How to find the best car insurance for a driver with a suspended license

Finding car insurance with a suspended license can be tricky. Depending on the reason your license was suspended, you could find a workaround — namely via a restricted driver’s license. It can be confusing if your license was suspended when you are carrying active car insurance. Let’s explore the ins and outs of auto insurance for drivers with a suspended license.

Car insurance with a suspended license
  1. How to get insurance with a suspended license
  2. What to do with your car insurance after your license is suspended
  3. Additional resources

How to get auto insurance with a suspended license

Most auto insurance companies won't issue a new policy to a driver with a suspended license. First, you’re not legally allowed to drive. Second, it would be a risky investment to insure a driver with a suspended license. Although there are non-driving related reasons a license can be suspended, many are related to driving recklessly or violating the rules of the road in one of the below ways:

  • Reckless driving
  • Accumulation of license points
  • Driving without insurance

To an auto insurance company, a client exhibiting reckless driving habits is a claim payout waiting to happen, i.e., money lost. As a result, insurance companies charge potentially risky clients higher premiums — or deny coverage altogether.

How to get car insurance with a suspended license

Depending on your location, you might be able to apply for a restricted license. A restricted license allows drivers with a suspended license to drive to the following places:

  • Doctors' appointments
  • Work
  • Court
  • To transport dependents

Restricted licensing is subject to state regulations and is offered on a case-by-case basis. The reason for your license suspension, the reason for your restricted license request, and your driving record are all considered as part of the application process. Restricted licenses are sometimes called occupational licenses, hardship licenses, or work licenses.

Not all car insurance companies will write a policy for a driver with a restricted license. If you run into issues, speak to an insurance agent directly: if major insurance companies deem you too high-risk, one of their subsidiaries might approve you. Also consider non-standard insurance companies. These smaller companies often work with high-risk drivers to get them insured.

The Zebra's licensed insurance agents can connect you with non-standard and standard companies. Call us at 1-833-768-7789 to see if we can find you insurance with a suspended license.

What to do with your auto insurance after a license suspension

If you’re already insured when your license is suspended, your insurance situation can get complicated. Although the short-term cost savings could be tempting, do not cancel your insurance coverage. Depending on the reason for your license suspension, maintaining insurance coverage will probably be a requirement of lifting your license suspension and returning to the road.

Can I lower my car insurance coverage if my license is suspended?

This depends. If you have a loan or lease on your vehicle, you most likely cannot. Because another entity (such as a dealership or bank) technically owns the vehicle, they will usually require high levels of coverage. If you lower your coverage, your bank or dealership might add “forced coverage.” If your dealership opts to force coverage, the insurance you removed will be re-purchased, and you'll foot the bill. Forced coverage is usually more expensive than maintaining your coverage.

If you own the vehicle outright, you can make changes to your coverage. If you’re absolutely not going to be driving your vehicle during your license suspension, consider removing your collision coverage. This coverage is designed to protect your vehicle if it is damaged when colliding with a fixed object. If you won't be driving the vehicle, you won't need this coverage.

Depending on where the vehicle will be stored, your comprehensive coverage might not be necessary either. Comprehensive coverage insures your vehicle against damage caused by weather, animals, theft, and vandalism. If you’re going to store your vehicle is a locked garage and you’re not worried about severe weather, this might be another option for you. This type of protection is called storage insurance/storage coverage. More information can be found here.

Removing your liability insurance will not be an option, however. Because liability coverage is required in nearly all states — not in New Hampshire — removing it would risk having your vehicle’s registration suspended. Considering you’re already dealing with your suspended license, this isn’t ideal.

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Additional resources: what to do after a suspended license

Getting affordable car insurance with a suspended license is going to take some work. While most insurance companies will not issue you a policy with a suspended license, you might find some help from a restricted license. Furthermore, online car insurance shopping might be difficult for you, which is why we recommend speaking to an insurance agent directly. You can ask them directly for recommendations. Feel free to give us a call at 833-768-7789 for personal assistance.

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