Last updated: May 4, 2026

Best Auto Insurance for No-License Drivers of May 2026

Q: Can undocumented immigrants or workers without legal status get auto insurance without a U.S. license?

Yes, undocumented immigrants and workers without legal status can often get auto insurance in the U.S., even if they do not have a U.S. driver’s license. Some insurance companies allow applicants to use a foreign driver’s license or an alternative form of identification, such as an Individual Taxpayer Identification Number (ITIN) or a matrícula consular card. The process and availability vary by state and insurer—some states are more accommodating, while others may require a U.S. license for coverage. Applicants should always contact insurers directly to discuss their specific situation, as online forms may require a license number by default.

Q: How do insurance rates for unlicensed drivers compare by state?

Insurance rates for unlicensed drivers vary significantly by state, largely due to each state’s regulations, insurance marketplace, and risk assessment methods. In general, unlicensed drivers — or those using a foreign license — can expect to pay higher premiums than standard drivers because insurers have limited or no access to their U.S. driving records. Some states with more competitive or inclusive insurance markets may offer better rates or more options, while others with stricter requirements may see fewer choices and higher costs. Local factors such as minimum required coverage, urban versus rural location, and insurer presence also affect price differences across states.

Q: What documentation is required when applying for no-license insurance?

When applying for car insurance without a U.S. license, applicants should be prepared to provide alternative forms of identification and supporting documents, which may include: A foreign driver’s license (if available) Identification such as an ITIN, passport, or consular identification card Proof of vehicle ownership (vehicle title or registration) Proof of residence (lease agreement, utility bill, etc.) If a primary driver other than the applicant will be listed, that driver’s valid license information Additional documentation if required by the insurer, such as proof of financial responsibility or an SR-22 for those with suspended licenses Because requirements can differ by insurer and state, we recommend contacting providers directly for precise guidance.

Q: 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. In this case, you may need to unregister the car or file an affidavit of non-operation. However, if someone decides to drive the vehicle, the car needs insurance coverage that meets your state’s standards.

State Farm, Progressive, USAA, Direct Auto, and Kemper are our auto insurance picks for car owners without a license.

Best for Teens

Editor's Rating:

4.9/5

Full Coverage Averages

Policy with a teen driver: $5,044 annually
Standard driver with clean record: $2,030 annually

Compare Quotes 866-563-6507

Best With a DUI

Editor's Rating:

4.7/5

Full Coverage Averages

With a DUI: $2,816 annually
Standard driver with clean record: $2,060 annually

Compare Quotes 866-651-1498

Best for Military and Veterans

Editor's Rating:

5/5

Full Coverage Averages

For a high-risk driver: $2,998 annually
Standard driver with clean record: $1,533 annually

Compare Quotes 855-439-0313

Ali Saleh is a copywriter with nearly 10 years of experience in content writing, editing, and journalism. Ali’s work has been featured on a number of notable sites and publications, including MSN, Business.com’s award-winning newsletter, and Groove Korea, South Korea’s largest English-print magazine. Today, he writes for dozens of brands, providing expert guides and informative articles on auto insurance, healthcare, recruiting technology, business, and more. Ali holds a Master of Fine Arts in creative writing from North Carolina State University.

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Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.

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We dedicate thousands of hours to analyzing the insurance market so you don't have to. Our editorial team comprised of dynamic writers, editors, journalists, and researchers, holds years of experience creating high-quality auto insurance content. Our work has been featured in USA Today, MSN, Yahoo, CBS News, and other local and national publications.

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Key Takeaways: Best Auto Insurance for No-License Drivers 2026

Although it’s an unusual situation, you can get car insurance without a license; however, fewer insurers offer it and rates may be higher.

Reasons to insure without a license include owning a stored/classic car, having a suspended license, or needing coverage for a family member to drive your vehicle.
Those with a suspended license may need to file an SR-22 to reinstate it — Direct Auto and Acceptance specialize in this.
High-risk drivers pay around $2,600 to $3,000 on average for full coverage.
State Farm, Progressive, USAA, Direct Auto, and Acceptance are our top picks for unlicensed drivers.

