Motorists that plan on operating an automobile will more than likely be in need of an auto insurance policy, and the same may apply for those who wish to own motor vehicles and maintain registration within any given state; this may be the case whether the vehicle owner is licensed or not. Although many individuals who are unlicensed may see no real reason to pay to cover an auto that they do not intend on driving, many states require this as way to keep a vehicle legally registered. Certain states will suspend a vehicle’s registration upon realizing that it is uninsured and penalties and fines may have to be paid in or to have registration reinstated.

Some vehicle owners may still need to cover automobiles even without being licensed. One such reason to do so is if a motorist has had their driving privileges suspended, but are financing an automobile. Most financial institutions will require customers to maintain vehicle policies for the length of the loan as part of the contract; therefore, either purchasing or maintaining car insurance with no license may be necessary. In many cases, if a lender finds out that the financed car is not insured, they can place what is known as “forced insurance” on the auto and charge the cost to the borrower. If a lender takes such an action, the cost of the policy will likely be much higher than if the consumer had obtained one of their own.

Additional Reasons to Get Insurance with No License

There are many individuals who experience having driver’s licenses suspended or revoked and dependent on the reason, proof of auto insurance may need to be obtained and submitted in order to have driving privileges reinstated. In some cases individuals will need to maintain coverage for a certain length of time to keep licensing active. For instance, if a motorist has been convicted of driving under the influence of drugs and/or alcohol, they may be required to obtain an SR-22 certificate, which show proof of financial responsibility and must be filed with the motor vehicle department for a specified time period; if there is a lapse in coverage the suspension may be reinforced.

There are individuals that may not have a driver’s license, but are still authorized to drive. Motorists that are visiting from another country are generally allowed to operate an automobile while in the United States; however, they may be required to be insured in order to do so, and if not, it may be in their best interest to do so in order to absorb some of the financial burden of being involved in a traffic accident, especially in a foreign land. In addition, an authority such as the Utah Department of Public Safety allows individuals who are unable to establish a legal presence and are ineligible for a US social security number to obtain a Driving Privilege Card (DPC). Although not a driver’s license, these motorists are able to drive and are advised to obtain an auto insurance policy.