Driver license laws for undocumented residents and uninsured driving

As of the National Conference of State Legislatures' March 2023 update, 19 states and the District of Columbia issue driver's licenses, permits or "driving privilege cards" without requiring proof of lawful immigration status. The idea behind the laws is that a licensed driver can be tested, registered and insured, so the number of uninsured drivers should fall. The research so far is more cautious: studies of California's law found fewer hit-and-run crashes in one analysis, no clear change in the uninsured rate in another, and no measurable change in insurance uptake or premiums in a peer-reviewed study.

This article lays out which states have these laws and when they took effect, what the research does and does not show, how insurers treat a driver in this position, and what options exist for someone who has no license at all. Because this area of law is contested and changes from year to year, check your state's motor vehicle agency before relying on any list, including this one.

Which states issue licenses regardless of immigration status

The National Conference of State Legislatures (NCSL) tracks these laws. Its table, last updated March 13, 2023, lists the states below with the date each law took effect. Some states issue a standard license; others issue a card that is valid for driving but carries a notation or is marked as not valid for federal identification.

Two details matter for insurance. First, several of these laws tie the card to insurance compliance. NCSL lists Rhode Island's requirement that applicants comply with insurance requirements, and Virginia's condition that applicants have no insurance violations. Second, the cards differ in kind. A standard license in a state such as California or New Jersey behaves like any other license in the state's records, while a "driving privilege card" may be a separate credential that an insurer's systems treat differently. The practical consequence is that you should tell the insurer exactly which credential you hold and ask whether it can be used to rate a policy.

What a license requires and what an insurer sees

States set their own document rules. NCSL's table shows the range: a foreign passport or consular ID plus proof of residency (Connecticut, Illinois, Oregon, Minnesota), state tax returns or proof of a dependent claim (Delaware, Maryland, Virginia), a tax identification number in place of a Social Security number (New Mexico, Utah), or, in Massachusetts and New Jersey, no proof of lawful presence at all. California's DMV says only that applicants bring "proof of identity and residency documents" and directs them to its AB 60 checklist; applicants without the right documents go through a secondary review (California DMV).

The motor vehicle agency does the identity and residency checking. An insurer's job is different. It needs enough to identify you, and then it pulls your driving history and claims history to price risk: your name, date of birth, address, license number, the vehicle's VIN and your record. A license number matters because it unlocks the motor vehicle report, which shows violations and suspensions. Without a record the insurer cannot see, you are priced mostly on what it does know: age, ZIP code, vehicle and the coverage you choose.

The same logic explains why a first U.S. license does not bring a cheap policy. Insurers give credit for years of licensed driving and for prior insurance without gaps, and a driver who has been licensed here for a few months has neither. Our guide on getting car insurance with a foreign or new license covers the same pricing effect for people who hold a license from another country.

Why the license is supposed to change insured rates

Supporters of these laws make three connected arguments.

1. A license is a gateway to insurance. Many insurers expect a licensed driver on the policy, and some states require one. Removing the barrier lets people who already drive buy coverage openly.
2. The fear of being stopped changes behavior. A driver who cannot be licensed has strong reasons to avoid police, including after a crash. If a crash happens and the other driver drives away, the injured person's own uninsured motorist coverage may be the only source of payment. A hit and run involves a driver who cannot be identified, and the law in many states treats that claim like one against an uninsured driver.
3. Testing improves safety. A licensed driver has passed a knowledge test and, in many states, a road test.

Critics respond that a license does not require insurance, that many people newly licensed were already insured through a household vehicle, and that states with the laws still have uninsured drivers. Both arguments rest on empirical claims, so the useful question is what the data show.

What the studies found

California is the best-studied case. Its AB 60 took effect in January 2015, and by the time of a July 2018 report for the California Department of Insurance, the DMV had issued more than one million AB 60 licenses, about four percent of all licenses held in the state. That scale makes it the largest test of the idea. Four sources are worth knowing.

