The status of your driving license has a huge bearing on your car insurance. It determines whether you can get an insurance or not and how much your insurance costs will be. The ideal situation is having a full valid license which allows you to get car insurance at affordable rates from a range of companies.
Why do insurance companies need a driver's license?
A driver's license helps the insurance company conduct a background check and determine the risk posed by the driver or the likelihood for him or her to be involved in an accident. This is determined by the details of your driving license which are used to profile your driving record. When you are charged or ticketed for traffic violations and involved in accidents and DUI cases, all these are captured in your driving record. The more incidents you have recorded the higher the likelihood for you to have an accident. The insurance company is therefore in a position to evaluate your risk and the rates to charge you.
Individuals with a valid driving license only have to worry about their insurance cost if they have a poor driving record. However, for people with suspended or expired licenses, there is a risk of being denied insurance.
A suspended license and car insurance
Your driving license can be suspended for a number of reasons especially violation of traffic codes. For example, driving under influence or when intoxicated, accumulation of unpaid parking tickets and reckless driving charges, late insurance coverage can easily see your license suspended.
Once your driving license is suspended you cannot access insurance as before. This is because you will lose your current cover as soon as it is reviewed or when you inform the company. The reasons for you losing your driving license at the end result in you being categorized as a high risk and unless the company has provided for such, you will have to look for another provider. Without a driver's license, you cannot get an insurance cover so for most of the time, you will have to wait and meet the requirements to get the license reinstated.
However, in some cases, you will need to drive which means you have to apply for a restricted or hardship driving license. Depending on your state and circumstances which led to the suspension of your driving license, you can be given one which means you have to start the search for an insurance provider who has services for high-risk drivers.
Provisional license and learning permits
For first time drivers, having a provisional license or a learner's will be sufficient for one to get a car insurance. The main challenge will be the high insurance rates charged. Learners and those who have just finished training are viewed as lacking the experience to make them competent drivers. Their risk is further increased by their young age which makes them prone to misjudgment while on the road increasing the risk of accidents. Other insurance companies may require someone with a learner's permit to be guaranteed a valid license within 30-45 days for them to provide insurance coverage.
Only individuals with suspended or expired licenses risk losing coverage and that could mean no more driving.