Feb 14, 2024

Can An Insurance Company Suspend A Driver’s License? Unraveling the Facts

As a driver, your insurance is an important part of maintaining your driving privileges. However, you may have questions about losing those privileges like what happens if you are in a car accident and the insurance company tries to blame you? Can the insurance company suspend a driver’s license? 

If you have been in an accident, reaching out to our car accident attorneys can help you protect your license, maximize your compensation, and help you recover. But before you take your case to court, be sure you understand all the details that can affect your case, and if the insurance company can impact your license.

Person with their hands on their head after a car accident

When Can My License Be Suspended? 

Your driver’s license is granted and can be taken away by the state Dept. of Motor Vehicles (DMV), a state government entity that controls licensing and related issues. Note that the insurance company cannot decide to suspend or revoke your license. However, there are many cases where your license may be suspended, including for not having car insurance active while you own a vehicle in Florida.

Some of the most common reasons for a license suspension are DUI charges and repeat traffic violations. Recurring issues with breaking traffic laws, specifically if you do not fight to get those charges dropped, can lead to a license suspension as well. 

Cases Where an Insurance Claim Can Impact Your License 

While your insurance company cannot suspend your license in the same way the DMV can, your insurance policy is connected to your license. Many states, including Florida, require residents to have proof of insurance at all times. Having insurance shows that you are meeting responsibility requirements imposed by Florida law.

Your license can be used as leverage in some states for unpaid judgments. If you are involved in a car accident and take responsibility for it, but your insurance company does not pay, certain states allow the injured party to petition for your license to be suspended until the judgment is satisfied.

Does My Insurer Have Power Over My License? 

The quick answer is: not as long as you keep your auto insurance policy active. While your insurance policy is related to your driver’s license, that does not mean the insurance company has power over your license. This power is reserved for the DMV, which makes decisions about licensing and can take away your legal permission to drive. Your insurance company does not have this power, so you do not have to worry about the insurance company revoking your license if something goes wrong.

However, that does not mean your insurance company cannot impact or influence your driver’s license. As mentioned, your license is contingent in some ways on your having insurance. If your insurance company drops you and you do not seek new insurance coverage, it can lead to a license suspension.

What Happens If My License Is Suspended? 

Unfortunately, there are many situations where your license can be suspended for various reasons. Whether that is because you did not fight DUI or traffic violation charges, you lost your insurance, or you are facing other issues where your license is being leveraged, you may lose your driving privileges. 

Hardship Licenses 

For some people, losing their license could mean losing their job. If you are in a situation where your driver’s license is suspended, you may be able to petition for a hardship license. The hardship license is offered to those whose licenses are suspended but may not be able to maintain their quality of life without it. 

A hardship license works similarly to a regular license, except that it has restrictions. Your hardship license only allows you to travel to and from certain locations. So, if you requested a hardship license to work, you may only be able to drive to work and back. If you are a student, you may only be able to drive to school and back.

Suspension vs. Revocation 

In more severe situations, you may be facing a revocation, not a suspension. Both mean that you will lose your license for a while, but a suspension is temporary. Once you complete certain conditions, you may need to pay a fee for your license to be reinstated. 

Getting your license revoked means that you lose your license completely. While the revocation can be lifted once you complete certain conditions and requirements, your license will not be automatically available to you again. 

Protect Your License with an Accident Attorney in Florida 

Your driver’s license is the key to your automotive freedom. Whether you are a student, employed, or retired, your license may be necessary, especially in areas where public transit is not reliable (like South Florida). While your insurance company cannot suspend your driver’s license, ensuring that your driver’s license is protected is vital.

If you have been involved in a car accident or have similar issues with your insurance company, do not hesitate to reach out for a free consultation. You can reach us when you call or fill out our online contact form.  Remember at AccidentLawFirm.com, Our 5-Star Reviews Are No Accident.