Summary of the Best Auto Insurance for No-License Drivers of March 2026

Best for Teens: State Farm
Best for Drivers With a DUI: Progressive
Best for Military and Veterans: USAA
Best for Drivers With an SR-22: Direct Auto
Best for Hard-to-Insure: Kemper

Comparison of the Best Auto Insurance for No-License Drivers

Company	Full coverage monthly average	Minimum coverage monthly average	J.D. Power Claims Satisfaction Study¹	SR-22 Filing	Car storage insurance	Non-owner coverage
State Farm	$169 (for a standard driver with clean record) $420 (for a policy with a teen driver)	$54	Above average	Yes	Yes	Yes
Progressive	$172 (for a standard driver with clean record) $235 (with a DUI)	$59	Below average	Yes	Yes	Yes
USAA	$128 (for a standard driver with clean record) $250 (for a high-risk driver)	$36	Above average	Yes	Yes	Yes
Direct Auto	$264	$78	Not rated	Yes	No	Yes
Kemper	$220	$100	Not rated	Yes	Yes	Yes

Why You Would Need Car Insurance Without a License

While it’s relatively uncommon to need car insurance if you’re not a licensed driver, there are a few reasons why you might find yourself in this situation. Here are some examples:

You’ve had your license suspended but are trying to maintain continuous coverage for when you are relicensed
You own a classic car that you need to insure even if you don’t drive itIn addition
You’re a senior who longer has a license but you need to insure your car so that an aide or family member can drive it
You’re a teenage driver preparing to get your license

Getting auto insurance if you don’t have a valid license can be challenging, and the process depends on your circumstances. In most cases, if you’re not legally able to drive, you’ll need to ask to be excluded from the auto insurance policy you purchase. This means that you are not considered an authorized driver and will not be covered under the policy, but other drivers will still be able to drive your vehicle.

If your license has been suspended, you may need to file an SR-22 and/or look for high-risk insurance, which will then allow you to get your license reinstated.

How to Get Car Insurance Without a License

Determine Why You Need Insurance. Start by identifying your reason for needing insurance—whether it’s to cover a parked or collectible vehicle, insure a car for a family member or caregiver to drive, or meet legal requirements after a license suspension.
Choose the Primary Driver. Since you won’t be driving the vehicle, you’ll need to name a licensed individual as the primary driver on the policy—usually someone in your household who will operate the car.
Request to Be an Excluded Driver. Ask the insurer to exclude you from the policy. This means you won’t be covered to drive the car, but the listed drivers will be fully insured.
Provide Additional Documentation (if needed). If your license is suspended, you may be required to file an SR-22 or FR-44 form as proof of financial responsibility. The insurer can file this on your behalf.
Finalize the Policy and Keep It Active. Once you’ve secured coverage, make sure to pay premiums on time and keep the policy active—especially if you’re trying to reinstate a suspended license or maintain coverage for another driver.

Breaking Down the Best Auto Insurance for No-License Drivers

1. State Farm - Best for Teens

4.9

Editor's Rating:

Questions? Talk to a Licensed Agent

866-563-6507

Estimated wait time: < 1 minute

Average Texas Rate for Minimum Coverage: $53 mo.
Average Texas Rate for Full Coverage: $162 mo.

What We Like Most

100+ years in business
Great for young drivers
Local agents in every state (except MA and RI)

What We Dislike Most

Must complete quotes by phone
No accident forgiveness

Read Full Review

Ready to save? Compare Quotes

State Farm is a great option for teen drivers with a permit who are working toward becoming fully licensed drivers. State Farm is easy to contact, offers a wide range of coverages, and provides significant discounts for those learning to drive. State Farm offers two apps to encourage and reward safe driving habits, one of which is specifically designed for young drivers.

While you must have a valid driver’s license to enroll in these programs, families who add teens to a State Farm policy while they’re learning to drive can plan to take advantage of these discounts once the teen passes their driver’s test. In addition, State Farm has 19,000 local agents across the country that teens and their families can meet with in person, online, or over the phone to discuss their options.

Who it’s best for

Teens with learner’s permits, classic car owners, someone who wants to work with a local agent

State Farm Pricing

State Farm	Full coverage	Minimum coverage	With a Teen Driver
Monthly	$169	$54	$420
Annually	$2,030	$650	$5,044
Difference from national average	-14%	-10%	-17%

2. Progressive - Best for Drivers With a DUI

4.7

Editor's Rating:

Questions? Talk to a Licensed Agent

866-651-1498

Estimated wait time: < 1 minute

Average Rate for Minimum Coverage: $56mo.
Average Rate for Full Coverage: $136 mo.

