Unlicensed Drivers & Auto Insurance

My friend has auto insurance but has no driver's license. Will the fact that he has no license be reason for the auto insurance company to deny paying a claim?

I can imagine there are a number of people in this boat; some people don’t drive, yet they own a car and carry insurance and allow others to borrow their vehicle.  (My mother-in-law did that for a number of years after she stopped driving.)  Whatever the circumstances, as long as he’s been paying his premiums, the insurance company should cover the claim unless the policy includes a provision requiring only a licensed driver to be driving the vehicle in order to trigger coverage.  Check the policy wording to be certain.

The fact that he has no license is a matter for the police and the Department of Motor Vehicles and he would likely be cited and have to pay a fine (for a first offense).  Penalties, however, could be harsher if he continues to break the law and drive without a license.

Lori Mandell is an attorney, writer and editor. Her specialty areas include insurance, personal injury and estate matters.

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