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Icon CheckLast updated: October 18, 2022

   The Best Auto Insurance for No-License Drivers

See the top picks for nonlicensed drivers.

Best Overall
acceptance insurance logo

Founded in 1969 and now helping more than 200,000 customers across 15 states, Acceptance Insurance leads the pack of providers with options for nonstandard drivers.

Best for New Drivers
State Farm Logo

If you’re a driver with a learner’s permit, State Farm offers generous discounts and has many local agents across the country. Not to mention, State Farm has 100 years of experience assisting customers in attaining policies that meet their needs. Here is a breakdown to compare the top-four auto insurance providers for drivers without a license:

Drivers without licenses are considered nonstandard drivers. While there are no laws that state you must have a driver’s license to insure a vehicle, finding a provider that will accept unlicensed individuals can be tricky. Thankfully, a handful of insurers are willing to provide you coverage — licensed or not. We’ve gathered all the information on the best companies that provide no-license insurance coverage.

Comparison of the Best Auto Insurance for No-License Drivers

Insurer #1. Acceptance #2. State Farm #3. Direct Auto #4. USAA
What it’s best for Overall New drivers SR-22 drivers Military
Number of customers 200,000 87,000,000 Not listed 13,000,000
Year founded 1969 1922 1991 1922
Can file an SR-22? Yes Yes Yes Yes
Offers car storage insurance? No Yes No Yes
Offers non-owner coverage? Yes Yes Yes Yes’
Review None State Farm review Direct Auto review USAA review

Summary of the Best Auto Insurance for Seniors

  1. 1.

    Best Overall: Acceptance Insurance

  2. 2.

    Best Auto Insurance for New Drivers: State Farm

  3. 3.

    Best Auto Insurance for Drivers With SR-22s: Direct Auto

  4. 4.

    Best Auto Insurance for Military Personnel: USAA

Detailed List of the Best Auto Insurance Companies for Seniors

1. Best Overall - Acceptance Insurance
acceptance insurance logo

What We Like Most:

  • Accepts high-risk drivers
  • Bundle with renters', homeowners', or pet insurance
  • Good for those with bad credit

Acceptance Insurance prides itself on providing coverage for all types of drivers. The company started as a single desk in Texas in 1969 and now serves 200,000 customers in 15 states. It has over 700 agents ready to help you throughout more than 300 neighborhoods.

Acceptance is an excellent option for nonlicensed individuals because of its focus on nonstandard drivers and its long list of other policy types with which you can bundle. It also has a roadside assistance program that can refund your traffic tickets.

ProsWho It's Best For
  • pro
    Someone with poor credit
  • pro
    Someone who doesn’t own a car
  • pro
    Someone with a poor driving history
  • pro
    Someone who needs more than one type of insurance, such as homeowners or life insurance
ConsWho It's Not Best For
  • con
    Someone who needs car storage insurance
  • con
    Drivers who live outside of Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Mississippi, Missouri, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia

Options for Nonstandard Drivers

There are many reasons someone might be a nonstandard driver — including teens, seniors, drivers who have had their license suspended or revoked, people with excessive driving violations or DUI convictions.

Not every insurance company accepts nonstandard drivers, but Acceptance focuses on them. It doesn’t turn away motorists often and advertises specific discounts for bad-credit drivers, high-risk drivers, non-owners, seniors, SR-22 drivers, and teen drivers. The company even offers discounts for favorable behaviors.

  • Good grades: If you have a B average or higher in school and are between the ages of 16 and 24, the good grades discount is a viable option.
  • Loyalty: The loyalty discount is great for all types of nonstandard drivers — the longer you stay with Acceptance, the greater your discount.
  • Safe driver: The safe driving discount is worth looking into if you have a good driving record. We recommend this discount to those with bad credit, seniors, and teens as long as they have good driving records.

Bundling Options

Need more than just auto insurance? You may be looking to bundle your insurance options. In that case, Acceptance offers a handful of other protections.

