A suspended license will raise your insurance rates, but the length of the increase depends on your state and your insurer
When your license is suspended, your insurance company will find out — either because you tell them, because they check your driving record during renewal, or because they run a routine check. Once they know, most insurers will raise your rates significantly. The increase typically lasts for three to five years after your suspension ends, even though the suspension itself may only last weeks or months.
The exact timeline and cost depend on three things: your state's rules about how long insurers can use a suspension against you, your specific insurance company's policy, and the reason your license was suspended. A suspension for unpaid tickets affects your rates differently than a suspension for a DUI. Some states cap how long an insurer can penalize you; others do not.
The most important thing to know now is that your rates will go up the moment your insurer learns about the suspension, and they will stay up for years after it ends. This is separate from any legal penalties or court fines — it is purely how insurance companies price risk.
Key Takeaways
- Insurance companies can raise your rates as soon as they discover your suspended license, and the increase usually lasts three to five years after the suspension is lifted.
- The length of the rate increase is set by your state's insurance laws, which vary widely — some states allow insurers to penalize you for up to seven years, while others limit it to three.
- You must tell your insurance company about the suspension; if they discover it on their own and you did not disclose it, they may cancel your policy.
- The reason for the suspension matters: a DUI suspension triggers a larger rate increase than a suspension for unpaid tickets or administrative violations.
- Some insurers offer programs that lower rates if you complete defensive driving courses or maintain a clean record after the suspension ends.
When your insurer finds out and what happens next
Your insurance company will learn about your suspended license in one of three ways. You may tell them yourself when you call to report a change. They may discover it during your policy renewal, when they pull your current driving record. Or they may run a routine check between renewals and find the suspension on file.
The moment they know, they will typically send you a notice that your rates are increasing. Some insurers will also ask you to confirm that you are not driving while suspended — lying about this can give them grounds to cancel your policy later. If you do not tell them and they find out on their own, they may cancel when ready rather than just raising rates.
If your policy is cancelled because of non-disclosure, you will have to find a new insurer. Many standard insurers will not take you on after a cancellation for misrepresentation, so you may end up in the high-risk market, where rates are even higher.
How long the rate increase lasts after your suspension ends
The suspension itself is temporary — it ends on a specific date set by your state's DMV or court. But the insurance penalty lasts much longer. Most states allow insurers to use a suspension as a rating factor for three to five years after it ends. A few states allow up to seven years. Some states have no limit at all, though most insurers voluntarily stop using it after five years regardless.
Your state's insurance commissioner's office can tell you the exact rule in your state. You can find contact information on your state's Department of Insurance website. The rule applies to all insurers in your state, so switching companies will not help you escape the penalty — your new insurer will see the same suspension on your record.
The timeline starts from the date the suspension is lifted, not from the date it began. So if your license was suspended for six months, the three-to-five-year clock starts when those six months end.
How much your rates will increase
There is no fixed percentage — it varies by insurer, state, and the reason for the suspension. A suspension for unpaid tickets might raise your rates by 20 to 40 percent. A DUI suspension typically raises rates by 50 to 100 percent or more, and some insurers will not insure you at all after a DUI and will refer you to a high-risk pool.
The only way to know your specific increase is to contact your insurer or get a quote from another company. When you call, be honest about the suspension — quotes based on false information will be cancelled once the truth comes out. Some insurers offer online quote tools where you can enter your driving history and get an estimate in minutes.
If your current insurer's increase is steep, it is worth shopping around. Different companies weight suspensions differently, and you may find a better rate elsewhere. Just remember that every insurer will see the suspension on your record, so you cannot hide it to get a lower quote.
What happens if you need to drive during the suspension
Driving with a suspended license is illegal, and it also voids your insurance. If you are in an accident while driving on a suspended license, your insurance company will deny your claim — they will not pay for damage to your car or anyone else's, and they will not cover medical bills or legal liability. You will be personally responsible for all costs.
This is one of the harshest consequences of driving suspended. A single accident can cost tens of thousands of dollars out of your own pocket. Some states also allow the other driver to sue you directly for additional damages beyond what insurance would normally cover.
If you need to drive during a suspension, look into a restricted license or hardship license. These are limited licenses that allow you to drive to work, school, medical appointments, or court — depending on your state and the reason for the suspension. You can request one from your state's DMV or through the court that issued the suspension. Getting a restricted license keeps you legal and keeps your insurance active.
Rebuilding your record and lowering rates after a suspension
Once your suspension ends and your license is reinstated, you cannot undo the rate increase when ready. But you can take steps to show your insurer that you are a safer driver, which may lower your rates before the full three-to-five-year period ends.
Many insurers offer defensive driving discounts — you take an approved course (usually four to eight hours, often online) and your insurer gives you a discount of 5 to 10 percent. This does not erase the suspension penalty, but it reduces it. Some insurers also offer usage-based insurance programs where they monitor your driving through an app and lower your rates if you drive safely.
The most important thing is to avoid any new violations or accidents. Each year you go without a ticket or claim, your record improves, and some insurers will gradually lower your rates even before the full penalty period ends. After three to five years with a clean record, you should be back to rates close to what you paid before the suspension.
Switching insurers after a suspension
You can switch to a different insurance company at any time, but the suspension will follow you. Every insurer will see it on your driving record, so you cannot escape the penalty by changing companies. However, different insurers price suspensions differently, so shopping around can still save you money.
When you get quotes from new insurers, be upfront about the suspension. Lying on an insurance process is fraud and can result in policy cancellation and legal consequences. Once you have quotes from several companies, compare the total cost — sometimes a company with a higher base rate offers a bigger discount for defensive driving or a clean record after the suspension.
If you are having trouble finding standard coverage, you may need to use a high-risk insurer. These companies specialize in drivers with suspensions, DUIs, or other serious violations. Their rates are higher, but they will take you on when standard insurers will not. As your record improves, you can move back to a standard insurer.
Frequently Asked Questions
Will my insurance company cancel my policy when they find out about the suspension?
Not automatically. Most insurers will raise your rates instead. However, if you did not tell them about the suspension and they discover it on their own, they may cancel for non-disclosure. Some insurers also cancel if the suspension is for a very serious violation like a DUI. Check your policy documents or call your insurer to ask their specific cancellation rules.
Can I get insurance while my license is actually suspended?
Yes, you can keep your policy active. However, if you drive while suspended and get in an accident, your insurer will deny your claim because you were breaking the law. If you need to drive, get a restricted or hardship license first so you are legal and your coverage stays valid.
Does the suspension penalty go away after a certain number of years?
Yes, but it takes longer than the suspension itself. Most states allow insurers to use a suspension as a rating factor for three to five years after it ends. Some allow up to seven years. After that period, insurers must stop using it, though it may still show on your driving record. Your state's Department of Insurance can tell you the exact rule where you live.
Will a defensive driving course remove the suspension penalty from my insurance?
No, but it can reduce it. A defensive driving discount typically lowers your rates by 5 to 10 percent, which helps offset the suspension penalty. The discount is separate from the penalty — you will still pay more than you did before the suspension, but less than you would without the course.
What if I get another ticket or violation while my rates are already raised from the suspension?
Your rates will increase again. Each violation is priced separately, so a new ticket or accident will stack on top of the suspension penalty. This is why staying clean after a suspension is so important — one more violation can double or triple your rates and extend the penalty period.