How does my suspended license affect auto insurance?

A suspended license affects insurance, and it may be difficult to obtain low rates. The average rate of auto insurance for a good driver is around $79.58/mo. Auto insurance rates can increase 20 to 50% depending on why your licenses was suspended.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 18, 2021

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Things to remember...

  • A suspended license affects insurance coverage and rates
  • You should try to obtain a hardship license so that you can drive to the necessary places that are essential to your survival until you get your license back
  • Look for high-risk insurance while you are on a hardship license
  • You must have insurance to stay within the law and avoid further problems

How does a suspended license affect insurance? Well it’s going to be a challenging to find cheap rates. Most companies do review your driving record and depending on why your licenses is suspended it could raise your auto insurance rates 20-50 percent.

The best way to find which company will offer you the best rates is to use a quote comparison tool. Enter your zip code above to compare the best auto insurance for a suspended license today.

Effects of a Suspended License on Auto Insurance

A suspended license can affect you in a lot of ways. For example, not being able to drive will mean getting to work will be difficult and a trip to the grocery store will be a hassle.

It will also affect your bank account. There are fines, fees, and higher insurance rates involved with having a suspended license.

How does a suspended license affect your auto insurance?

How can car insurance companies see if your license is suspended? Does a suspended license show up on your driving record? Yes, a suspension shows up on your driving record. This matters because auto insurance companies look at your driving history when offering or renewing your insurance.

Many factors affect your car insurance cost. Your driving record is one of the most important factors in determining your insurance rates.

Let’s look at how your driving record affects your auto insurance rates. Just one ticket raises your rates substantially. A suspended license will raise them even more.

Average Annual Auto Insurance Rates Based on Driving History
Insurance CompaniesAverage Annual Rates with a Clean RecordAverage Annual Rates with One AccidentAverage Annual Rates with One Speeding ViolationAverage Annual Rates with One DUI
Allstate$3,819.90$4,987.68$4,483.51$6,260.73
American Family$2,693.61$3,722.75$3,025.74$4,330.24
Farmers$3,460.60$4,518.73$4,079.01$4,718.75
GEICO$2,145.96$3,192.77$2,645.43$4,875.87
Liberty Mutual$4,774.30$6,204.78$5,701.26$7,613.48
Nationwide$2,746.18$3,396.95$3,113.68$4,543.20
Progressive$3,393.09$4,777.04$4,002.28$3,969.65
State Farm$2,821.18$3,396.01$3,186.01$3,636.80
Travelers$3,447.69$4,289.74$4,260.80$5,741.40
USAA$1,933.68$2,516.24$2,193.25$3,506.03
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This video shows you some common factors used to determine your auto insurance rates.

 

Another thing to consider is if your auto insurance is up for renewal during a suspension, it won’t be renewed.

Most of the time, you will not be able to get insurance if you have a suspended license. Your state insurance regulations require that you have a valid driver’s license and car registration to get auto insurance coverage.

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What insurance companies will insure a suspended license?

Some situations allow you to obtain insurance even with a suspended license. Below are some of the most common ones.

  • Driving with hardship or restricted license – If you have extenuating circumstances that require you to drive a limited distance, (such as caring for an aging parent or similar situation), you may be able to get a temporary permit to handle these situations.
  • Driving to and from work or school – If you must drive back and forth from work or school and this is a matter of your livelihood or important to your well-being or future income, the court may allow you this exception to a license suspension.
  • Medical appointments – If you have medical appointments or someone else in your household has necessary medical appointments, you may be allowed to use your car for this purpose.

If you can get a permit for driving in these special circumstances even when your license has been suspended, you will be able to use this as an opportunity to obtain insurance. Since the court has granted you permission to drive in these instances and it is against the law to drive without insurance, you can get insurance.

Check with your current insurance provider to see if they offer coverage with a “hardship license.” If they don’t, you will want to look elsewhere for coverage that will allow for this situation. Explain the situation to a representative, and they can find a suitable policy for your needs until you get your normal license back.

If you are caught driving without insurance on a suspended license, it is possible you could have your license permanently revoked.

This table shows you the penalties for each state for driving without insurance. Use the search box to find your state.