What We Like Most

Affordable rate for drivers with DUIs
Available in all 50 states
Telematics discount program

What We Dislike Most

Mixed reviews for customer service
Gap insurance won’t necessarily cover full amount owed

Read Full Review

Ready to save? Compare Quotes

Drivers with violations pay more for auto insurance on average than drivers with clean records. If you’ve had your license suspended, you can likely expect your auto insurance rate to increase. However, Progressive is one of the best insurers for drivers with DUIs, offering some of the most affordable average rates and generally offering coverage to many high-risk drivers.

Once your license is reinstated, you can take advantage of Progressive’s telematics discount program, Snapshot. Snapshot will track your driving via the Progressive mobile app or a plug-in device in your vehicle. You can get a discount just for signing up and an additional discount depending on how safely you drive, though Progressive doesn’t advertise the maximum discount amount.

FYI:

In some states, Progressive may increase your rates if it detects unsafe driving. Especially if you have a history of violations, make sure you work to improve your driving habits to avoid a rate hike. Progressive states that about 2 in 10 drivers see a rate increase with Snapshot.²

Who it’s best for

High-risk drivers, including those with a DUI on their record; those who prefer a standard insurer

Progressive Pricing

Progressive	Full coverage	Minimum coverage	With a DUI
Monthly	$172	$59	$235
Annually	$2,060	$702	$2,816
Difference from national average	-13%	-3%	-37%

3. USAA - Best for Military and Veterans

Editor's Rating:

Questions? Talk to a Licensed Agent

855-439-0313

Estimated wait time: < 1 minute

Average Texas Rate for Minimum Coverage: $29 mo.
Average Texas Rate for Full Coverage: $106 mo.

What We Like Most

Benefits and coverage extend to military dependents
Several membership perks, like car rental discounts
Cheapest rates on our list

What We Dislike Most

Military eligibility required
Limited to members
Fewer branch locations

Read Full Review

Ready to save? Compare Quotes

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 veterans who own cars but have someone else drive them.

Not only does USAA have fantastic prices for service members and their families, but it also offers a variety of discounts to lower your cost even further. You could be eligible for a discount if you garage your vehicle on a military installation, store your insured car in a garage, download and participate in USAA’s SafePilot app, and more. The company also offers its members several perks, including bank loans and investment options.

Who it’s best for

Military members and veterans, active-duty members stationed overseas who store their cars in the U.S.

USAA Pricing

USAA	Full coverage	Minimum coverage	For High-Risk Drivers
Monthly	$128	$36	$250
Annually	$1,533	$436	$2,998
Difference from national average	-35%	-40%	-33%

4. Direct Auto - Best for Drivers With an SR-22

3.6

Editor's Rating:

Questions? Talk to a Licensed Agent

866-514-8681

Estimated wait time: < 1 minute

Average Rate for Minimum Coverage: $78 mo.
Average Rate for Full Coverage: $264 mo.

What We Like Most

Accepts high-risk drivers
Several ways to pay
SR-22 filing

What We Dislike Most

Higher costs
Limited tech tools
Mixed service ratings

Read Full Review

Ready to save? Compare Quotes

Direct Auto is available in 15 states and specializes in providing nonstandard auto insurance to drivers who may be considered high risk or need SR-22 certifications. If you’ve been convicted of a serious driving violation and your license has been suspended, Direct Auto will help you file for an SR-22 certification and provide you with the insurance coverage you need. As such, it may be more likely to cover certain high-risk drivers than standard carriers like Progressive.

Direct Auto is a particularly good option for drivers with suspended licenses who need non-owner coverage, as the company provides coverage for this situation as well. 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.

TIP:

Drivers with a suspended license should aim to maintain coverage to avoid gaps that can increase rates.

Who it’s best for

Customers looking for flexible payment options, someone who requires an SR-22, drivers with suspended licenses who need non-owner insurance

Direct Auto Pricing

Direct Auto	Full coverage	Minimum coverage
Monthly	$264	$78
Annually	$3,162	$930
Difference from national average	+34%	-3%

5. Kemper - Best for Hard-to-Insure

Editor's Rating:

Questions? Talk to a Licensed Agent

855-774-1576

Estimated wait time: < 1 minute

Average Rate for Minimum Coverage: $100 mo.
Average Rate for Full Coverage: $220 mo.

