It can be confusing and inconvenient to have a suspended license. Some of the most common questions after this happens revolve around what happens to auto insurance rates after a suspended license. Learn what to expect with your rates, how to keep them as low as possible, and everything else you need to know about car insurance after a suspension by reading our easy-to-use guide.
Reading: How long does suspended license affect insurance
For your convenience, our team has carefully examined all the major insurance providers to discover which insurance companies are the best. We have used this collected information to find the best auto insurance providers in your area. You can simply enter your zip code in the quote box above and receive free auto insurance quotes from several of them in a matter of minutes.
Does a suspended license affect car insurance rates?
Unfortunately, you can expect a change in your auto insurance rates after a suspended license. You’ll still be able to get car insurance, but companies will now consider you a high-risk driver, which is a factor that will increase your rates.
How much does a suspended license increase auto insurance rates?
As mentioned above, you are likely to pay higher car insurance rates after a suspended license. that’s just one of the consequences of being a high-risk driver, according to insurance companies.
There is also the possibility that some insurance companies may refuse to cover you. this would be a decision the company would make based on its perceived level of risk. This means that while you may be able to find car insurance after your license is suspended, you may have fewer choices among various providers than you did before the suspension.
It is also important to note that if you have a suspended license, it will remain on your driving record for several years. the length of stay depends on the state in which you live. this means insurance companies will continue to classify you as high risk for several years.
As a general rule of thumb, you can expect your auto insurance quotes to increase by at least 10% and up to 50% due to a suspended license. depending on the reason your license was suspended, the increase may be even higher. For example, DUI-related suspensions tend to lead to even higher increases and make it harder to pay for car insurance.
Steps to follow for car insurance with a suspended license
If your license is currently suspended, you can sometimes still get car insurance. That said, each state has different requirements to reinstate your license, and not all insurance companies will allow you to get coverage with a suspended license.
Remember that even if you have car insurance, you cannot legally drive if your license is suspended.
The process for obtaining auto insurance with a suspended license will be the same as it would be in any other situation. you need to compare quotes from various insurance providers to find the right one. remember to be honest throughout the process and expect your suspension to affect your rates.
The easiest way to get coverage with a suspended license is to join someone else’s policy. however, if you own your car, you may need to add the name of the insured person to the title in order to take this route.
See also: FDIC: Deposit Insurance At A Glance
If that’s not an option, you’ll want to ask insurance companies or an insurance agent about insuring a stored car that no one will drive. some may even require an affidavit confirming that you will not be driving the car.
what is sr-22 car insurance?
You may come across the term sr-22 auto insurance if your license is suspended. many states require you to have an sr-22 before your license can be reinstated.
an sr-22 is a certificate from your insurance company to let the state know you have insurance coverage. it is also called a certificate of financial responsibility.
the sr-22 certificate is not car insurance. it simply proves that you meet your state’s minimum coverage requirements and acts as proof of insurance. this usually includes civil liability insurance.
luckily, getting an sr-22 is easy. in many cases, it just indicates that you need one to apply for coverage from auto insurance companies. If you already have insurance, just let your insurer know you need it.
consequences of driving without a license or car insurance
It bears repeating that even if you have car insurance, you still cannot legally drive your car if your license is currently suspended. you need to have a valid license to drive a car.
That means if you drive while your license is suspended, your insurance company won’t necessarily cover incidents that occur.
In addition, there can be serious legal consequences for driving while your license is suspended. You can face jail time and substantial fines. your license may even be revoked depending on the state you live in.
reasons for a suspended license
There are numerous reasons why someone may have their driver’s license suspended. Possible reasons for losing driving privileges vary by state and may not be directly related to driving. causes may include:
- duis or dwis
- too many moving or traffic violations in a given period of time
- driving without insurance
- reckless driving </li
- being at fault in an accident resulting in death
- abandoning a vehicle on public roads
- not being physically or psychologically safe to drive
- not responding to notices from the department of transportation (dot) or the department of motor vehicles (dmv)
- not paying fines or traffic tickets
- not paying child support owed
pros and cons: suspending your insurance when your license is suspended
You may be wondering if you need to have auto insurance while your license is suspended. The simple answer is no, which means if you temporarily stop insuring your car, you can save some money.
However, there are some situations where you still need auto insurance. the most important of these is whether there are other drivers on your policy. If someone drives your car, he must have an insurance policy.
You may also want to keep paying for insurance to avoid having a coverage gap. this is important for your future insurance rates, as insurance companies view gaps in coverage as liabilities, which typically drives up your rates.
See also: What are insurance surcharges and how long do they last? | AutoInsurance.org
You may also want to insure your car while it’s in storage to protect it from theft, vandalism, or other damage. this will usually involve getting comprehensive insurance.
If you have a restricted license instead of a suspended one, you need insurance for the times you can drive. Finally, if you have an auto loan, you still need to have comprehensive coverage on the vehicle.
how to reduce auto insurance rates after license suspension
You will be considered a high-risk driver after your driver’s license suspension, which means your insurance rates will inevitably go up. The good news is that there are a few ways to lower your rates through various discounts. the specific options available to you will depend on your chosen insurer.
A great option is to take a defensive driving course. Not only will this give you a discount, but it can also show your insurer that you’re taking steps to be more responsible behind the wheel. You may also qualify for discounts when you bundle your auto insurance with other types of insurance. you can even get a discount for having certain safety features on your car.
You can also reduce your auto insurance coverage to the minimum required by your state. This is a great strategy to get cheap car insurance and have a lower insurance premium.
Of course, one of the best ways to get the lowest rates is to shop around. When you compare quotes from multiple providers, you need to find the best deals on an auto insurance policy.
our recommendations for auto insurance
We recommend that you use our free comparison tool to compare auto insurance rates among various providers. simply enter your zip code into our quote box and you’ll receive multiple quotes from providers in your area.
We also recommend considering geico, usaa and state farm insurance.
geico: best overall
geico earned an overall rating of 9.1 out of 10.0 from our experts. this reflects a rating of 9.8 for industry reputation, 9.4 for cost, 8.5 for coverage, and 9.0 for customer experience.
usaa: best military supplier
usaa received an overall rating of 9.6 out of 10.0 in our expert review. this reflects a 9.3 for industry reputation and customer experience, a score of 9.5 for coverage, and a 10.0 for cost.
faq: car insurance with suspended license
the detroit office collects data from all the major auto insurance providers to formulate rankings of the best insurers. Our in-depth rating system takes into account market share, coverage, auto insurance rate estimates generated by Quadrant Information Services, customer satisfaction, and ratings from industry experts. each insurer receives a weighted score across four categories, as well as an overall score of 10.0.
We recommend auto insurance companies based on these ratings, but we also encourage you to do your own research and compare quotes to find the best coverage.
See also: Anthem BCBS – Requirements for Weight Loss Surgery