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Impact of License Suspension on Insurance Rates

By The Law Office of Brett V. Beaubien

May 14, 2024

Impact of License Suspension on Insurance Rates

Car insurance and driver’s licenses are two sides of the same coin in Massachusetts. While car insurance helps protect you financially in case of an accident, a valid license is a prerequisite for legal driving. So, what happens when your license gets suspended? Can you still get car insurance? This article dives into the details of license suspensions and their impact on car insurance in Massachusetts.

License Suspension Explained

A Massachusetts license suspension hits pause on your driving privileges. It’s not a complete loss of your license, but a temporary ban that can last days, months, or even years depending on the severity of the offense. Common causes include racking up points from traffic violations, driving under the influence (DUI), or lacking car insurance. 

While you can’t legally drive during a suspension, it’s different from a revocation, which permanently takes away your license. The good news? Suspensions can be lifted after a period. The bad news? Insurers see suspended licenses as a risk, so your rates may increase after reinstatement.

Identifying the Potential Consequences

Insurance consequences of license suspension include:

Limited Coverage Options

With a suspended license, finding affordable coverage becomes challenging. Some insurers may offer coverage, but at exorbitant rates, while others may outright deny coverage, leaving you uninsured.

Policy Cancellation

In severe cases, your insurance provider might choose to cancel your policy altogether due to the increased risk associated with a suspended license. This leaves you vulnerable to legal consequences and financial liabilities in case of an accident.

Legal Requirements

Even if you manage to secure insurance with a suspended license, it’s crucial to understand that driving without a valid license violates Massachusetts law, potentially leading to further legal penalties and complications.

Higher Insurance Rates

Perhaps the most long-lasting consequence is the impact on your car insurance. A suspension can significantly increase your rates, even after reinstatement. Insurance companies view drivers with suspensions as higher risk, leading to potentially steeper premiums. 

How to Navigate the Legal Process During a License Suspension

A suspended license in Massachusetts can disrupt your daily life. Here’s how to regain control:

Identify the Reason

Start by figuring out why your license is suspended. Traffic violations, DUIs, or a lack of insurance are common culprits. Knowing this is key to getting it back.

Visit the RMV Website

The Massachusetts Registry of Motor Vehicles (RMV) website has details on suspension lengths, the reinstatement process, and any hearings you might need to attend.

Consider an Attorney

An experienced lawyer can explain your options, fight for a possible reduction in your suspension, and ensure you follow the correct steps for reinstatement.

Maintain Insurance 

Don’t drive uninsured during your suspension. This can lead to harsher penalties and make it harder to get your license back. If possible, keep some form of car insurance active throughout.

The RMV website offers general info, but a legal advocate for suspended licenses in Massachusetts can provide personalized guidance for a smoother reinstatement process.

Insurance Providers’ Policies Regarding Suspended Licenses

License suspension in Massachusetts can impact your car insurance in different ways including:

Risk Assessment

Insurance companies perceive suspended licenses as heightened risk factors, potentially resulting in adjustments to your insurance premiums.

Policy Consequences

Suspended licenses may lead to policy cancellation or non-renewal by insurers, leaving you without coverage.

Specialized Options

You may need to explore specialized insurance providers catering to individuals with suspended licenses, albeit at higher premium rates.

Impact on Rate

Expect significant increases in insurance premiums due to the perceived risk associated with license suspension.

Options for Minimizing Insurance Rate Increases

To mitigate insurance rate hikes due to license suspension in MA, consider these steps:

Maintain Continuous Coverage 

As mentioned earlier, keeping your car insurance active throughout the suspension (even if you can’t drive) shows responsibility to the RMV. This can potentially soften the rate increase when your license gets reinstated.

Shop Around for New Rates

Don’t just accept the renewal offer from your current insurer. Get quotes from multiple companies. Some insurers may be more forgiving towards drivers with past suspensions, offering more competitive rates.

Consider Raising Your Deductible

The deductible is the amount you pay out of pocket before your insurance kicks in. Opting for a higher deductible lowers your monthly premium. Just remember, choose a deductible you can comfortably afford in case of an accident.

Laws and Regulations Related to License Suspension and Insurance Rates

Massachusetts imposes license suspension for various reasons, including DUI convictions, accumulating excessive points on your driving record, or failure to maintain auto insurance coverage.

While there’s no state law mandating insurance companies to offer coverage during a suspension, some insurers might allow you to maintain a policy with limited driving privileges. However, these policies often come with restrictions and potentially higher rates. It’s important to remember that driving without insurance during a suspension is illegal and carries harsh penalties.

To ensure continuous coverage and avoid further complications, you must comply with state laws and insurance regulations. This includes timely payment of premiums and adherence to legal requirements, even during periods of license suspension. 

Get Help with License Suspension Cases From The Law Office of Brett V. Beaubien

Facing a Massachusetts license suspension? The Law Office of Brett V. Beaubien can help you.

Understanding Your Rights

We’ll explain the legalities surrounding your suspension and explore all available options, including eligibility for restricted licenses and potential challenges to the suspension itself.

Negotiating with the RMV

Our experience can be valuable when dealing with the RMV. We can represent you and fight for a possible reduction in your suspension period or a more favorable outcome in your case.

Protecting Your License

Our legal expertise can ensure your rights are protected throughout the process, increasing your chances of a successful reinstatement.

Minimizing Insurance Impact

We can help you understand the insurance implications of a suspension and explore ways to minimize the impact on your car insurance rates after reinstatement.

If you are ready to protect your rights, then schedule a consultation with The Law Office of Brett V. Beaubien today.

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