Many motorists may think that because they are unlicensed an insurer may be hard to find and there are others that may believe that lack of a driver’s license will cause an auto insurance company to charge extremely high rates for policies. In many cases this may not be an accurate assumption and by shopping around consumers may be able to locate a carrier that is willing to provide coverage at a reasonable rate to those who may be unlicensed or even licensed out of the country. Fortunately for individuals who are in such a situation, an affordable policy may be out there and a consumer simply needs to take the time to find a company that is willing to provide it.
Individuals should know that there are actually companies that target and specialize in consumers that are not licensed, internationally licensed, or even have an out of country identification card. There are carriers that are willing to offer car insurance without license to individuals through certain underwriting guidelines. Although, a motorist must be aware that the reason for being unlicensed can hike up prices if it is due to certain infractions. Suspension of driving privileges due to a conviction of certain offenses such as operating a vehicle while impaired will likely raise the rates of a premium, but having an international license may not cost the driver much more than being domestically licensed.
While it may not seem to make much sense to obtain automobile policies as an unlicensed consumer, there are a few good reason to do so. One such reason is that if an individual wishes to keep the registration valid in states that require continuous coverage to do so, they will need to maintain an active policy. Although it may not seem like a good investment, failure to keep a car insured can lead to fines and penalties that can amount to more than a premium if a lapse occurs and the state is made aware of it. Also, if a vehicle owner is intending to have a driver operate and borrow the automobile, it will most likely need to be covered. According to the Wisconsin Consumer Guide to Auto Insurance a borrowed vehicle will often be covered by the policy which can help an unlicensed automobile owner should such a situation come up.
A very common reason to purchase a policy without a driver’s license is to have driving privileges reinstated. Many states require that once licensing has been suspended that one of the requirements to have the suspension lifted is by providing valid proof of coverage. Another reason that policies may need to be maintained is because an individual is financing a vehicle. Although a driver may become unlicensed it does not mean that they do not need to abide by the loan agreement. Most financial institution will require that borrowers keep automobiles insured against physical damage as part of the contract. Although individuals feel that maintaining coverage even though they cannot drive may be a waste of money, there are several instances where it may be necessary.
Source: http://www.onlineautoinsurance.com/learn/buy-auto-insurance-with-no-drivers-license.htm
