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Yes, insurance on a license is generally more affordable than traditional car insurance because it offers limited liability coverage without insuring the vehicle itself. This reduced scope often leads to lower premiums, making it a cost-effective option, especially for occasional drivers and non-car owners.

Here are what makes insurance on a license a more affordable option than traditional car insurance

  • Cost-effective  – The premiums tend to be lower since it focuses solely on liability coverage and doesn’t include coverage for the vehicle you’re driving.
  • Lower risk profile Insurance on a license is for those who drive occasionally or don’t own a car. This lower risk profile can translate to lower premiums than regular car insurance, which covers both the driver and the vehicle.
  • Personalized premiums – With insurance on a license, the reduced scope of coverage can lead to more budget-friendly premiums.


Traditional car insurance might be unnecessary if you don’t own a car. Opting for insurance on a license can provide the essential liability protection you need while avoiding the higher costs associated with insuring a vehicle you don’t have. Comparing quotes from different insurers can determine the cost-effectiveness for your specific situation. While insurance on a license tends to be economical, obtaining multiple quotes helps you make an informed decision that aligns with your budget and coverage requirements.