  • Renters insurance: If you’re renting a home or living space, renter’s insurance offers personal property and liability coverage. Personal property covers the cost of repairing or replacing any of your personal items, such as clothing or furniture. Liability covers the cost of damage to the landlord’s property or a guest’s medical bills if you’re liable for their injuries.
  • Homeowners insurance: Homeowners insurance covers the cost of damages caused by fires, theft, vandalism, smoke, and floods. Acceptance offers coverage for your personal belongings as an add-on, such as an engagement ring, to a homeowners insurance policy.
  • Vehicles for sport: Acceptance provides coverage for motorcycles, snowmobiles, travel trailers, off-road vehicles, and water vehicles. Customize your outdoor vehicle insurance plan to your needs by choosing the Saver, Plus, or Elite plan. Here is a breakdown of what each plan covers:
Features Saver Plus Elite
Safety apparel Yes Yes Yes
Towing No Yes Yes
Roadside assistance No Yes Yes
First-accident forgiveness No Yes Yes
Optional equipment and customizations No Yes Yes
Diminishing deductibles No No Yes
Pricing Least expensive Midrange Most expensive
  • Life insurance: Acceptance offers term life insurance and whole life insurance. Term life insurance is ideal because it lasts for a set period of time, while whole life insurance is typically more expensive and covers you for your lifetime.
  • Mexico tourist auto insurance: If you take your vehicle across the Mexican border, your regular auto insurance won’t follow you. However, Mexico tourist auto insurance guarantees coverage for your car, truck, motorhome, travel trailer, RV, ATV, or UTV while you drive in Mexico.
  • Commercial insurance: Acceptance offers many types of commercial insurance, including commercial liability umbrella, commercial vehicle, general liability insurance, inland marine, professional liability insurance, business owner’s policy, property insurance, surety bonds, and worker’s compensation.
  • Pet insurance: Humans are not the only ones who need insurance coverage. Acceptance boasts three policy types for your four-legged friends, plus add-ons. Here are the company’s pet insurance options:
Pet insurance plans Accident only Accident and illness Embedded wellness (wellness/preventative care) Endorsements/add-ons
Medical treatment after a pet accident (broken bones) Yes Yes Yes No
Major illnesses, infectious diseases, cancer, digestive issues, allergies No Yes Yes No
Vaccinations, heartworm tests, rabies, flea/tick prevention, teeth cleaning No No Yes No
Cancer coverage, acupuncture, physical therapy No No No Yes
Dental disease; preexisting conditions; behavioral issues; routine checkups/preventative care; infection diseases like canine hepatitis, feline immunodeficiency virus; infections from ticks, worms, and fleas; pregnancy; hip dysplasia; grooming No No No No

This bundling can be useful, as nonstandard drivers typically have higher premiums.

TIP:


Bundling options are unavailable for telemedicine and hospital indemnity — two other coverage programs Acceptance Insurance offers. However, these are worth considering to keep all of your insurance policies under one provider.

All-Inclusive Roadside Assistance

Stuck on the side of the road? No problem. Acceptance Insurance offers roadside assistance, which you can add to your auto insurance policy anytime. Here are the options available through Acceptance:

Roadside assistance options Towbusters Towbusters Plus
Cost per month $13 $15
Mechanical first aid Yes Yes
Towing up to 25 miles from where you’re stuck Yes Yes
Locked-out-of-car assistance Yes Yes
Fluid delivery (does not cover the cost of fuel) Yes Yes
Tire service Yes Yes
Ticket repayment No $100 up to 2 times a year

$200 in legal fees

$250 toward traffic school

2. Best Auto Insurance for New Drivers - State Farm

What We Like Most:

  • Local agents
  • Rideshare insurance available
  • Discounts for having multiple cars

Founded in 1922, State Farm has grown to become the largest auto insurer in the United States by providing fair insurance coverage at affordable prices. Not only does it have a good reputation, but the company has local agents ready to help you in all 50 states.

Suppose you’re a driver with a permit working up to becoming a fully licensed driver. State Farm is easy to contact, offers a wide range of coverages, and provides significant discounts for those learning to drive — including young drivers.

