How Allstate handles a suspended license
When your driver's license is suspended, Allstate does not automatically cancel your policy, but the company will likely suspend your coverage or require you to remove yourself as a driver from the policy. A suspension means you are legally prohibited from driving, so Allstate cannot insure you behind the wheel during that period. The exact action depends on why your license was suspended, how long the suspension lasts, and what Allstate learns about your situation.
Allstate typically finds out about a suspension through state motor vehicle records, which insurance companies check regularly. Once they know, they will contact you to discuss your options. You have a few paths forward: you can remove yourself as a driver temporarily, add a household member as the primary driver, or let the policy lapse if you have no one else to insure. The timing matters — the sooner you contact Allstate yourself, the more control you have over what happens next.
Key Takeaways
- Allstate will discover your suspension through state records and will contact you to either suspend your coverage or remove you as a driver.
- You can keep your policy active by naming another licensed household member as the primary driver, which also keeps your rates from resetting when you get your license back.
- If you contact Allstate before they contact you, you have more options and can avoid a lapse that might trigger a higher rate later.
- The length of your suspension and the reason for it affect whether Allstate will reinstate you without a new underwriting review once the suspension ends.
Why Allstate suspends coverage during a license suspension
Insurance is a contract that protects against risk. If you cannot legally drive, Allstate cannot collect premiums for coverage you cannot use. More importantly, if you were to cause an accident while driving on a suspended license, Allstate would likely deny the claim — meaning the other driver's injuries and property damage would not be covered, and you would be personally liable. This exposes Allstate to legal and financial risk, so they step in before that happens.
The suspension also signals to Allstate that you have violated traffic laws or failed to meet a legal requirement — unpaid tickets, DUI convictions, or failure to maintain insurance in the first place. These are red flags that increase your risk profile in Allstate's eyes. A suspension is not the same as a minor violation; it is a court or DMV action, which carries more weight in underwriting decisions.
What to do if your license is suspended
Contact Allstate as soon as you know your license will be or has been suspended. Do not wait for them to find out through state records. Call your agent or the Allstate customer service number on your policy card and explain the situation. Be honest about the reason — whether it is unpaid tickets, a DUI, failure to maintain insurance, or a medical suspension. Allstate will ask how long the suspension lasts and whether you have other household members with valid licenses.
If you have a spouse, adult child, or other household member with a valid license, ask Allstate to make that person the primary driver on the policy. This keeps your policy active and your rates stable. You will remain on the policy as a secondary driver, but you cannot drive during the suspension period. Once your license is reinstated, you can switch back to being the primary driver without restarting your coverage or facing a rate increase for the gap.
If no one else in your household can drive, you have two choices: let the policy lapse (which you may need to do anyway if you are not driving), or keep it in force with you as a named insured but not as a driver. Some Allstate policies allow this; others do not. Ask your agent which option applies to your situation.
How long the suspension affects your insurance
The length of your suspension depends on the reason. A suspension for unpaid tickets might last 30 to 90 days. A DUI suspension typically lasts 6 months to 1 year for a first offense, longer for repeat offenses. A medical suspension (for failing a vision or medical exam) can last until you pass a new exam. Check your suspension notice or contact your state's DMV to confirm the end date.
Allstate will not automatically reinstate your coverage on the day your suspension ends. You will need to contact them to confirm your license is valid again. Bring your reinstated license or a letter from the DMV showing the suspension has been lifted. If you switched to another driver during the suspension, you can switch back at this time. Allstate will review your file to make sure nothing else has changed and will reinstate you without a new process in most cases — but this is not may provide if the reason for the suspension was serious (such as a DUI) or if other violations occurred during the suspension period.
Reinstating your license and your insurance
Before your suspension ends, contact your state's DMV to understand what you need to do to get your license back. Some suspensions lift automatically on the end date; others require you to pay a reinstatement fee, complete a defensive driving course, or pass a new written or vision test. Do not assume your license will be valid on day one — confirm the requirements and complete them in time.
Once your license is reinstated, contact Allstate with proof. A copy of your new license or a DMV letter is usually sufficient. Allstate will update your file and restore your driving privileges on the policy. If you were paying a lower rate because another household member was the primary driver, your rate may go back up at this point — but it should return to what you were paying before the suspension, not a new higher rate, as long as no other violations occurred during the suspension period.
What happens if you drive on a suspended license while insured by Allstate
If you cause an accident while driving on a suspended license, Allstate will almost certainly deny your claim. This is not a judgment call — it is written into the policy. Driving on a suspended license is illegal, and insurance does not cover illegal acts. You would be personally responsible for all damages: the other driver's medical bills, vehicle repairs, lost wages, and pain and suffering. This liability can follow you for years and may result in wage garnishment or a lawsuit.
Additionally, Allstate would likely cancel your policy for material misrepresentation — meaning you drove when you knew you were not supposed to. Once cancelled, you would have to disclose the cancellation on all future insurance applications, which would make you a higher-risk applicant and could result in higher premiums or denial of coverage from other insurers.
Reinstating after a lapse
If your policy lapsed during your suspension — either because you did not contact Allstate or because you chose to let it end — reinstating it after your license is restored is more complicated. Allstate will treat it as a new process, not a reinstatement. This means a new underwriting review, which may result in a higher rate or additional conditions. You may also face a gap in coverage, which some states penalize with a surcharge when you buy insurance again.
To avoid this, keep your policy active during the suspension by naming another driver or by keeping yourself on the policy as a non-driver. The small premium you pay during the suspension is usually much less than the rate increase you will face if the policy lapses and you have to reapply.
Frequently Asked Questions
Will Allstate cancel my policy if my license is suspended?
Allstate will not automatically cancel, but they will suspend your coverage or remove you as a driver. If you have another household member with a valid license, you can keep the policy active by making them the primary driver. If no one else can drive, the policy will likely lapse unless you ask Allstate to keep it in force with you as a non-driver.
Can I get a refund for the time I cannot drive?
No. Allstate will not refund premiums for a suspended license. However, if you remove yourself as a driver and add another household member, your premium may decrease because that person's driving record and age are different from yours. Ask your agent for a new quote.
What if I did not tell Allstate about my suspension and they found out?
Allstate will contact you to discuss your options. If you have been driving during the suspension without telling them, and they discover this, they may cancel your policy for material misrepresentation. If you caused an accident during this time, your claim will be denied. Contact Allstate when ready if this is your situation.
Will my rates go up after my license is reinstated?
Your rates should return to what you were paying before the suspension, assuming no other violations occurred. However, the reason for the suspension matters. A DUI or reckless driving suspension may result in a rate increase even after reinstatement, because these violations stay on your driving record. Ask your agent what to expect before your suspension ends.
Can I switch insurance companies while my license is suspended?
You can, but most insurers will ask about the suspension during the process process. You will have to disclose it, and many companies will either deny you or charge a higher rate. It is usually better to stay with Allstate and keep your policy active during the suspension, then switch after your license is reinstated if you want to.