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How to get car insurance with no driver’s license?

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What is car insurance?

A car insurance policy is nothing but a contract between you and the insurance company. In agreement that you will pay certain premiums, the insurance company will pay up to a limited amount to cover your financial losses in case of an accident or any other loss. An insurance premium is the amount of money a person or any business pays to the insurance company in exchange for coverage for your Car, healthcare, home or life insurance.

Why do you need Car insurance?

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car insurance

Most of us are not always financially well. Accidents, just like any incidents happen anytime resulting in losses. Suppose you are at fault in any road traffic accident. In that case, you may find yourself sued for hefty sums of money to pay for the losses you caused to people’s property, medical bills due to caused physical injuries, and large sums of money to repair damaged properties. It is a requirement by all 50 states in the USA to have liability coverage before you are allowed to hit the road. Your car insurance will kick in to cover you in case of at-fault accidents you are involved in while enjoying your ride. If you do not have any coverage, you will be required to pay for the losses you caused out of your pocket, a situation many of us are prepared for.

What are the types of car insurance?

They are six major types of car insurance you will most likely buy from your car insurance company. These are;

  • Auto liability car coverage policy
  • Uninsured and underinsured motorist coverage.
  • Comprehensive coverage
  • Collision coverage.
  • Medical payment coverage.
  • personal injury protection coverage policy.

What is an Auto liability car coverage policy?

Liability coverage pays for property damage or property loss when you are at fault in an accident. This policy typically pays the third-party losses but not you. It is a requirement by almost all states in the USA before you drive. This policy is divided into 2 sections ie property damage and bodily injury coverages. Property damage coverage pays for any people’s property you will damage, while Body injury pays for medical and death bills of the 3rd party.

What is Uninsured and underinsured motorist coverage?

Uninsured motorist liability will protect you if you are involved in an accident with an at-fault driver who has no liability car insurance. According to the data available today, more than 14% of the drivers have no insurance coverage meaning that, every one of us is at risk of being hit by an uninsured driver. In such a case, your uninsured policy will offer you protection. On the other hand, an underinsured car policy covers you if you are involved in an accident with a driver who has little coverage to pay for all your losses. For instance, if you drive an expensive car, you really need this policy to protect your high-cost ride.

What is Comprehensive car insurance coverage?

We all know we can suffer losses from non-accident situations. For instance, your car can be stolen, could suffer vandalism, be destroyed by hailstorms, falling objects etc. In such scenarios, comprehensive car insurance will come into play to cover your losses. What you need to know is that, Comprehensive car insurance carries a deductible. A deductible is the amount of money you will pay out of your pocket before your company covers the loss. For instance, if you chose a $1000 as your deductible and you suffered a $3000 loss. You will pay $1000 and your insurance company pays the remaining $2000.

Choosing a higher deductible is one of the ways you could try if you need to pay small premiums. But, always chose a higher deductible well knowing you will fork out large sums of money in the case of loss.

What is Collision car insurance coverage?

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car accident

Collision coverage will help to replace or repair your car irrespective of you being an at-fault driver in the accident. Collision coverage typically covers you but not the third party. This is almost the opposite of liability insurance which helps you cover losses you caused to the third party. Just like comprehensive car insurance, Collision coverage carries a deductible you will pay before your insurance company kicks in to play its part. If you are financing your car or taking a car loan, you will most likely be required to buy this policy. However, if the car you are driving is very old, I recommend you drop this policy because the company pays the actual value of the car which will most likely be less than the charged premiums.

Medical payment coverage- car insurance

Irrespective of who caused the accident, medical payment coverage pays you or your passenger’s medical bills in an accident. This is not mandatory in many states, so you are free to drop it as long as you have enough money to cover it yourself. You could also drop it if you already carry MedPay.

Personal injury protection coverage policy.

Regardless of who is an at-fault driver in the accident, personal injury protection covers medical expenses for you or any person travelling in your car. It will pay medical bills or expenditures in case of death. It also covers you if a car hits you while walking on the streets.

In addition, this policy covers your losses due to failure to work as a result of the accident, funeral services, lost wages etc,.

How to get car insurance with no driver’s license?

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Drivers’ license

It is a requirement to have a valid driver’s license before you sign your policy with your insurance company. Situations that may lead you to buy car insurance when actually you have no driver’s licence include:

  • If you only own a driver’s permit.
  • If the licensed driver can not afford to buy their own insurance coverage eg an under 18-year-old.
  • If your car is in storage or is always parked.
  • If you are unable to drive anymore but need someone else to drive your car. You will list that person as a primary driver.
  • If you plan to sell your car soon, so you actually temporarily own the car.
  • If you want to avoid penalties due to a lapse in your car coverage. A lapse in coverage leads to higher renewal premiums.

The best way to get coverage without a driver’s license is to shop around and get the best offer. Not all companies offer that coverage but, you will at least land on a few companies with adjustable policies to cover you. But, in most cases, you will not be allowed to include your name on the policy, and should you get into an accident while driving your car, the policy will not cover such losses.

A licenced primary driver will be required on the policy for the insurance company to determine the premiums. If the driver you list as a primary driver has poor driving records, it will result in higher payments.