Penalties by State for Driving Uninsured
StateFirst offense driving uninsured
AlabamaFine: Up to $500; registration suspension with $200 reinstatement fee
AlaskaLicense suspension for 90 days
ArizonaFine: $500 (or more); license/registration/license plate suspension for three months
ArkansasFine: $50 to $250; suspended registration/no plates until proof of coverage plus $20 reinstatement fee; court may order impoundment
CaliforniaFine: $100-$200 plus penalty assessments. Court may order impoundment
ColoradoFine: $500 minimum fine; 4 points against your license; license suspension until you can show proof to the DMV that you are insured. Courts may add up to 40 hours community service
ConnecticutFine: $100-$1000; suspended registration/license for one month (show proof of insurance) with $175 reinstatement fee
DelawareFine: $1500 minimum fine; license/privilege suspension for six months
FloridaSuspension of license and registration until reinstatement fee is paid and non-cancelable coverage is secured; $150 fee for first reinstatement
GeorgiaSuspended registration with $25 lapse fee and $60 reinstatement fee. Pay any other registration fees and vehicle ad valorem taxes due
HawaiiFine: $500 fine or community service granted by judge. Either license suspension for three months or a required nonrefundable insurance policy in force for six months
IdahoFine: $75; license suspension until financial proof. No reinstatement fee.
IllinoisFine: minimum of $500; License plate suspension until $100 reinstatement fee and insurance proof
IndianaLicense/registration suspension for 90 days to one year
IowaFine: $500 if in accident; Otherwise, fine: $250; community service in lieu of fine. Possible citation/warning if pulled over plus removal of plates and registration possible when pulled over without insurance and reissued upon payment of fine or completed community service, proof of insurance, and $15 fee; possible impoundment when pulled over
KansasFine: $300 to $1000 and/or confinement in jail up to six months; license/registration suspension; reinstatement fee: $100
KentuckyFine: $500 to $1000 fine and/or sentenced up to 90 days in jail; license plates and registration revoked for one year or until proof of insurance is shown
LouisianaFine: $500 to $1000; If in car accident, fine plus registration revoked and driving privileges suspended for 180 days
MaineFine: $100 to $500; suspension of license and registration until proof of insurance
MarylandLose license plates and vehicle registration privileges; pay uninsured motorist penalty fees for each lapse of insurance — $150 for the first 30 days, $7 for each day thereafter; Pay a restoration fee of up to $25 for a vehicle's registration
MassachusettsFine: $500 to $5000 fine and/or imprisonment for one year or less
MichiganFine: $200 to $500 fine and/or imprisonment for one year or less; license suspension for 30 days or until proof of insurance; $25 service fee to Secretary of State
MinnesotaFine: $200 to $1000 (or community service) and/or imprisonment for up to 90 days; License and registration revoked for no more than 12 months
MississippiFine: $1000; driving privileges suspended for one year or until proof of insurance
MissouriFour points against driving record; driver may be supervised; suspended until proof of insurance with $20 reinstatement fee
MontanaFine: $250 to $500 fine and/or imprisonment for no more than 10 days
NebraskaLicense and registration suspension; reinstatement fee of $50 for each; proof of insurance to remain on file for three years
NevadaFine: $250 to $1,000 depending on length of lapse; registration suspension — until payment of reinstatement fee and, depending on circumstances, an SR-22 (proof of financial responsiblity) if lapsed more than 90 days; reinstatement fee: $250
New HampshireNot a mandatory insurance state. Proof of insurance may be required as the result of a conviction, crash involvement, or administrative action. If you are required to file proof of insurance and vehicles are registered in your name, you will be required to file an Owner’s SR-22 Certificate of Insurance.
New JerseyFine: $300 to $1000; license suspension for one year; pay surcharges for three years in the amount of $250 per year
New MexicoFine: up to $300 and/or imprisoned for 90 days; license suspension
New YorkFine: up to $1500 if involved in accident plus $750 civil penalty; license and registration suspension – revoked for one year; suspension of license if without
insurance for 90 days; suspension lasts as long as registration suspension; Suspension of registration: equal to time without insurance or pays $8/day up to thirty days for which financial security was not in effect, $10/day from the thirty-first to the sixtieth day $12/day from the sixtieth to the ninetieth day and proof of security is provided. Or for the same time as the vehicle was operated without insurance.
North CarolinaFine: $50; registration suspension until proof of financial responsibility but 30-day suspension if in car accident or knowingly driving without insurance; $50 restoration fee plus license plate fee
North DakotaFine: up to $1500 and/or 30 days in prison; 14 points against license plus suspension; Proof of insurance must be provided for one year; license with a
notation requiring that person keep proof of liability insurance on file with the department. The fee for this license is $50, and the fee to remove
this notation is $50.
OhioLicense/plates/registration suspension until requirements are met and $100 reinstatement fee is paid; maintain special high-risk coverage on file with the BMV for three to five years; If involved in accident without insurance: all above penalties and a security suspension for two plus years and an indefinite judgment suspension (until all damages are satisfied)
OklahomaFine: $250; jail time up to 30 days; license suspension with $275 reinstatement fee. Police can seize license plates and assign temporary plates and liability insurance — in effect for 10 days and can also impound the vehicle. The cost of the temporary coverage is added to the administrative fee and any fines paid for plates to be returned. If car impounded, owner must also pay towing and storage fees.
OregonFine: $130-$1000 ($260 is the presumptive fine); If involved in accident — at least a one year license suspension; proof of financial responsibility required for three years
PennsylvaniaRegistration suspended for three months (unless lapse was for less than 31 days and vehicle not operated during that time); $88 restoration fee plus proof of insurance required to get it back; $500 civil penalty fee is optional in lieu of registration suspension plus $88 restoration fee — can only use this option once within a 12-month period
Rhode IslandFine: $100 to $500; license and registration suspension up to three months; reinstatement fee: $30 to $50
South CarolinaFine: $100-$200 or 30-day imprisonment; failure to surrender registration and plates when insurance lapses; license/registration suspended until proof of insurance plus $200 reinstatement fee
South DakotaFine: $100 and/or 30 days imprisonment; license suspension for 30 days to one year; filing proof of insurance (SR-22) with the state for three years from date of conviction. Failure to file proof will result in suspension of vehicle registration, license plates, and driver license.
TennesseePay $25 coverage failure fee within 30 days of notice; if not paid, then an additional $100 coverage failure fee with suspension or revocation of registration plus reinstatement fee of no more than $25
TexasFine: $175 to $350 fine; plus, pay up to a $250 surcharge every year for three years (may be reduced with certain requirements)
UtahFine: $400; license suspension until proof of insurance (maintained for three years) and $100 reinstatement fee
VermontFine: up to $500; license suspended until proof of insurance
VirginiaFine: may pay $500 Uninsured Motorists Vehicle fee to drive without insurance at your own risk. If this fee is not paid in lieu of insurance, all driving and vehicle registration privileges will be suspended until a $500 statutory fee is paid, proof of insurance is filed for three years, and a reinstatement fee (if applicable) is paid
WashingtonFine: Up to $250 or more
West VirginiaFine: $200 to $5000; license suspended for 30 days with reinstatement fees, unless there's proof of insurance and $200 penalty fee
WisconsinFine: up to $500
WyomingFine: up to $750 fine and up to six months in jail
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The penalties are stiff and mean that driving without insurance is simply not an option.

