Car Insurance Cancelled Due to Suspended L8cense in Delaware
| Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p... Full Bio → | Written by |
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UPDATED: Sep 22, 2021
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Here's what you need to know...
- A suspended license affects car insurance rates.
- If your license has been suspended, you can expect your car insurance rates to increase.
- You will most likely have to prove that you have car insurance before your license suspension is lifted.
- You can still compare insurance rates to find the best plan for you.
If my license is suspended, can I get car insurance? If so, how does a suspended license affect car insurance rates?
If you have a suspended license, car insurance rates are likely to be expensive. Many factors affect a driver's car insurance rates. Car accidents, getting pulled over for speeding, and being convicted of a DUI are all situations that would raise a person's car insurance cost.
These offenses can lead to a suspended license and will affect your ability to find cheap car insurance.
But how does a suspended license affect you? Does a suspended license make your insurance go up? With a suspended license, car insurance becomes a little more complicated. It's safe to say that you can expect a rate increase.
Continue reading to learn what car insurance companies will charge based on a suspended license.
Getting quotes from multiple companies for suspended license car insurance is the best way to keep those rates low, no matter your situation. Enter your ZIP code to compare suspended license car insurance rates right now.
How does a suspended license affect car insurance rates?
If you're wondering how to get car insurance with a suspended license, take a look at the breakdown below.
- Having a suspended license will categorize you as a high-risk driver, but there are plenty of companies that will still insure you.
- To find a high-risk insurance rate you can afford, you'll need to compare car insurance quotes online.
- You will have to meet your state's SR-22 insurance requirements to be properly insured after a suspended license.
You will likely have to spend more time finding affordable suspended license car insurance. But you're not considered uninsurable.
A suspended driver's license could disqualify you from your current car insurance policy, and it could make it difficult for you to get another one. If your driver's license is suspended, you'll need SR-22 insurance form through your insurance provider.
SR-22 document also known as proof of financial responsibility verifies that you bought a car insurance coverage required by the state for reinstatement of driving privileges. If you're required to get an SR-22, the traffic court will notify you by mail, while the insurance company will charge a fee for providing the certificate on your behalf.
Generally, you must keep the SR-22 and your insurance policy for three years. If there is a lapse in coverage, your provider is required by law to notify the Department of Motor Vehicles office. Your license will be suspended until your car insurance has been reinstated. Your SR-22 status will be removed once the prescribed amount of time has passed.
SR-22 auto insurance is one of the usual requirements for suspended license reinstatement. You may also have to enroll in driver safety courses and pay fines issued by your local Department of Motor Vehicles and court.
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How much do car insurance rates go up after a suspended license?
You can find cheap car insurance rates if you've had a suspended license, but it will not be easy. A suspended license increases car insurance rates by $120.25 per month on average.
- Your insurance company might cancel your coverage for a few different reasons.
- Not paying your rates is one reason your insurance may be suspended.
- Risky driving habits will almost certainly lead to suspended car insurance.
- Driving without insurance is risky and illegal, even during insurance lapse periods.
Car insurance companies are usually more than willing to work with you through financial difficulty if you're an established customer.
However, non-payment is not the only reason that an insurance company might cancel your insurance.
If you are current on your account and a long-standing customer, the only reason that your insurance might be suspended is if you have become too risky to insure for some reason.
Often, a driver has to show proof that they have car insurance lined up to get their suspended license back.
The suspended license will be shown on the person's driving history, affecting their car insurance rates for years.
This table shows you just how expensive your car insurance may become after having your driver license suspended. These numbers are based on averages around the country.
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It's easy to see from this table that a suspended license will increase your auto insurance rates by hundreds of dollars. Finding cheaper auto insurance will be a challenge.
How long do suspensions affect car insurance?
A driver's license suspension can affect your insurance for years. Depending on the violation, it can be on your record for more than five years.
Continue reading to learn how you can lower your car insurance rates.
How can I lower my car insurance rates after a suspension?
There are many things you can do to get lower car insurance rates, even with a suspended license on your record.
The first is to not automatically stay with the car insurance provider you had before your license was suspended. Get car insurance quotes from multiple providers to see if lower rates are available.
Once you find a car insurance carrier willing to give you a lower rate, it might be in your best interest to attend a defensive driving course.
Most car insurance companies award discounts to customers that have taken a driver safety course. This discount can help if you're paying higher rates because of a suspended license on your record.
Your willingness to take such a course shows your car insurance provider that you're taking the steps necessary to become a more responsible driver.
There are a lot of car insurance discounts out there, so do your research or talk to an agent about what you might be eligible for.
