Can You Get Car Insurance Without a Driver’s License?
A more common question than people would think, is it possible to get car insurance with no drivers license? Generally, yes, but the routes vary depending on the reasons for coverage. Owners who can’t drive because of a medical problem, Texas residents whose driver’s license is suspended who must still file with a court or DPS, or anyone who wishes to insure a vehicle in his or her name that is driven by another member of the family have options for coverage without an active driver’s license in hand. Why Someone Without a License Might Still Need Coverage The more prevalent situation is ownership of the vehicle instead of driving. Under Texas law, and most lienholders, even if you’re not the legal owner of a car, you still must have liability coverage while it is registered and parked on public or private property. You can be the named owner of the car with a secondary driver, for example a spouse or an adult child, as the primary driver. This kind of policy is underwritten based on the driving record and risk profile of the operator listed on the policy, not the policyholder. A second, and growing scenario is when a license is suspended and an SR-22 is also required. An SR-22 is a necessary requirement for Texas after a number of traffic violations such as driving without insurance, a DUI or DWI conviction, at-fault accident while driving without insurance, and a series of traffic violations have occurred. An SR-22 is not a standalone insurance policy; it’s a certificate of financial responsibility that must be filed in Texas after a variety of traffic violations, such as driving without insurance, a DUI or DWI conviction, at-fault collision while driving without insurance, and a string of serious traffic violations. In Texas, this filing is required to be active for two years from the date of conviction and even a day after can result in an SR-26 cancellation notice which can cancel the license and impose a $100 reinstatement fee. Car Insurance Without a Driver’s License: Options to Consider Situation Potential Insurance Option What to Consider You own a vehicle but do not drive Owner’s policy with an appropriately listed driver The insurer may need information about the person who regularly operates the vehicle Your license is suspended Policy with an SR-22 filing, when required The SR-22 is a financial-responsibility filing rather than a separate insurance policy You do not own a vehicle Non-owner insurance Generally provides liability-related protection for eligible situations involving vehicles you do not own You need an SR-22 but do not own a vehicle Non-owner SR-22 policy Texas DPS confirms that non-owner SR-22 coverage may be used when an individual does not own a vehicle Another household member drives your vehicle Policy reflecting the regular driver The insurer should know who regularly operates the vehicle You have an expired or invalid license Speak with an insurance professional Eligibility and filing requirements can vary depending on your specific situation Non-Owner Insurance: Coverage Without a Car Non-owner insurance is a type of coverage that is available for individuals who do not own a vehicle but do drive a borrowed or rented car from time to time. A liability-only policy, which will cover the driver, not the car, and will meet the state’s minimum 30/60/25 coverage requirements when the driver drives another vehicle. Non-owner insurance doesn’t cover comprehensive or collision damage, either, and it’s not applicable to cars that are owned by household members, which usually means that the car would need to be listed on the policy being held by one of the household members, if you regularly drive a spouse’s or roommate’s car, for example, then that car would typically be added to their policy. Another typical method for meeting an SR-22 requirement if the driver does not own a vehicle is a non-owner policy. Current market data indicates that non-owner SR-22 premiums in Texas typically fall between $40 and $90 per month for standard driving violations, while SR-22s issued for DUIs are in the $65 to $120 monthly range, taking into account the perceived risk of insurers. This is because the rate is less than a similar owner’s SR-22 policy because this policy insures the driver’s risk only, and not a particular vehicle. How SR-22 Insurance Actually Works An SR-22 is often confused with an insurance product. It is not. A document that your insurance company submits electronically to the Texas Department of Public Safety that states that your insurance policy complies with the state’s minimum insurance requirements. The filing is attached to either an owner’s policy, or a non-owner policy, whichever one you might have. Texas drivers who need to get an SR22 insurance policy will be expected to pay more than a policy that isn’t filed because they are considered to have a significant risk for the time of the violation, industry data indicates, meaning a driver might end up paying up to 30 percent or more on top of what they would pay without the filing. The SR-22 period is a commitment of continuous coverage, there is no exception to this rule. Drivers should also try to have their SR-22 on an automatic basis and verify directly with their driving agent that the SR-22 has been filed and accepted by the DPS before assuming that their license is re-instated due to the filing period resetting after lapse. Simply purchasing the policy does not mean the license has been restored, further court or DPS procedures may be required for some driving histories. Common Situations That Confuse Drivers There are certain scenarios that frequently confuse drivers. Firstly, an expired license will not signal the same as a suspended or revoked license, a licensed insurer might still be able to write down a standard policy for an owner that had an expired license, but in the event of a violation, an insurer will typically require the SR-22 conversation above. Second, a driver who moves out of Texas during the
