Car insurance for unauthorized immigrants has long been difficult to obtain. However, an increasing number of states now offer driver’s licenses regardless of immigration status, making it easier for millions of undocumented immigrants to obtain car insurance.
Car insurance provides financial protection if you cause an accident, and it is required in most places, along with a license, to drive legally.
Here are the measures that undocumented immigrants might take to obtain coverage.
Apply for a driver’s license
Most insurance companies only sell coverage to drivers who have a legal license, so if you don’t already have one, apply now.
The District of Columbia and ten states—California, Colorado, Connecticut, Illinois, Maryland, New Mexico, Nevada, Utah, Vermont, and Washington—allow residents to apply for licenses regardless of immigration status. Undocumented immigrants living in Delaware and Hawaii will be eligible to apply for licenses in 2016.
In addition, you may be eligible for a license through the federal Deferred Action for Childhood Arrivals program. The program shields immigrants from deportation if they were brought to the United States illegally as children, were under the age of 31 on June 15, 2012, and met other requirements. Nebraska, the only state that did not allow young people participating in the program to obtain driver’s licenses, withdrew its ban in May. Arizona had a similar prohibition, but it was overruled by a federal court.
Other than the states indicated above, unauthorized immigrants are not often issued licenses, with the exception of young persons who qualify for the DACA program.
If you are eligible to apply for a driver’s license, visit your state’s Department of Motor Vehicles website to learn more about the application process. Obtain a copy of your state’s driving handbook to learn the regulations of the road, and take a practice written test before taking the real one.
Decide how much car insurance to buy
Most states require drivers to carry at least a minimum amount of liability car insurance, which covers the treatment of injuries and the repair of property damage caused in an accident. You may wish to purchase extra liability insurance than the state needs. You should get enough liability coverage to protect your funds and any property you own, such as a home, in case you are sued for causing an accident.
Some states also mandate personal injury protection (PIP), medical payments insurance, or uninsured and underinsured motorist coverage (UM/UIM). These coverage options pay for your medical treatment. PIP and medical benefits pay regardless of who caused the accident, whereas UM/UIM compensates if you are injured by a driver who does not have adequate, or any, insurance.
Collision and comprehensive insurance protect your car. They are optional for states. Collision insurance covers the cost of repairing your car after an accident, whereas comprehensive insurance covers the cost of repairs if your car is damaged due to other causes such as vandalism, storms, or animal collisions. Comprehensive insurance will also reimburse you for the market value of your car if it is stolen.
If you financed or leased your car, you will be required to carry collision and comprehensive insurance.
Get car insurance quotes
Once you’ve determined the type of insurance you require, compare prices from several car insurance companies.Â
Rates vary greatly between insurance companies, and comparing quotes might save you money. That savings will come in useful because insurance companies will classify you as a “new driver” if you recently obtained your license, even if you’ve been driving for years in another country. As a result, your premiums will most likely be higher than those of someone with a long and safe driving record in the United States.
If you avoid accidents and violations while maintaining insurance coverage, your premiums should fall in the coming years.
Every year, evaluate your insurance needs and obtain estimates for coverage from different insurers to ensure that you continue to receive the best possible bargain. Choose the firm with the greatest pricing and service.
Low-cost insurance available in California
If you live in California, you may be eligible for the state’s Low-Cost Auto Insurance Program, which provides low liability insurance to meet state insurance requirements. Insurance through the program is from $213 to $472 per year, depending on your county and driving history.
To qualify, you must:
- Possess a valid California driver’s license.
- Own a vehicle valued at less than $25,000
- Be at least 19 years old.
- Meet the requirements for low-income households. A single person can earn up to $29,425 and be eligible for the program; for a family of four, the threshold is $60,625.