ProsWho It's Best For
  • pro
    Students and teens for practice
  • pro
    Someone who needs a rental car or travel expense coverage
  • pro
    Someone who wants a larger provider with nationwide coverage
  • pro
    Someone who wants to bundle their home and auto insurance
ConsWho It's Not Best For
  • con
    People with bad driving records, as there are cheaper options for them elsewhere
  • con
    Military, as there are lower rates from other providers (such as USAA)
  • con
    Federal employees, because there aren’t specific discounts for them

Apps That Can Save You Money

Safe driving habits will save you money now and in the future when these practices result in a clean record. State Farm offers two apps to encourage and reward safe driving habits.

  • Drive Safe & Save app: This app tracks quick acceleration, hard braking, fast cornering, speeding, and distracted driving as you hit the road. The safer you drive, the higher your discount.
  • Steer Clear app: The Steer Clear app gives you an opportunity to track your driving hours. You and your driving mentors can access the app to prepare for your driver’s test. The app offers a safe driving certification for finishing five safe driving training modules. Once you receive your certificate, send it to your State Farm agent to apply the discount.2

Variety of Coverages

State Farms’ coverage options go beyond the basics of liability, medical, uninsured motorist, collision insurance, and comprehensive coverage. In fact, the provider offers a wide variety of add-ons.

  • Rental car coverage: This add-on covers the cost of replacing your vehicle when it’s in the shop under a covered claim.
  • Ridesharing coverage: If you work for a company like Uber or Lyft, your employer will insure you only when you have a paying customer in your car. It will not cover any time on the road spent between passengers. Fortunately, rideshare insurance coverage insures you when you don’t have a paying customer in your vehicle.
  • Emergency roadside assistance: Roadside assistance covers mechanical labor; towing; delivery of gas, oil, or battery; change of tire; and locksmith labor. You’ll have to pay your own labor costs after an hour of service.
  • Transportation expense coverage: If you’re in an accident more than 50 miles from home, transportation expense coverage will pay for meals, lodging, and transportation.

Large Local Agent Network

Walking through the insurance process on your own can be challenging when you’re a new driver. State Farm has 19,000 local agents across the country that you can meet with in person, online, or over the phone to discuss your options.

3. Best Auto Insurance for Drivers With SR-22s - Direct Auto
Direct Auto Logo

What We Like Most:

  • Low rates for high-risk drivers
  • Can pay in cash locally
  • Save money by bundling with life insurance

Direct Auto specializes in providing nonstandard auto insurance to drivers who may be considered high risk or need SR-22 certifications. Suppose you’ve been convicted of a serious driving violation and your license has been suspended. In that case, Direct Auto will help you file for an SR-22 certification and will provide you with the insurance coverage you need.

No matter what your driving history looks like, Direct Auto wants to ensure you have access to the coverages and services you need. The company offers flexibility with pay schedules and prices, convenient contact options, various inclusive discounts, and a long list of bundling options.

ProsWho It's Best For
  • pro
    Someone who wants to bundle their policies
  • pro
    Someone who prefers flexible payment options
  • pro
    Someone who requires an SR-22
  • pro
    Someone who lives in Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Michigan, Mississippi, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, or Washington
ConsWho It's Not Best For
  • con
    People who need rideshare coverage
  • con
    Someone who needs car storage insurance
  • con
    Anyone who lives outside of Direct Auto’s 16 covered states

Inclusive Discounts

Being a nonstandard driver can take a toll on your wallet, but taking advantage of Direct Auto’s many discounts can save you up to 25 percent on your car insurance premiums.

  • Senior drivers: You can save up to 5 percent if you are 55 or older and complete a motor vehicle accident prevention course. Learn more about the best car insurance for seniors.
  • DynamicDrive: Save up to 10 percent if you download the Routely app and enroll in the DynamicDrive program. This app tracks your driving behavior and calculates a driver performance score. The safer you drive, the better your score; the better your score, the higher your discount.
  • Driver’s education: You can receive up to 10 percent off if you complete a qualifying accident prevention course.
  • Multi-car policy: Save up to 25 percent when you insure more than one vehicle on your Direct Auto policy.
  • Vehicle equipment: If your vehicle has qualifying anti-theft and safety features, you could see discounts up to 10 percent.
  • Prior coverage savings: You can receive up to 25 percent off your premiums if you can prove you’ve been with another insurance company for at least six months and have not had more than a 90-day lapse in prior coverage.3

Flexible Payment Options

When working with Direct Auto, you can customize both when and how you pay. Not only can you choose your payment date, but you can also choose how often you pay, your monthly amount, and how you want to pay, using these options:

  • Cash at your local Direct Auto or a partner payment location
  • Online payments with a credit or debit card
  • Autodraft
  • E-checks

Bundling Options

Direct Auto sells bundled policies to make your premiums cheaper. You can bundle your auto insurance with several other insurance types.