The most important thing working in your favor is time.
The longer a driver who has had a suspended license goes without having any other violations on their driving record, the better.
After some time passes with no further infractions, car insurance providers might be more willing to lower car insurance rates.
You can also consider lowering your auto insurance coverage. If you are the only driver of your vehicle, you can consider just having comprehensive coverage since no one will be driving. Comprehensive coverage will help with any damages not from a collision, like theft, vandalism, or acts of nature.
What does car insurance look like after a driver's license is reinstated?
After a driver that had their license suspended for an extended period of time gets their license back, they might think that the hard part of the whole ordeal is over. However, often the trouble has just begun.
The first thing to consider is whether you can get SR-22 insurance with a suspended license. An SR-22 is a form provided by your car insurance company that states you have at least the minimum coverage required by law. Your car insurance provider will issue the form, but it generally means a big rate increase.
You will be required to show proof of insurance before your license will be reinstated in some states. This is definitely something to consider if your license was suspended due to failure to carry enough insurance to meet state requirements.
Depending on the state you live in, you will have to follow slightly different procedures for obtaining car insurance after having your license suspended. However, it's possible to purchase an insurance policy even though you currently carry a suspended license.
Terms and conditions will apply to obtain insurance and keep your policy. It won't come without added expenses. You will also have to pay all fines and fees associated with the suspension of your license. Even with a suspended license, you can still get full coverage.
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Do car insurance companies run your license?
Car insurance companies have to know whether you're a licensed driver. They'll use your driver's license to learn more about your driving record. If you can't present your driver's license, an auto insurance company may deny you coverage.
If you happen to have a poor driving record, some companies may deny you coverage. If you've had a suspended license, The General Insurance may be more willing to work with you than other companies.
Can a car insurance company suspend your license?
Does GEICO suspend licenses? Do other companies? Car insurance companies like GEICO can't suspend your license. Only the DMV can suspend a license.
What is the suspended license car insurance protocol?
Can someone with a suspended license get auto insurance? Suppose you're in the market for car insurance but currently have a suspended license. In that case, you should begin by comparing car insurance rates from different insurance agencies.
You can do this online in just a matter of minutes. As part of your basic information, you'll have to enter that you currently have your license suspended.
Some companies will not offer policies to those with a suspended license. However, you'll still have many other companies to choose from who will offer insurance. Most companies will issue a temporary car insurance policy for approximately 45 days.
Within 45 days, you'll have to prove that you're in the process of having your license reinstated. You'll also have to obtain that license by the end of the time or your policy can be canceled.
Some companies won't stipulate how long you have to obtain a reinstated license or require proof of your attempts to reinstate your license. These companies will often charge you even more for your policy.
Of course, if you're willing and able to pay the right amount, you will not need to worry about terms and conditions. Insurance, after all, is a money-making industry.
Other procedures and steps you may need to follow when you apply for insurance after having a suspended license include:
- Taking a defensive driver safety training course
- Applying for a temporary driving permit before having your license reinstated
- Keeping your driving record clean to avoid termination of your policy and eventually lower your rates again
Each state will be different so make sure to find out the rules where you live.
What is SR-22 car insurance?
Most states won't allow you to get your license reinstated until your insurance company has provided an SR-22 form demonstrating that you're carrying sufficient insurance as required by law in that state.
There will be a designated period of time during which you will have to maintain the SR-22 requirement.
If you move out of state, you will still need to prove to the state you filed the SR-22 in that you are meeting the requirements until that time period has elapsed.
The only states that do not require an SR-22 form filing are:
- Delaware
- Kentucky
- Minnesota
- New Mexico
- Oklahoma
- Pennsylvania
- New York
- North Carolina
But the majority of states do require it.
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What are the effects of having a suspended driver's license?
Sometimes a person will have their driver's license suspended if they have misused their car. Someone who constantly ignores the traffic laws is convicted of DUI, or has been involved in several at-fault accidents can have their driver's license suspended. You can also get a suspended license due to your insurance lapsing in some states.
How long does a suspended license affect insurance? A suspended license can affect your car insurance policy for up to three years, even if you've reinstated your driver license.
A suspended driver's license can cause all kinds of problems. On the surface, it might just seem like the driver is unable to drive until the suspension is lifted. Most people don't realize how much not being able to drive will affect their life. Read on to learn more about car insurance after a suspended license.
How will having a suspended driver's license affect me?
The obvious problem is that you won't be able to drive to work, school, or anywhere else you need to go. However, there are other, less obvious situations that not everyone thinks of at first.
