Car Insurance Is insurance on a license more affordable than traditional car insurance? View Carriers Please enter valid zip Compare top carriers in your area Written by Insure.com's Editor | Updated on: August 21, 2023 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Yes, insurance on a license is generally more affordable than traditional car insurance because it offers limited liability coverage without insuring the vehicle itself. This reduced scope often leads to lower premiums, making it a cost-effective option, especially for occasional drivers and non-car owners. Here are what makes insurance on a license a more affordable option than traditional car insurance Cost-effective – The premiums tend to be lower since it focuses solely on liability coverage and doesn’t include coverage for the vehicle you’re driving. Lower risk profile – Insurance on a license is for those who drive occasionally or don’t own a car. This lower risk profile can translate to lower premiums than regular car insurance, which covers both the driver and the vehicle. Personalized premiums – With insurance on a license, the reduced scope of coverage can lead to more budget-friendly premiums. Conclusion Traditional car insurance might be unnecessary if you don’t own a car. Opting for insurance on a license can provide the essential liability protection you need while avoiding the higher costs associated with insuring a vehicle you don’t have. Comparing quotes from different insurers can determine the cost-effectiveness for your specific situation. While insurance on a license tends to be economical, obtaining multiple quotes helps you make an informed decision that aligns with your budget and coverage requirements. In case you missed it Best Car Insurance Companies of 2024 Car insurance rates by state in 2024 What is full coverage car insurance? How much does car insurance cost for seniors in 2024? A complete guide to adding a teenager to your car insurance policy in 2024 What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? Used car insurance costs: Most and least expensive models to insure The Best Car Insurance for Bad Credit of 2021 The best car insurance companies for speeding tickets Car insurance after a DUI Guide to car insurance discounts Proper insurance coverage for college-bound children How to read your auto insurance policy A complete list of car insurance companies New driver insurance grace period: What you need to know How much do insurance agents make? Autonomous cars: 5 delightful and 5 distressing things Busted! Part 1: How insurance companies spot bogus claims Insurance options for rideshare drivers 10 things that are illegal but shouldn’t be 1/1 ZIP Code Please enter valid ZIP See rates