At first glance, the question, “do you need a license to buy a car?” seems to be one of those 'putting the cart before the horse' types of questions. After all, why buy a car if you cannot drive it? While this might not be a typical circumstance, it's not unheard of.

In fact, there are many reasons why someone who doesn’t have a driver’s license may wish to purchase a car. And, the good news is yes, you can buy a car without a driver’s license. This blog digs into the details including what you need to know about buying a car without a license and things to keep in mind for car insurance.

Not only will you need proper registration of said vehicle, you'll also want to look into proper insurance coverage. No matter the reason why you're an unlicensed car owner, you'll still want to have proof of insurance in the vehicle at all times. This way, should there be any sort of traffic violation while your vehicle is in use, you'll be covered since you're the owner. Prospective lenders should be aware that insurance follows the vehicle, not the driver. So as the person who owns the vehicle in question, it becomes your financial responsibility.

If you don't already have an auto insurance company lined up, we have a free tool that will let you compare quotes from different companies so that you can get the best deal on an auto insurance policy.

Do you need a driver’s license to buy a car?

Although it might not be the most common situation your car salesperson has encountered, the requirement for a valid license is to operate a vehicle. It isn’t required for the purchase.

Of course, this means that if you don’t have a driver’s license, you won’t be able to test drive the car. Any time you drive a car, you must have a license and in almost every state you’re also required to carry an active car insurance policy.

Here are some examples of situations where someone might be interested in purchasing a car, despite not having a driver’s license themselves:

• Parent Purchasing a Car: A parent or guardian purchasing a vehicle for a family member who has a license but cannot afford a vehicle, or whose credit is insufficient to secure a loan,
• Antique/Classic Car: Someone who is purchasing a vehicle with no intent to ever drive it, such as an antique or classic car, either as a collector or for investment purposes,
• Business Owner: A business owner who purchases a vehicle for the business for employees to drive,
• Caregiver Car: Someone who has recently given up a driver’s license due to a health reason, but wants to provide a vehicle for a designated caregiver to run errands,
• Childcare Caregiver Car: A non-driving parent who wishes to purchase a car for a nanny or babysitter to use in the course of their child-care duties,
• Private Driver as Transportation: Someone who has had their driving privileges revoked may wish to purchase a vehicle for a chauffeur or driver to provide their transportation, or
• Soon-to-be Driver: Someone who is in the process of getting their driver’s license and wants to make sure they have a car once they pass their driver’s license requirements.

As you can see, although it’s not common for someone who doesn’t have a license to purchase a vehicle and not be the primary driver, it isn’t outside the realm of possibility. You'll just want to make sure that whoever gets behind the wheel is a licensed driver. Even if the vehicle has been purchased for business purposes, buyers should not allow an unlicensed driver to drive.

What are the car insurance requirements if you buy a car without a license?

The real challenge that someone will face when scouting the market for an auto policy is going to be the vast amount of choices they will be presented with. Insurance requirements will vary depending on the situation. For example, the purchase of a car that is never intended to be driven, such as an antique or classic car as listed above, will require very different insurance than a car that will be driven every day.

Given that car insurance takes into account a variety of factors, which typically includes a driving record, someone without a driver’s license may have to spend a bit more time explaining the situation to an insurance company.

If you’re trying to insure a classic or antique car, things like the age of the vehicle and how rare it is will likely factor into how much it will cost to insure. These factors will likely be weighted more heavily than elements such as the driver’s marital status or credit score. Where the vehicle is stored will also matter, and you’ll probably be purchasing an insurance policy specifically designed for covering collectors’ automobiles.

On the other hand, if you’re purchasing a car without having a license in order to be chauffeured, your insurance rates and auto insurance coverage will be significantly affected by the driving record of the person you’ve hired to drive that vehicle. It's going to be their driving history under scrutiny, not yours.

Regardless of your situation, if you’re looking to buy a car without having a driver’s license, plan on spending more time during the car purchasing and insuring processes.

This is an uncommon situation, so there will likely be more questions and possibly additional documentation requirements asked of you to complete the transactions. Call your local Department of Motor Vehicles or town clerk to find out what, if any, documentation you might be asked to provide. You might also consider contacting the dealership if you know where you’ll be buying the car, and contact your insurance company so that any questions are answered before you make your vehicle purchase.

The answer to the question, “can I buy a car without a license?” is yes, but that doesn’t necessarily mean it will be a fast and easy purchase. Buying a car without a license is not the routine way of doing things. You should make sure to do your research ahead of time. This way you'll not only have vehicle ownership under your belt, but you'll be able to have everything else sorted too. Enter the purchase with everything you’ll need to complete the transaction. This includes the correct insurance, and anything that unlicensed buyers may be required to present in order to purchase the vehicle. Any additional costs that you might have should be tallied up front so that you can fit everything into your budget.

Remember, car insurance is required in most states in order to legally drive the vehicle. Make sure you follow all motor vehicle and insurance laws. If you buy a car from a dealership, you may need to register your car and have insurance before you can take the car home. If you need to purchase car insurance, visit Clearsurance’s car insurance rankings page to find the best car insurance in your area, according to customer reviews.

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