Insure your license

Worried you might lose your driver’s license? Well, now you can take out insurance so that if the worst happens you’ll still be able to get from A to B.

Called a Loss of License Assistance policy and underwritten by National Underwriting Agencies P/L this innovative insurance product is aimed primarily at driver’s who rely on having a valid license to earn a living. Other drivers with three points or less, however, might also be interested in this type of product.

Types of driver's license insurance

There are two types of driver's license insurance cover – Driver 500 and Driver 1000 – with different benefits and prices.

Driver 500 Cover includes:

• Payment of up to $500.00 per month for alternative transport
• A maximum claim benefit of $1500.00 for alternative transport
• A claim period of three months from suspension of licence
• An excess of $100.00 per claim

Driver 1000 Cover includes:

• Payment of up to $1000.00 per month for alternative transport
• A maximum claim benefit of $3000.00 for alternative transport
• A claim period of three months from suspension of licence
• An excess of $100.00 per claim
• $100.00 Excess for each and every claim

It is only possible to claim once per policy period on both policy types.

Insuring your license - policy benefits

Depending on the type of policy a person takes out, driver’s who lose their license under strict conditions can receive a monthly payment of up to $1000 a month to pay for alternative transport while their driver's license is suspended.

License insurance prices

• You can insure against loss of license for between $10 and $30 per month.
• The annual insurance prices start at $120 and range up to $360.

Conditions

The driver's license insurance policy offering has attracted a great deal of criticism. Motoring industry observers have been saying the availability of driver’s license insurance will encourage speeding and recklessness onthe roads. However, insurers that offer driver's license insurance enforce strict terms and conditions on policy holders. These include:

• license suspension must be a result of an accumulated loss of points of not more than three demerit points per incident, eg from speed or mobile radar devices.
• All other driving offences that attract demerit points are not covered by the policy
• If a driver has already lost four or more points in one incident the driver cannot be insured.
• An insured driver who takes out a policy then loses four or more demerit points voids their cover and is no longer insured.

Who can be insured?

If you are interested in taking out driver’s license you must be

• 21 or older
• have an unrestricted Australian driving licence
• have held a full, unrestricted driving licence for at least two years
• have never lost any more than three demerit points at a time
• be a permanent Australian resident

Policies are currently available from Ezy Insure.