  • Motorcycle insurance: Direct Auto offers the basics of liability, comprehensive, collision, and uninsured motorist coverage for your motorcycle. Additionally, it features motorcycle passenger coverage, custom parts and equipment coverage, and motorcycle replacement coverage.
  • Term life insurance: With a pre-set amount of coverage up to $25,000, term life insurance can replace a loss of income, settle final medical and funeral expenses, pay for daily living expenses, and cover school bills. You can receive a discount up to 5 percent off your auto insurance when you buy auto and life insurance policies through Direct Auto.
  • Medicare program: Along with the government’s original Medicare program, Direct Auto offers Medicare Advantage, a Prescription Drug Plan, and Medigap. Medicare Advantage (Part C) combines Original Medicare with benefits like hearing exams, prescription drug coverage, and vision and dental care. The Prescription Drug Plan (Medicare Part D) is a stand-alone prescription drug coverage for people enrolled in Parts A or B. Finally, Medigap, or Medicare Supplement Insurance, will pay for copayments, deductibles, and coinsurance that Original Medicare does not cover. However, only people enrolled in Medicare Parts A and B are eligible for Medigap.
  • Accident medical expense: Accident medical expense covers any injury up to $10,000 per injury, whether it’s from a car accident or not. There is no limit on the number of accidents covered. Your accident medical expense coverage will kick in after your health insurance leaves you with high out-of-pocket costs. Simply meet a $250 deductible per accident.
  • Health marketplace: This free service matches you with the perfect health insurance plans and benefit advisors.
  • Mexico auto insurance: If you plan on traveling to Mexico with your vehicle anytime soon, look into Mexico auto insurance. Since your regular insurance stops covering you as soon as you leave the U.S., Mexico auto insurance makes sure you can legally drive in Mexico.
  • Commercial auto insurance: Direct Auto has a variety of coverages for different commercial vehicles, like liability, uninsured motorist, underinsured motorist, collision and comprehensive, medical payments, hired auto and employer’s non-ownership liability, fire, and theft coverage.
4. Best Auto Insurance for Military Personnel - USAA

What We Like Most:

  • Lowest rates for military members, veterans, and their families
  • Rideshare insurance available
  • Usage-based insurance available for low-mileage drivers

When 25 U.S. Army officers met up and decided to insure each other’s vehicles in 1922, USAA was born. Today, USAA insures 13 million military customers throughout the U.S. It’s a great choice for unlicensed military members who need coverage while storing or shipping their cars. Additionally, it’s a great provider for retired military members who own cars but have someone else drive them.

ProsWho It's Best For
  • pro
    Military members and veterans
  • pro
    Active-duty members stationed overseas who store their cars in the U.S.
ConsWho It's Not Best For
  • con
    Non-USAA members
  • con
    Civilians (i.e., not members of the military or veterans)

Domestic and International Insurance

USAA knows the ins and outs of insurance for military members. It understands that you may have to move often or go overseas for a permanent change of station (PCS), so it will protect your car while you’re away, offering liability coverage, personal injury protection, and vehicle storage.

DID YOU KNOW?


If you’re planning to bring your car with you when you move, you still need auto insurance when shipping your vehicle.

Bundling Options and Perks

Great auto insurance options are only a small part of the benefits USAA offers. It also provides these policy options:

  • Homeowners insurance
  • Renters insurance
  • Life insurance
  • Umbrella insurance
  • Small business insurance
  • Medicare plans
  • Health insurance
  • Vision insurance
  • Dental insurance

Additionally, USAA offers its members several perks.

