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How a Suspended License Can Affect Your Insurance

2 December 2018 No Comment

If your license is suspended, it will not only affect your ability to drive legally for a certain period of time but it will have an impact on your insurance. Fortunately these days you may be able to get a suspended license insurance.

Higher Premiums

A suspended license becomes part of your driving record, and consequently it will affect any future insurance plan you’ll get. You should realize that if you have your driver’s license suspended, your premiums will become higher as well. It’s only logical, because insurance is based on the risk of payouts you represent. You’re a much greater risk of causing accidents on the road when you have been caught and penalized for reckless driving or DUI violations.

Should You Cancel Your Insurance?

At first glance, it may seem sensible to cancel your auto insurance during the time your license is suspended. After all, you’re not driving, so why would you need to pay insurance?

The problem with this approach is that when your driving privileges are restored and you go for new insurance, it won’t be that easy. The insurance providers will check your driving history, and your past suspended license will immediately put you into the “high risk” category. This means that you’ll be charged much higher premiums than ever before.

So, it may depend on how long your license is suspended. If it isn’t for a long time (unlike if it is suspended for a DUI), then you may want to consider continuing with the current auto insurance policy.

There is also the option of placing a hold on your current coverage. This is often an option granted for some people who will travel extensively abroad. However, not all insurance companies can extend this privilege for suspended licenses.

Hardship License

Even though your driver’s license has been suspended, you may still apply for a hardship license. You’re then able to drive in limited circumstances as long as you have a good reason to travel. Your hardship license may be granted if driving is the only way you can get to work or to run your necessary household chores. It may also be granted if you need to regularly drive to places where you get your needed medical care.

When you have a hardship license, your auto insurance takes effect and it’s a good thing that you didn’t cancel it.

How Much Will Your Premiums Increase?

You will have to pay a fee to have your driver’s license reinstated. That exact fee will depend on what kind of violation you did to get that suspended license. In normal cases, it may only cost $65 or so to have your license reinstated. But that goes up to $130 if you were guilty of a DUI violation.

After that, you still keep on paying for your sins, so to speak. Every time you violate a driving regulation, you get a point against your license. Often when you get too many points, that’s when you have your license suspended.

In some cases, if you accumulate the maximum 12 points, you may find your premiums increasing by as much as 340%. You really don’t want to violate driving regulations, because even a single point can drive your premiums up by 30%

Your suspended license may affect many other aspects of your life, including employment opportunities and getting a mortgage. So, the best thing you can do is to just avoid doing anything that could get your license suspended, as it’s not just inconvenient, but also very costly.

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