Uphando Forensics

Navigating Expired Driver’s Licences and Insurance Claims

In the face of persistent delays in vehicle and driver’s license renewals, the question of whether insurance will pay out when a license has expired looms large. According to the guidance from the Ombudsman for Short-term Insurance (OSTI), insurers generally shouldn’t outright reject claims solely based on expired licenses.

Since May 2007, the OSTI has maintained that each insurance claim should be evaluated on its individual merits. While having an expired driver’s license or license disc might not automatically disqualify a claim, insurers may assess the specifics of a case. In certain situations, they may deem the absence of a valid license as material to the claim, leading to a potential rejection.

It’s essential to note that, although the law doesn’t explicitly require an up-to-date driver’s license card, individual insurance policies may have stipulations. Many car insurance policies, for instance, state that payouts are contingent on the driver’s license card being current. If your license has expired, carefully review your policy and inform your insurance company to confirm ongoing coverage in case of an accident or theft. Ensuring that your insurance aligns with your current license status is vital for peace of mind on the road.