly is a License Suspension?
A license suspension is a temporary restriction on your license that prevents you from driving legally. To get your license reinstated, you must meet certain requirements outlined by your state’s department or bureau of motor vehicles. Your license can be suspended for a variety of reasons, including reckless driving, receiving multiple traffic tickets in a short period of time, failing to show proof of insurance, driving without insurance, and being arrested for DUI.
As earlier mentioned, a suspended license is not the same as a revoked license. If your license has been revoked, it is no longer valid. If you can get a new license, it will depend on your state and the reason your license was revoked.
Do I Need Car Insurance if My License Has Been Suspended?
When your license is suspended, keeping your car insurance is usually a good idea. Among the reasons are:
#1. Insurance Companies Dislike Coverage Gaps
A lapse in car insurance coverage is regarded as a red flag by insurance companies because it is frequently associated with higher-risk drivers. As a result, if you have a gap in coverage, your rate may rise.
#2. You Might Be Able to Get a Restricted or Hardship License
This enables you to drive legally to specific locations, such as work, school, or medical appointments. You must apply to the state for a hardship license, and they will make a decision based on your circumstances. To drive with a restricted license, you must have car insurance.
#3. To Have Your License Reinstated, You Must Have Insurance
Before your license can be reinstated, you may be required to pay outstanding fines, complete a defensive driving course, and provide proof of car insurance. Your insurance company may be required to file an SR-22 as well.
#4. It Is Required by Your Loan or Lease Company
If you have a loan or lease on your vehicle, you will almost certainly be required to carry insurance to protect the lender’s investment. Even if you are not driving your car, accidents could occur. While parked, your vehicle could be involved in a hit-and-run, or it could be stolen, vandalized, or destroyed in a fire.
If you do not have auto insurance while your license is suspended, you will be responsible for all vehicle repairs or replacement. If you finance or lease your vehicle, you will be in breach of your agreement if it requires you to maintain certain insurance coverages.
How Difficult Is It to Obtain Car Insurance While Your License Is Suspended?
It will be determined by the reason for your license suspension and the requirement to file an SR-22. You shouldn’t have much trouble finding car insurance after your license has been suspended or reinstated in most cases, but it may be more difficult if you’re required to submit an SR-22 because many insurance companies don’t offer SR-22 filings.
An SR-22 is a form that your insurance company must file with your state’s department or bureau of motor vehicles to confirm that you have enough insurance to drive legally. For serious driving offenses, a FR-44 form is frequently required instead of an SR-22 in Florida and Virginia. The insurance requirements for a FR-44 are more stringent.
Getting Car Insurance After Your License is Suspended
You cannot buy insurance if your license is suspended because you do not have a valid driver’s license. However, your current policy will most likely not be cancelled, and if the court allows exceptions, you may still be eligible for some level of coverage. You will not be listed as a covered driver even if your insurance company allows you to keep the policy without a hardship license or similar exception.
It is best to avoid suspension altogether. If your license is suspended, however, speak with the court about possible exceptions. You can also contact your insurance company to ensure that your coverage is adequate and does not lapse.
How Does License Suspension Affect Your Auto Insurance?
A suspended license can have a variety of consequences for your auto insurance. To begin with, most insurance companies require a valid driver’s license in order to provide coverage. If your license is suspended, your insurance company may cancel or refuse to renew your policy. Furthermore, having a suspended license indicates a higher risk to insurers, which may result in higher premiums or difficulty finding affordable coverage.
If My License Is Suspended, Will My Auto Insurance Be Automatically Canceled?
It is determined by the insurance company’s policies. Some insurers may cancel your policy as soon as they learn of your suspended license, while others may allow you to keep the coverage for the remainder of your policy period. It is critical to notify your insurance provider of your suspended license in order to understand how it will affect your specific situation.
Can I still get car insurance if my license is suspended?
Finding auto insurance with a suspended license is possible, though it may be more difficult. Your options may be limited, and you may face higher premiums or specialized insurance companies that cater to high-risk drivers. It is best to contact insurance agents or brokers who can assist you in finding appropriate coverage tailored to your specific needs.
How Long Will My Auto Insurance Rates Be Affected by a Suspended License?
The length of time a suspended license affects your auto insurance rates depends on the policies of your insurance company. In general, the effect of a suspended license on your rates lessens as you demonstrate responsible driving behavior and your driving record improves. It’s best to check with your insurer to see if they have any specific guidelines on how long the rates may be affected.
What Should I Do if My License Is Suspended and My Insurance Company Cancels My Policy?
If your license has been suspended and your insurance policy has been canceled, you must take the necessary steps to rectify the situation. Begin by addressing the cause of your license suspension and working toward a resolution. Contact insurance providers to inquire about coverage options for drivers with a previously suspended license once you have a valid driver’s license reinstated. Working with an experienced insurance agent can assist you in effectively navigating the process.