Do You Need Car Insurance When You Get Your License?

Determining the necessity of car insurance when you obtain your driver's license can be confusing, especially in states where specific requirements may not be immediately clear. Let's break down the key points and explore what you need to know.

Insurance Requirements with a Driver's License

In Indiana: No insurance is required to qualify for and have a driver's license. However, once you start driving a vehicle, insurance requirements come into play.

Across the USA: Most states require car insurance for drivers, even if they don't own a vehicle. This means that if you plan on driving, regardless of ownership, you should have the proper coverage.

Car Insurance as a Registered Owner

John Geare highlights an important point: you must have insurance if you own an automobile or motorcycle. The requirement exists whether you are driving the car or not. For anyone operating a vehicle on public roads, having valid insurance is mandatory.

However, there's an exception when you don't own a car but plan to drive occasionally. In such cases, it's advisable to get a non-owner's insurance policy. These policies are often affordable and provide peace of mind for both the driver and the lender.

Driving Someone Else’s Vehicle

When driving a vehicle that doesn't belong to you, always ensure the vehicle is insured. Many insurance companies offer non-owner's policies which can be added to existing renter's or homeowner's insurance policies at a discount.

Common Scenarios:

Uninsured or Expired Insurances: It's not uncommon for vehicle owners to 'forget' to maintain insurance registration and inspections. This leads to unexpected fines and legal issues. Co-Driving Agreements: Drivers who borrow cars from friends, family, or car-share services should have non-owner's insurance to avoid complications.

Insurance Rates and Claims History

Insurance companies use various factors to determine rates, including a driver's claims history. Young drivers with newly obtained licenses don't have much of a claims history, which can be advantageous. However, older drivers without an insurance history might fall into the "assigned risk" pool, where rates can be extremely high due to past issues such as DUIs, felony reckless driving, or multiple total loss accidents.

Drivers who have held a valid license for several years, have been maintaining non-owner's insurance, and have no history of accidents or violations are likely to get more competitive and affordable rates when they finally get their own car and take out a full insurance policy.

Conclusion

While car insurance may not be strictly required just because you have a license, it's highly recommended if you plan on driving. Whether you own a car or not, knowing your obligations and understanding the benefits of insurance can save you a lot of hassle and potential legal issues in the future.