I just checked with the Baja agent to make sure the insurance available with “no license” applies to Texas registered cars in Texas. According to our conversation, if you tell the agent “no license” you can get this insurance. If you tell the agent you have a suspended license, they may put it down and there’ll be trouble with the state.The part about "trouble with the state" still sounded like it might be illegal or somehow improper for those with licenses suspended because of the Driver Responsibility Program. So this morning I emailed Jerry Hagins at the Texas Department of Insurance Public Information Office who informed me:
A driver's license is not required, by statute, in order to purchase auto insurance, but practically speaking, most insurance companies require it in their underwriting guidelines. Some insurers may write a policy for an applicant with no DL but require that a Texas DL be obtained within a certain timeframe; or they may write a policy but add a surcharge; or they may write a policy if the applicant can verify driving experience via some other means. It may require a lot of shopping around to find an insurer who will write a policy to an applicant without a drivers license but it is permitted.So there you have it. Most insurance companies won't cover you without a driver license, but with so many people out there with suspended licenses, clearly providers have arisen to service this risky submarket because of its shear volume and the potential for predatory pricing.
I'd never been under the impression, FWIW, that state law forbade such insurance products, I just couldn't imagine auto underwriters willing to write policies for people with licenses suspended for cause. My apologies for the error. Who'da thunk? I wonder if the rise of such insurance products is directly attributable to the advent of the Driver Responsibility Program and the proliferation of administrative license revocations as punishment?