What is high-risk auto insurance?

One of the options you have if you are under a hardship license is to get high-risk insurance. If you have a hardship license, you are considered a high-risk driver. So you can qualify in this case but high-risk auto insurance is expensive.

If you have a temporary hardship license, your goal should be to get your regular license back. That way, you do not have the restrictions placed on you with the temporary license.

In the meantime, make sure that you follow all traffic laws and regulations including having sufficient insurance to cover the time that you drive under these limited conditions.

The last thing you need is to receive yet another citation for failure to provide and keep proof of insurance for your vehicle which could lead to permanent suspension of your license.

While you are working on getting your standard license back, you should shop around and compare policies and see what will work best for you with your current license. Since companies offer different rates, it might be possible to get cheap high-risk insurance.

Comparing high-risk auto insurance policies for a hardship license will give you a starting place when you look for insurance.

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What You Need to Know About License Suspension

There are many reasons that you may end up with a suspended license. Various incidents such as getting one too many speeding tickets, a DUI, or just accumulating too many points on your driver’s license can all add up to a license suspension.

A judge can suspend your license, or it may happen automatically in some states where you have accumulated too many points.

Your insurance company would have a record of how many points are on your driving record at any time so you could check with them if you have an insurance company.

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What are the reasons for a suspended license?

It’s important to know some of the reasons for a suspended license so that you can avoid it if this has not yet happened to you. A few possible reasons for suspension are:

  • Driving under the influence (DUI)
  • Unpaid traffic tickets or driving record points
  • Reckless driving charges
  • A lapse in auto insurance

You can generally void a license suspension by obeying traffic laws and keeping your insurance up to date.

What happens if you have no proof of insurance?

Ironically, one of the things that can prohibit you from getting car insurance is one of the things that can cause your license suspension. It is possible to receive a suspended license due to insurance not being valid or not having the proper paperwork.

Failure to show proof of insurance is a misdemeanor crime and can carry stiff fines, penalties, and loss of driving privileges. The penalty depends upon the statutes in your state of residence so be sure to know the law in your state regarding proof of insurance statutes.

What is the difference between a suspended license and a revoked license?

For those who have had their license suspended, it is important to understand that a license suspension is just a temporary thing.

A suspended license means that your driving privileges have been temporarily put out of service until such time that you can pay the driver’s license reinstatement fees and show evidence that you will obey the traffic laws. The reinstatement fee for a suspended license will vary by state.

Often this suspension is imposed as a three- to a six-month sentence by the courts. After this time, you can usually return to driving as normal.

If you have a revoked license, it means that you have permanently lost your driving privileges under your current driver’s license. You may not renew that driver’s license for any reason from that point on.

If you want to be reinstated as a driver, you have to go through the process of getting a new license and retaking the driver’s exam in your state all over again. Your old license can never be used again.

 

You need to get multiple quotes for auto insurance to make sure you are getting the best coverage and cheapest rates after a suspended license. Begin comparing auto insurance quotes by entering your zip code below. You might be surprised by how much you could save.

Frequently Asked Questions

These are a few of the more commonly asked questions about license suspension.

Will insurance cover an accident with a suspended license?

Insurance will probably not cover an accident if you are driving with a suspended license. They can deny the claim if you are driving illegally. You will also face additional legal penalties for driving with a suspended license.

Can someone drive my car if my license is suspended?

Yes, as long as the car is registered and insured a licensed driver can drive your car. There should not be an issue as long as legal obligations are met.

If your insurance gets canceled is your license suspended?

No, your driver’s license is not suspended if your insurance gets canceled, but you can’t drive the vehicle without insurance.

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