Thursday, February 10, 2011

Buying Car Insurance without a License

Despite popular belief, motorists are often capable of purchasing vehicle coverage without having a license. While some companies may charge unlicensed drivers more for insurance, competitive rates can still be found if motorists shop around and compare quotes. Although there are various reasons why a person would pursue auto protection without proper licensing, two of the more common causes include people who have had their driving privileges taken away, and inexperienced motorists who have not yet passed their driving exam. In each of these situations a motorist can often find an insurer willing to provide adequately priced coverage.

No matter a motorist’s situation, one of the best ways to find car insurance with no license is to shop around and make price comparisons. Not all insurers can provide adequately priced protection for inexperienced or high risk drivers, but many others do. Online comparisons allow vehicle owners and future motorists to evaluate dozens of estimates at once, making for more efficient shopping than calling several companies directly.

The reason why an inexperienced and unlicensed motorist may want to purchase vehicle coverage is because many states have strict financial responsibility requirements. In states such as California and Florida it is illegal to operate a motor vehicle without purchasing a minimum amount of coverage. If a young and unlicensed motorist wants to learn to drive in their own vehicle, the automobile in question must be adequately insured.
Potential for Cheaper Auto Insurance for Unlicensed Drivers

Operating a motor vehicle without the necessary level of coverage could result in a driver needing an SR-22 For Revocations/Suspensions in addition to potentially paying a fine. This document is obtained from a licensed coverage provider, and demonstrates that the motorist in question has purchased “future responsibility.” In Nebraska and many other states, an SR-22 is required for three years after a motorist has had their driving privileges suspended.

The reason why an unlicensed driver may have difficulty finding adequately priced coverage is because auto insurance rates are largely based on the risk that a motorist will file a claim. A motorist who has had their driving privileges suspended for driving while uninsured or has received multiple moving violations will likely have a poor driving record. A blemished driving record often demonstrates to insurers that the motorist has a greater risk of filing a claim in the future.

Young and inexperienced motorists may have difficulty finding cheaper coverage for very similar reasons. Statistically, motorists under the age of 25 are involved in more accidents than any other age group. Additionally, an increased tendency to speed and take unnecessary risks while driving also increases their likelihood of filing a claim. Although it may be more challenging for unlicensed drivers to find affordable coverage, as previously stated there are many different insurers that can still offer competitive prices for unlicensed individuals motorists who are willing to shop around.

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