Are you required to have autoinsurance if you have a license?

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Are you required to have autoinsurance if you have a license?

I am 18 years old and I receive insurance through my parents company. I want to sell my car and purchase a road bike to use instead until I graduate and when I go to college (and possibly purchase a car then and there). The current cost of my portion of insurance is $220, is a lot, especially compared to how much I make. Our insurance company claims that we are not allowed to cancel insurance on me even if I sell that car because its assumed I’ll still be driving their vehicle. They told us it was a law that I must be insured if I have a license. Is this true? Or is there anyway around this?

Asked on February 16, 2011 under Insurance Law, Oregon

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The insurance company is either mistaken or misinforming you. A person must insurer any and every car (or SUV, truck, etc.) they have--they are not required to have insurance simply you have a license; indeed, especially in urban areas, many people have licenses (for identification or in case they rent a car) but no car and no insurance. Below is a link to a web page of your state government summarizing some insurance requirements. Before that, it may be the case that, depending on the sale you make, the insurance company will not believe that you actually disposed of the car and think instead that you just transfered the title "on paper"--but that's a different issue. For example, if you sold the car to your parents, they may not be quick to believe that it's no longer your car. Also, if you are living at home and don't have your own insurance, your parents may need to add you to theirs, on the reasonable assumption that you have access to their vehicle. However, the law is that you must have insurance if you have a car--not if you have a license. Here's the link:http://www.oregon.gov/ODOT/DMV/driverid/insurance.shtml#Minimum


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