The 2016 insurance department analysis

Insurance Journal reported that the department's early look found insured vehicles rose by about 200,000 more than expected in 2015, after years in which insured vehicles had grown at the same rate as registered vehicles. The department itself described an "apples-to-oranges relationship" between licenses, registered vehicles and insured vehicles. A license does not require insurance, insurance follows the vehicle rather than the driver, and a stronger economy and lower gas prices may have helped other drivers keep their policies. The finding was a signal, not a measurement.

The 2018 county-level report

The Sacramento State report compared counties with more and fewer undocumented residents before and after 2015, because individual-level AB 60 data was not available. It found that counties with larger undocumented populations saw a bigger increase in total licenses issued. For uninsured vehicles, the statewide share rose about 1.5 percent between 2013 and 2016, but for each additional one percent of a county's residents who are undocumented, the increase was 0.09 percent smaller than expected. The authors read that as "some evidence" that the law may have slowed the rise, and then called the overall effect on uninsured motorists "inconclusive."

On collisions the report found no county difference. The share of collisions involving at least one uninsured motorist rose from 12.2 percent in 2014 to 18.0 percent in 2017 statewide, and hit-and-run incidents rose from 18 to 20 percent of collisions, with no sign that AB 60 changed either trend. The authors noted that this differs from the Stanford study and gave possible reasons: a shorter and later study period, and a change in the climate for undocumented immigrants after 2016 that could have affected behavior regardless of licensing.

The report also looked at the state's Low Cost Auto program and found no clear evidence that AB 60 increased applications. Roughly 11 percent of 2014 to 2017 applicants could have been newly licensed under the law, and the authors concluded that most insured AB 60 drivers bought market-rate insurance. They also raised the possibility that applying through a website could deter people worried about how information would be used.

The 2022 peer-reviewed study

The Journal of Risk and Insurance study by Hans Lueders and Micah Mumper used variation across counties in the estimated number of AB 60 licenses and found "no measurable effects on auto insurance uptake or premium costs." The authors offered two explanations: most newly licensed people were already driving before the reform, and many already had access to an insured vehicle. A power analysis and robustness checks supported the null result.

How to read the mixed evidence

None of these studies found a collapse in the uninsured rate, and none found a premium increase attributable to the law. The most defensible summary is narrower than either side's talking points:

• The license brought many people into the DMV's records, and one study linked that to fewer hit-and-runs.
• The effect on insured rates is small enough that two county-level analyses could not reliably detect it.
• Premiums in California did not measurably change in the one study that tested for it.
• Results from California may not carry to states with different licenses, document rules or insurance verification. The 2018 report explicitly says it used county populations as a proxy for the unavailable individual data.

How insurers may treat these drivers

Insurers price on risk factors the state allows them to use. For a driver who holds one of these licenses, the typical factors are the same as for anyone: driving record, years licensed, prior insurance, vehicle, location and coverage. A newly licensed adult generally gets a rate shaped by thin history, which is why premiums can be high even when the driver is careful.

Whether a particular insurer may decline an applicant, or a state restricts underwriting on immigration status, is a matter of that state's insurance and civil-rights law. This article does not assert a rule for any state. If you think an insurer treated you unfairly, the state's insurance department takes complaints, and a licensed attorney can advise on discrimination claims. Use the state requirements tool, state car insurance requirements lookup, to find your regulator.

What a driver can do about price is the same as for others with thin records: compare quotes with identical limits, ask about discounts, ask whether the insurer will count documented foreign driving experience, and keep coverage continuous so that a gap does not become a new surcharge. The guide on state low-cost auto insurance programs explains state programs for income-qualified drivers. California's program is open to income-eligible drivers, and the 2018 report estimates that roughly 11 percent of its 2014 to 2017 applicants could have been newly licensed under AB 60.

Options for people who have no license

Not everyone can get a license, and not everyone with a license can afford a policy. For an unlicensed driver, insurance options depend on the car and the insurer.

