Will an Insurance Company Pay for a Car Accident if the Insured Person Driving Has an Expired License?
Having an expired license is a serious matter that can affect your insurance coverage and the outcome of an accident. If you or your friend were behind the wheel with an expired license, it's crucial to understand how it can impact claims and potential payouts.
Understanding the Legal Implications of an Expired License
Suspension of a license is a form of challan. If your license has been suspended, you are technically forbidden from driving for a certain period (usually three months). Driving with a suspended license can invoke legal charges and penalties.
A valid driving license is essential for legal operation of a vehicle. If the person driving does not hold a valid license or has a canceled/suspended one, the insurance company may refuse to cover the incident. Accidents involving individuals under the influence of alcohol or drugs often fall outside of standard insurance coverage.
Insurance Claims and Expired Licenses: What Happens Next?
An insurance company is unlikely to pay out if the driver is engaged in illegal activity, such as driving with an expired license. This would fall under breaking the terms of the insurance policy. In most cases, using an expired license can lead to the insurance claim being denied.
However, if the driving was necessary due to an emergency (such as rushing a loved one to the hospital), the insurance company might show some flexibility and consider the circumstances.
Third-Party Examples and Emergency Circumstances
If you are a third party in a car accident, and the other driver has a valid license and all documents in order, their insurance is likely to cover your damages. The same applies to their insurance company withholding payment for the at-fault party. If the at-fault party was a longtime customer who simply missed renewing their license, there’s a higher likelihood of them being covered. However, if the accident was due to other factors like driving under the influence or reckless behavior, the insurance company may not cover the claim.
Policy Wording and National Variations
The policy wording often states that the driver must have a valid and undisqualified license. In the UK, the policy typically includes wording such as " holds or has held and is not disqualified from holding a valid license...". This means that an expired license generally doesn't disqualify the insured from making a claim.
Nevertheless, if the insurance is only for a licensed driver and you are driving with an expired license, the insurance coverage may be nullified. If you breach your insurance policy through driving with an expired license, you will not receive any payment for the accident.
Insurance companies prioritize legal compliance above all else. With no valid license, there is no insurance protection, which simplifies their position when denying claims. It is essential to keep your license up-to-date to ensure you have adequate coverage and avoid potential legal and financial issues.