It is never a good idea to drive without insurance and it’s illegal to do so. However if you are trying to figure out whether insurance will cover an unlicensed driver is yes it will cover everyone listed on the policy with exceptions. As long as the policy is active it will cover all drivers on the policy if they’re driving without a license. But a few exceptions exist that limit coverage to specific individuals only.
Insurance companies are in business to make money first and foremost. That means drivers who are considered higher risk have expensive auto coverage rates compared to safer drivers. But the cost of premiums can also rise due to drivers who have been given permission to drive the vehicle under the policy holder’s insurance coverage when the driver is not named as the main policy holder.
Other problems can arise due to a policy holder sharing a vehicle with another driver that they both operate but only the driver has a good driving record. Sharing a vehicle with someone that has no license or is considered an unsafe driver by the insurance company is a risk, especially when the bad drivers name is not listed on the policy.
It seems trivial to think an unlicensed driver would need insurance coverage since they are driving on the road illegally. It does happen and that is why insurance companies will diligently ask for a copy of your driver’s license before giving you an insurance quote. Car insurance companies always see it as a big risk and costly decision to insure an unlicensed driver and many times may refuse coverage altogether.
Insurance companies also have exclusion clauses built into premiums where excluding an unsafe driver in your family from the plan will lower your rates. This scenario is usually the case if your spouse or family member has recently received speeding tickets or their license was suspended. Never agree to exclude a family member from your coverage without considering the risks as a wreck may not be covered under the policy.
In New Mexico, driving without a license is a misdemeanor and is punishable by 90 days in jail and a $300 fine. You should be honest and upfront with an insurance company when someone on the policy is unlicensed as it could put you in a bad position finding insurance coverage in the future and if pulled over will face the penalty for driving without a license.
Call 207-4401 with your car accident case today if you were hit by an unlicensed driver in New Mexico.