• Insure a car you own with another licensed driver listed. Progressive says it is possible to get car insurance with no license, that some companies are wary, and that some states require at least one licensed driver on the policy. Some insurers let the owner name another person as primary driver; others do not.
• Be listed as an excluded driver. The insurer will not pay claims when the excluded person drives. Progressive warns that it is illegal to drive without a license even if the vehicle is insured.
• Keep coverage on a car that others drive. A spouse, adult child or caregiver may be the regular driver; the policy should name them.
• Understand non-owner coverage. It is for licensed drivers who do not own a car, so it is generally not an answer for a person who lacks a license.

The real exposure is the gap. If an unlicensed person causes a crash while driving, the policy may not respond, and the person is personally responsible for the damage. Our article on caused a crash without insurance: personal liability and judgments describes judgments and what follows. For the victim, the main protection is their own UM coverage, discussed in uninsured motorist claims: consent to settle, arbitration and proof.

A worked example of why a license does not equal a policy

Say a county has 100,000 registered cars and 8,000 of them are uninsured. After a state begins licensing people regardless of status, 3,000 previously unlicensed residents get licenses. Suppose 2,000 of them already drove a family member's insured car, 500 drive a car that was already insured in someone else's name, and 500 buy a policy for a car that was previously uninsured. The uninsured count falls from 8,000 to 7,500, or from 8.0 percent to 7.5 percent. A county-level study comparing this county with a neighbor that has the same trend would need very large data to detect a half-point change, and other factors such as the economy, enforcement and premium changes can easily swamp it.

These numbers are invented to show the arithmetic, not to describe any real county. The point is that the policy question has two parts: how many new drivers would be insured anyway, and how many cars switch from uninsured to insured. The Lueders and Mumper paper's explanation, that most newly licensed people were already driving and often had access to an insured vehicle, matches the first part.

Steps for a newly licensed driver

1. Confirm the credential. Ask the motor vehicle agency whether your card is a standard license or a driving privilege card, and whether it allows registration of a vehicle in your name.
2. Gather what insurers ask for. Have your license number, date of birth, address and VIN. Documents from your home country may show experience; ask whether the insurer credits it.
3. Request quotes at the same limits. Compare liability limits, uninsured motorist coverage and deductibles.
4. Ask about eligibility for a low-cost program. These programs are state-run and the rules vary.
5. Set up payments to avoid a lapse. A cancellation for non-payment can produce a lapse and reinstatement costs. Our article on after an insurance lapse: notices, suspension and reinstatement explains the notices.
6. Keep proof in the car. Electronic proof is accepted in many states.

Common questions

Does getting a license make insurance mandatory?

The license itself usually does not; the registration and the act of driving a registered vehicle do. In states that require liability insurance, the requirement attaches to operating or registering a car, and penalties vary. Some of the licensing laws listed above, such as Rhode Island's and Virginia's, add insurance conditions to the license. See uninsured drivers by state for rates and the state guides for penalties.

Will a license from one of these programs raise my premium?

Not because of the license. The one peer-reviewed study that tested California's law found no measurable effect on premium costs. Your own price depends on your record, vehicle, age and location. A new license with no history can be expensive, which is a different issue.

Are these licenses accepted for federal identification?

Generally not. NCSL notes that Maryland, Minnesota and New York cards are marked as not valid for federal identification or federal purposes, and that Utah and Delaware cards are driving privilege cards, not identification. The cards are for driving and, in some states, state-level ID.

Do the laws apply the same way everywhere?

No. Documents, card types, durations and insurance conditions vary, and the legal landscape is contested and can change. Treat a list like this one as a starting point and confirm the current rule with the state's DMV.

Key takeaways

• NCSL's March 2023 update lists 19 states and the District of Columbia that license drivers regardless of immigration status, with effective dates from 1993 to 2023.
• California studies disagree on hit-and-runs and found no clear change in the uninsured rate; the peer-reviewed study found no measurable effect on insurance uptake or premiums.
• A license does not itself produce a policy, and many newly licensed drivers were already driving an insured car.
• Insurers price on record, experience and vehicle, so a thin history means higher rates; shop at identical limits.
• Unlicensed people can sometimes insure a car they own with a licensed driver listed, but driving unlicensed is illegal even when the car is insured.