Will My Insurance Rates Jump If I Lose My License?

Will My Insurance Rates Jump If I Lose My License?

Because Texas has one of the largest numbers of registered drivers in the U.S., it is also a very large risk pool. That’s why drivers statewide tend to pay a higher auto insurance premium than the statewide average. This is particularly true in urban areas like greater Dallas-Fort Worth. It’s perfectly reasonable for you to want to keep your rates as affordable as possible.

Still, if you have frequent problems behind the wheel, then you might see your rates rise even if you don’t file a claim. One of the easiest ways to see a premium hike is to receive a driver’s license suspension. Consider why it is best to avoid these costly penalties.

Why License Suspensions Occur

There are a few different terms for losing your driving privileges. Each means a different penalty:

A license suspension is a probationary period during which you cannot drive. You'll be able to resume driving after you have followed the right steps to get your privileges back.
A revocation is a permanent loss of your driving privileges. These often last indefinitely, and you will have to reapply for a new license from the beginning to return to the road.
Some states place drivers on license restrictions. The driver can still drive, but they might only be able to do so at certain times, for certain distances, or to go certain places.

Why Do Losses of Privileges Occur?

A driver will lose their driving privileges when they commit an act that proves to the authorities that they cannot be trusted operating a vehicle. Some of the triggers of privilege losses include:

Severe or frequent at-fault accidents
Multiple speeding or reckless driving tickets
DUIs
Commission of a crime behind the wheel

At the time you lose your license, your auto insurer will be notified. You will likely face some challenges with your coverage afterwards.

Why Car Insurance Rates Rise After License Losses

You are not allowed to drive after losing your license, and you should not attempt to do so. The state now considers you a significant driving risk, and so too will your insurer.

To an insurer, the fact that someone is not allowed to drive is proof that they are a danger to others on the road. This means that those individuals likewise have a higher chance of filing an auto insurance claim. That is a cost risk to the insurer, and as a result they might have to raise your premiums to accommodate these risks. In some cases, the insurer might cancel your coverage.

If you hadn’t gotten a license suspension, you might have been able to avoid the rate hike. The bottom line is, you should strive to always keep your license active and unrestricted. You’ll be able to hit the road while keeping an affordable insurance rate.

Will My Insurance Rates Jump If I Lose My License?

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