A suspended license will likely raise your insurance rates, and your insurer may drop you entirely
When your license is suspended, your insurance company will usually find out through a routine check or when you renew your policy. Most insurers treat a suspension as a serious violation — it signals that you've broken traffic law or failed to meet a legal requirement. The result is often a rate increase of 20 to 50 percent, though the exact amount depends on your insurer, your driving history, and the reason for the suspension. Some insurers will cancel your policy outright rather than raise rates.
The timing matters. If your suspension happens between policy renewals, your insurer may not know when ready. But when they do find out — through a motor vehicle record check or when you call to make a claim — they can backdate the rate increase to the suspension date or cancel your coverage retroactively. This creates a gap where you were uninsured without knowing it, which is illegal to drive through and leaves you personally liable for any accident you caused during that time.
Key Takeaways
- Your insurer will likely discover your suspension at renewal or through a routine background check, and most will raise your rates significantly or cancel your policy.
- Driving with a suspended license is illegal even if your insurance is active, and you will face criminal charges separate from insurance consequences.
- Some insurers specialize in covering drivers with suspensions, but their rates are substantially higher than standard policies.
- You must tell your insurer about the suspension yourself if you want to avoid a retroactive rate increase or cancellation when they find out.
- The suspension will stay on your driving record for years, continuing to affect your rates even after your license is reinstated.
Why insurers treat suspensions as high-risk
A suspended license means you violated a specific traffic law or failed to meet a requirement — you didn't pay a fine, you accumulated too many points, you didn't pay child support, or you refused a breathalyzer test. From an insurer's perspective, any of these signals that you are more likely to cause an accident or file a claim. The suspension itself is a legal penalty, and insurers use it as evidence that you are a riskier driver to cover.
The reason for the suspension matters to your insurer, though not always in the way you might expect. A suspension for unpaid fines or administrative reasons (like missing a court date) is sometimes treated less severely than a suspension for a DUI or reckless driving conviction. But even an administrative suspension will trigger a rate increase because it shows you didn't comply with a legal obligation.
What happens at renewal or when your insurer finds out
Most insurance companies run a motor vehicle record check when you renew your policy, usually 30 to 60 days before your current policy ends. If your suspension is on that record, your insurer will see it. At that point, they have three options: raise your rates, add a surcharge, or cancel your policy and refuse to renew.
If your insurer cancels, they must notify you in writing, usually 10 to 30 days before the cancellation takes effect (the exact timeline varies by state). This gives you time to find another insurer, but your options will be limited. Standard insurers will likely decline you. You will need to look for a high-risk or non-standard insurer — a company that specializes in covering drivers with suspensions, accidents, or other violations. These policies cost significantly more, sometimes double or triple a standard rate.
If you don't tell your insurer about the suspension and they discover it later, they may cancel retroactively — meaning they cancel your policy as of the suspension date, not the date they found out. This leaves you uninsured for the period in between, even though you were paying premiums. You are now personally liable for any accident you caused during that gap, and you face legal penalties for driving uninsured.
Driving with a suspended license while insured
Having an active insurance policy does not make it legal to drive on a suspended license. The suspension is a separate legal penalty from insurance. If you are pulled over while driving on a suspended license, you will face criminal charges — usually a misdemeanor, sometimes a felony depending on the reason for the suspension and your state's laws. You may be arrested, fined, and have your license suspended for an additional period.
Your insurance will not cover an accident you cause while driving illegally on a suspended license. Most policies include a clause that voids coverage if you are breaking the law at the time of the accident. Even if your insurer does pay a claim, they may sue you to recover the money, or they will use it as grounds to cancel your policy and deny any future claims.
How to find insurance with a suspended license
If your insurer has canceled your policy or refused to renew it, you need to find a high-risk insurer before you can legally drive again. These companies accept drivers with suspensions, DUIs, accidents, and other violations. They charge higher premiums — often 50 to 100 percent more than a standard policy — but they will cover you.
Start by calling your state's insurance commissioner's office or visiting your state's insurance department website. Many states maintain a list of insurers that write high-risk policies, or they can direct you to the state's assigned risk pool — a program that guarantees coverage to drivers who cannot find it on the open market. You can also contact local independent insurance agents, who often have relationships with multiple high-risk insurers and can shop rates for you.
Be honest with any insurer you contact about the suspension. If you lie or omit it, the insurer can cancel your policy when they discover the truth, leaving you uninsured again. The suspension will show up on your motor vehicle record, which every insurer checks.
How long a suspension affects your insurance rates
The suspension itself is temporary — once you meet the requirements to reinstate your license (pay fines, complete a course, wait out the suspension period), your license is active again. But the suspension remains on your driving record, and insurers can see it for years.
Most insurers will keep your rates elevated for three to five years after the suspension ends, depending on the reason for the suspension and your state's laws. A DUI suspension typically affects your rates longer than an administrative suspension. Even after the rate increase ends, the suspension stays on your record permanently — it just stops being a factor in your rate calculation.
If you have multiple suspensions or a suspension combined with other violations, your rates will stay high longer, and you may find it difficult to move back to a standard insurer even after the suspension period ends.
Steps to take if your license is suspended
First, contact your state's Department of Motor Vehicles or equivalent agency to understand exactly why your license is suspended and what you need to do to reinstate it. The requirements vary by reason — you might need to pay a fine, complete a defensive driving course, serve a waiting period, or provide proof of insurance.
Second, tell your insurance company about the suspension when ready. Do not wait for them to find out. Call your agent or the insurer's customer service line and report it. Ask what will happen to your policy — whether your rates will increase, whether you will be canceled, or whether you can continue coverage. Some insurers will keep you on if you notify them proactively, though your rates will still rise.
Third, if your insurer cancels you, start looking for a high-risk insurer right away. You cannot legally drive without insurance, and the longer you wait, the more likely you are to be pulled over and face additional penalties.
Fourth, work on meeting the reinstatement requirements as quickly as possible. The sooner your license is reinstated, the sooner you can start the clock on the rate increase period. Once your license is active again, contact your insurer to update your record.
Frequently Asked Questions
Can I get insurance if my license is currently suspended?
Yes, but only from a high-risk insurer. Standard insurers will not cover you while your license is suspended. You must find a company that specializes in high-risk drivers. Your state's insurance commissioner's office or assigned risk pool can direct you to available options in your area.
Will my rates go down after my license is reinstated?
Not when ready. Most insurers keep the rate increase in place for three to five years after your license is reinstated, depending on the reason for the suspension. After that period, the suspension stops affecting your rates, though it remains visible on your driving record.
What if I was suspended for not paying a ticket, not for a driving violation?
Your insurer will still see it as a suspension and will likely raise your rates or cancel your policy. The reason for the suspension matters less to insurers than the fact that you did not comply with a legal requirement. However, some insurers treat administrative suspensions slightly less severely than suspensions for traffic violations.
Can I drive to work if my license is suspended but I have insurance?
No. Insurance does not make it legal to drive on a suspended license. Driving on a suspended license is a criminal offense separate from insurance. You will face criminal charges if you are caught, and your insurance will not cover any accident you cause while driving illegally.
What happens if I get in an accident while driving on a suspended license?
Your insurance will likely deny the claim because you were breaking the law at the time of the accident. You will be personally liable for all damages, and you will face criminal charges for driving with a suspended license. The other driver can sue you directly for their losses.