Public transportation might be an option for some. Someone who lives in a small town or a place that doesn't have a significant public transportation system would have to rely solely on the other drivers.
A person with a suspended license can become a burden to their friends and family.
What happens if you drive without a license or car insurance?
If the suspended driver decides to ignore the suspension and drive anyway, they put themselves at great risk. If you get caught driving with a suspended license, it will affect your insurance even more.
According to the Oregon State Bar System, anyone who's caught driving with a suspended driver's license could have their suspension period extended. Also, they could lose their driver's license permanently, or they could go to jail.
Another thing to be aware of is that you don't want to let your car insurance lapse while your license is suspended. Most states' laws require that you carry at least minimum liability coverage.
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What happens if you get in a wreck with a suspended license?
Will car insurance cover an accident if I have a suspended license?
This can be complicated. If your license is suspended, you shouldn't drive any vehicle. Therefore, an accident with a suspended license may not be covered by your insurance. Driving with a suspended license may result in your license being revoked.
Having a car accident with a suspended license can greatly increase your troubles. You can face more serious charges, possible jail time, and greater fines. It's also not a given that your insurance will cover an accident with a suspended license.
It's also important to note that driving with suspended car insurance or no proof of insurance will make matters worse.
Driving without car insurance can have serious consequences. This table breaks down by state the penalties you might see if you are caught driving with no car insurance.
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Make sure you speak with your car insurance company to ask if you are still covered. This will make your transition back to driving that much easier.
Having your driver's license suspended comes with its own set of challenges. High car insurance rates don't have to be one of them. The best way to get the best coverage at the cheapest rate is to get multiple quotes.
The good news is that you can start right now. Compare car insurance rates after a suspended license by entering your ZIP code in the comparison tool above.
Can you buy, register, or rent a car with a suspended license?
You don't need a license to buy a car, but you won't be able to drive it off the lot. You will need someone else to provide insurance and drive the motor vehicle until your license is reinstated. You will also need that person to help you register the car, which also requires insurance.
Rental car companies will not allow you to rent a car without a license.
What are the reasons for a suspended license?
Driver's licenses can be suspended for various reasons, and they each may have a different impact on your car insurance.
For example, suppose your license is suspended because of drunk driving. In that case, your car insurance company will consider you a high risk and charge you more money.
If your license is suspended because of past-due child support, then your insurance agent may or may not raise your rates based on your credit score or other financial factors.
Every state has different laws, but there are similarities in licensing, suspension, and revocation.
Leaving the scene of an accident or not filing a police report for an accident is also a cause for license suspension. Other reasons include excessive speeding and reckless driving.
Your license can also be suspended for failure to respond to a traffic court summons or for not paying your fines.
Multiple violations could lead to a driver's license suspension. Sometimes minor infractions may result in your license being suspended or revoked when combined over several occurrences. (Is revoked and suspended the same thing? No – revocation is permanent.)
Other violations carry a much stiffer penalty and result in the suspension or revocation of your license after just one instance.
Violations that may lead to a license suspension include:
- Excessive speeding
- Failure to obey traffic signs or lights
- Failure to signal
- Failure to wear your seatbelt
- Passing a stopped school bus
- Failure to yield the right of way to a pedestrian in a crosswalk
- DUI/DWI
- Vehicular homicide
- Reckless driving
- Driving without proper insurance
Having your license suspended for any of these reasons does not mean you will be denied insurance. However, you will automatically be seen as a high-risk driver to insure. Once you're placed in the high-risk category, you'll find yourself paying much higher rates.
Violating traffic laws does not simply mean paying a fine anymore. Car insurance costs after a license suspension are expensive, but this is a cost you will have to find a way to pay if you need to get your license reinstated.
The good news is that if you keep a clean driving record, you can begin to lower your rates once again.
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Should you suspend your car insurance?
What happens if you suspend your car insurance? Do you even need to have car insurance if your license is suspended?
When you suspend your car insurance, it means you've paused your car insurance coverage but haven't canceled your policy.
We want to be clear that car insurance for a restricted license is not the same as a suspended license. A restricted license is designed to restrict specific drivers from driving at night or under other conditions.
If you have a suspended license, there may be little reason to insure your car, unless it is driven by someone else.
If you are the only driver in the car and your license gets suspended, you may want to think about suspending your insurance.
However, before you call your agent and request a temporary suspension, think about the advantages and disadvantages.
If my license is suspended in the middle of my car insurance policy, am I still covered? The answer is probably not although your car insurance will still be active. Most insurance companies put a clause in the policy stating insurance won't cover you if you are driving with a suspended license.