  • Bank loans: You can manage a bank account, take out loans, or obtain a mortgage through USAA.
  • Investment options: Not only does USAA provide financial planning, but you can also set up a mutual fund, IRA, or a 529 education plan through the company.
  • Travel deals: Just for being a USAA member, you get discounts on rental cars, hotels, theme parks, and flights.
  • Online shopping: TurboTax, Active & Fit Direct, and a handful of other businesses partner with USAA to give you great deals.
  • Entertainment discounts: Certain phone plans, streaming services, and amusement parks are all discounted for USAA members.

Check if you qualify to be a USAA member by taking the qualification quiz on the company’s website.4

Methodology

Company Information

We chose the best auto insurance providers using company information, proprietary data, and institutional knowledge. We started by analyzing data from each company and the auto insurance it offers, including coverage options and discounts. Next, we analyzed third parties’ customer satisfaction and financial strength ratings from AM Best, the Better Business Bureau, J.D. Powder, Moody’s, the National Association of Insurance Commissioners, and S&P Global Ratings.

Proprietary Data

We have collected millions of data points over two decades of connecting people with auto insurance providers. We analyze the data and use it to identify which demographics of customers have the greatest success with which companies.

Institutional Knowledge

We have developed an institutional knowledge of insurers’ strengths and weaknesses. We consult with Paul Ford, president of insurance for Centerfield — the parent company of AutoInsurance.com. Paul has spent the last 30 years working in the insurance business with companies such as these:

  • Bankrate
  • Canadian Access
  • Capital One Insurance Services
  • Datalot
  • InsLogic
  • NetQuote

Frequently Asked Questions

Do I need a U.S. driver’s license to obtain car insurance?

You don’t need a U.S. driver’s license to get car insurance for your vehicle, but it can be very challenging to obtain insurance without one. A U.S. driver’s license helps providers check your driving history, a crucial factor in determining the cost of your premiums. If you have a foreign license and want auto insurance in the U.S., your rates will be higher because you lack past insurance coverage and U.S. driving history.

When should I obtain car insurance without a license?

The answer to this question depends on whether anyone is driving your car. If someone is driving your car in every state except New Hampshire and Virginia, you’ll need to get car insurance before they set off on the road. However, unless you have an SR-22, you don’t need insurance if no one is driving your car. That said, we recommend buying a policy anyway to protect yourself financially against vehicle theft, vandalism, natural disasters, and collisions to your parked car.

Do I need car insurance if I own a car but do not have a license?

If you own a car and do not have a license, you don’t necessarily need car insurance. If no one drives the car, you do not need car insurance. However, if someone decides to drive the vehicle, the car needs insurance coverage that meets your state’s standards.

How do I buy car insurance without a driver’s license?

  1. Check out which car insurance companies insure unlicensed drivers. These companies are often the smaller and more regional providers, such as Acceptance or Direct Auto.
  2. List yourself as an excluded driver on the policy and list someone else as the primary driver. While listing yourself as an excluded driver provides insurance for your vehicle, it does not cover an unlicensed driver in the event of a collision. Keep in mind that if you’re caught driving the vehicle, you will be driving without a license, which could result in vehicle impoundment or fines.
  3. If you can’t find an insurance provider who will accept you, add a licensed driver as the co-owner of your vehicle on the registration.
  4. If no one will be driving your vehicle, get parked car insurance. Parked car insurance only includes comprehensive coverage, which covers events like fires, theft, flooding, vandalism, falling objects, and damage from rodents or wild animals.

Citations

  1. Non-Standard Auto Insurance. Acceptance Insurance. (2022).
    https://www.acceptanceinsurance.com/our-products/auto-insurance/non-standard-auto-insurance/

  2. Save more with our auto insurance discounts. State Farm. (2022).
    https://www.statefarm.com/insurance/auto/discounts

  3. Car Insurance Discounts. Direct Auto Insurance. (2022).
    https://www.directauto.com/why-direct/get-discounts

  4. Join USAA. USAA. (2022).
    https://www.usaa.com/join/get-started/?product=join-now&wa_ref=join_now_from_why_join