There are quite a few reasons why you would lose your license, including a DUI, refusing to pay for a ticket, or driving without insurance. Once you lose your license, there is a chance that your auto insurance company will cancel your insurance. Insurance companies weigh risk versus reward, and a driver with a suspended license is very risky. Choosing not to renew your service protects the insurance company from any liable damages that you may cause. Cancellation affects other people on the policy as well. If you allow more people than yourself to be on your insurance, they will need to open a new policy without you involved.
You lost your license, but you still have a car. You may not need liability, roadside assistance, or any other coverage that covers accidents while driving. However, you should consider getting comprehensive coverage. Comprehensive coverage revolves around accidents that are outside of your control, such as flooding or a tree falling on your vehicle.
When Will My Insurance Company Find Out About My Suspended License?
Around renewal time, your car insurance company pulls a report on your car. That report’s content includes tickets, claims, registrations, and whether or not your license is suspended. Once they receive this report, your auto insurance company may choose not to renew or immediately cancel your policy. An insurance company will not cover most policies if your license is suspended. They do not want you driving.
However, an insurance company may still sell you comprehensive coverage. In this case, you will be required to keep your car in storage. The insurance company will not cover you if you drive under a suspended license. Comprehensive coverage includes accidents outside of your control or theft. It will never cover a driving-related accident.
Why Would I Need Car Insurance If My License Is Suspended?
There are a few reasons to keep your auto insurance running, even without a license. For example, you may have other drivers on your policy who need insurance. To keep the insurance company from canceling the policy with the other policyholders, consider putting another main policy holder on your insurance. This may get complicated since the main policyholder needs to own the car that they are driving.
You may also choose to keep car insurance coverage if you want to avoid a coverage gap. A coverage gap will run your insurance premium up in the future, so keeping insurance is beneficial. If you plan on keeping your premium low, then staying on some type of auto insurance is recommended.
A final reason to keep your car insurance revolves around comprehensive insurance. Even if your car is in storage, there are other risks associated with owning a vehicle. You need protection from theft, flooding, fallen trees, fires, and anything else outside of your control. Comprehensive coverage keeps your vehicle insured against damages that you have no control over. It is possible that your current insurance company will let you keep your comprehensive coverage, as long as you stay out of the vehicle and never drive it.