What We Like Most

Specializes in nonstandard insurance
Various discounts available
Excellent financial strength rating

What We Dislike Most

Higher rates for safe drivers
Limited add-ons

Read Full Review

Ready to save? Compare Quotes

Kemper is another insurer that specializes in auto insurance for high-risk or nonstandard drivers. There are many reasons someone might be a nonstandard driver — including teens, seniors, drivers with suspended or revoked licenses, and people with excessive driving violations or DUI convictions. Kemper has reasonable rates, on average, but you should expect your rates to increase if you’ve had your license suspended and are being denied coverage from standard insurers.

Kemper offers the coverages you need to be able to drive legally, as well as a few add-ons, including roadside assistance and rental reimbursement. It also has several discounts to help high-risk drivers lower costs, such as multi-car, homeowner, and paid-in-full discounts, as well as a telematics program called Co-Pilot that provides savings of up to 10 percent. Kemper received an A- (Excellent) rating from AM Best, meaning it can be trusted to fulfill its financial obligations.

Who it’s best for

Those who have trouble finding coverage from standard insurers, those whose license has been suspended

Kemper Pricing

Kemper	Full coverage	Minimum coverage
Monthly	$220	$100
Annually	$2,637	$1,198
Difference from national average	-13%	-3%

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.

Methodology: How We Review Providers

To determine the best auto insurance companies for drivers without a license, we evaluated major insurers across four key categories:

Pricing and Availability (40%): We analyzed average annual premiums for policies that allow unlicensed drivers to be listed. Availability of discounts for safety features, defensive driving courses, and other relevant opportunities were also considered.
Claims Handling (25%): We reviewed third-party evaluations like J.D. Power’s Claims Satisfaction Report and financial strength ratings from AM Best and Moody’s, indicating an ability to pay claims.
Customer Experience (25%): The overall experience of obtaining a quote, purchasing a policy, and interacting with the insurer was assessed based on ease of online quoting and purchasing, regional customer satisfaction scores, complaint data from the NAIC, and BBB ratings.
Coverage Options (10%): We prioritized insurers offering policy options that accommodate unlicensed drivers, such as non-owner car insurance policies. Availability of additional coverages like rental reimbursement, roadside assistance, and accident forgiveness were also evaluated.

By analyzing these key areas and weighing their importance for unlicensed drivers, we aimed to provide a comprehensive assessment of the best auto insurance options for those without a valid driver’s license. Learn more about our ratings and methodology.

Frequently Asked Questions

Can undocumented immigrants or workers without legal status get auto insurance without a U.S. license?

Yes, undocumented immigrants and workers without legal status can often get auto insurance in the U.S., even if they do not have a U.S. driver’s license. Some insurance companies allow applicants to use a foreign driver’s license or an alternative form of identification, such as an Individual Taxpayer Identification Number (ITIN) or a matrícula consular card.

The process and availability vary by state and insurer—some states are more accommodating, while others may require a U.S. license for coverage. Applicants should always contact insurers directly to discuss their specific situation, as online forms may require a license number by default.

How do insurance rates for unlicensed drivers compare by state?

Insurance rates for unlicensed drivers vary significantly by state, largely due to each state’s regulations, insurance marketplace, and risk assessment methods. In general, unlicensed drivers — or those using a foreign license — can expect to pay higher premiums than standard drivers because insurers have limited or no access to their U.S. driving records.

Some states with more competitive or inclusive insurance markets may offer better rates or more options, while others with stricter requirements may see fewer choices and higher costs. Local factors such as minimum required coverage, urban versus rural location, and insurer presence also affect price differences across states.

What documentation is required when applying for no-license insurance?

When applying for car insurance without a U.S. license, applicants should be prepared to provide alternative forms of identification and supporting documents, which may include:

A foreign driver’s license (if available)
Identification such as an ITIN, passport, or consular identification card
Proof of vehicle ownership (vehicle title or registration)
Proof of residence (lease agreement, utility bill, etc.)
If a primary driver other than the applicant will be listed, that driver’s valid license information
Additional documentation if required by the insurer, such as proof of financial responsibility or an SR-22 for those with suspended licenses

Because requirements can differ by insurer and state, we recommend contacting providers directly for precise guidance.

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. In this case, you may need to unregister the car or file an affidavit of non-operation. However, if someone decides to drive the vehicle, the car needs insurance coverage that meets your state’s standards.