However, if you have more than one driver on the policy, your policy will still cover the additional drivers.
If your car insurance doesn't get suspended automatically with your license, then you have the option of suspending your insurance.
While this saves you the unnecessary expense of insuring a car you cannot drive, it means that getting insurance again could be difficult and more expensive.
Some insurance companies allow you to place a hold on your insurance.
This hold can be done for various reasons, such as your car being out of commission while traveling overseas.
Check with your agent about your options. It's not easy to obtain insurance with a suspended, so it may be easier to keep the insurance you have and keep paying your rate, even while the car is not being driven.
What are other issues that may result in suspended car insurance?
Let's review some other problems that could lead to your insurance company suspending your coverage.
- Multiple claims – If you have multiple incidents, your company will reevaluate and possibly suspend your policy. Typically, they will simply refuse to renew your policy at your renewal time rather than canceling your policy mid-contract.
- Too many points – If you sustain a lot of points on your driver's license, then your insurance company may choose to suspend your car insurance. Your policy will not be renewed rather than being dropped in the middle of your policy.
- Bad credit score – Most insurance companies won't suspend your car insurance if your credit is bad. They will charge you more for their services. However, bad credit is one of the reasons that they can deny you coverage.
Make sure you stay on top of your driving record and credit history to keep your car insurance rates low.
What should you do about your suspended car insurance?
If your car insurance is suspended, car insurance companies are required by law to tell you why they won't cover you any longer.
You do have to request this information in writing if you consider filing a complaint against the company.
If your insurance has been suspended because of high-risk driving, talk to your insurance company about taking classes that will allow you to get reinstated.
Many insurance companies have approved courses that they encourage their drivers to take. If you take these courses to show that you are changing your habits, the insurance company may reconsider suspending your coverage.
However, there may be nothing you can do about your suspended car insurance with your current company.
If that's the case, you can start getting quotes from other insurance companies to see what else is available.
Car insurance companies will check your claims history using the Comprehensive Loss Underwriting Exchange (CLUE) database. If you've filed a lot of claims, it may be more difficult for you to find coverage, but it won't be impossible.
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How does a suspended license affect car insurance: The bottom line
Although you can obtain car insurance when your driver's license has been suspended, you should avoid having your license suspended at all costs.
Safe, defensive driving could save your life or someone else's, and it can also save you a lot of stress and money in the long run.
Keep that in mind the next time you are running late and speeding down the highway or thinking about having that extra glass of wine before driving home from the office party.
Avoiding a DUI or other high-risk driving behaviors is worth it.
If you have a bad driving record, you may be facing a denial of insurance from several auto insurance companies. Fortunately, there are still a couple of other options for you to consider.
Your first option is to check out high-risk insurance companies. Some companies specifically write policies for people with DUIs, although they usually specialize in SR-22 cases. The General Insurance is known for giving policies to drivers with a suspended license.
These companies are far more expensive than traditional insurance because their clientele is made up of high-risk drivers.
Another option is to check to see if your state offers state-sponsored auto insurance. Not every state has this available, however.
No matter what your situation happens to be, you need auto insurance quotes before purchasing your insurance. Shop around to compare suspended license car insurance quotes.
Find suspended license car insurance companies by entering your ZIP code in the free online quote tool below.
Frequently Asked Questions: Suspended License Car Insurance
These are some of the more common questions asked about driving, suspended licenses, and car insurance.
#1 – Can someone drive my car if my license is suspended?
Yes, as long as your car insurance and vehicle registration are current, a licensed driver should be able to drive your car.
#2 – Can I get car insurance if my spouse has a suspended license?
Yes, you can still get car insurance coverage if your spouse has a suspended license. However, you might want to look into getting a separate policy since rates can be factored together.
#3 – Is a suspended license still considered a valid license?
It's valid, but specific conditions must be met to get your license reinstated.
#4 – Why did my license get suspended?
Your license may have gotten suspended for a gap in car insurance coverage, too many accidents, too many traffic violations, a conviction of reckless driving, or a conviction of DUI/DWI.
How can I find out if my license is suspended? If you don't know if your license was suspended, check with your local DMV.
#5 – What is the best car insurance company for high-risk drivers?
GEICO and The General Insurance have the best insurance for high-risk drivers.
#6 – Can you get a license suspension reduced?
Yes. A first-time offender may have their suspension reduced. For example, your license suspension can be reduced from 120 days to 60 days if it's your first offense.
Related Links
Car Insurance Cancelled Due to Suspended L8cense in Delaware
Source: https://www.carinsurancecomparison.com/car-insurance-rates-after-a-suspended-license/