by Aya Musa

Insurance is a concept of shifting the risk from the insured people to the insurance carriers.  Insurance companies are created to make profit for their owners by pooling these risks and charging the insured people some premium money in return of promise to pay the claim in case of a covered loss. Insurance companies are not in the business of setting rules and laws of driving privileges.

On the other had, local governments set the rules regarding driving privileges. Like other governments, the Secretary of State in Illinois dictates on Illinois residents the rules of obtaining, keeping, revoking and reinstating the driving privileges, or the driver's license. The last thing on the agenda on the Secretary of State if insurance companies make or do not make profit.

The issue of offering auto insurance coverage for unlicensed operators in Illinois may be a surprise to many people. However, insurance companies have discovered that insuring people with no driver's licenses may not be as bad as thought originally.

Major Characteristics of Unlicensed Auto Operators

It should be empathized that unlicensed operators refer to people who have never been issued any driver's license in the United States. For that reasons, all operators who were issued in the past a driver's licenses that have been later expired, suspended or revoked, for any reason, are not included in this definition. Unlicensed operators refer to people who are over 16 years of age and never had the opportunity to get licensed (no time, undocumented aliens, etc.)

Many car insurance carriers are not just offering auto insurance for unlicensed operator, but also offer it at lower rates than the licensed counterpart. This may seem another surprise. There are certain theories that underline the reasons why car insurance may offer cheaper auto insurance rates for unlicensed drivers.

Theory 1. Unlicensed operators are more careful on the road. Because they do not have driving privilege unlicensed operators are more careful for fear of being pulled over by law enforcement  and be fined for driving without valid license.

Theory 2. Unlicensed drivers are less likely to file claims. Undocumented aliens, documented aliens with foreign and international licenses, and other simply unlicensed operators are less likely to file bodily injury and comprehensive &  collision claims.

The Chicago auto insurance market is abundant of individual operators with no driving privileges. It is clear that this market segment of unlicensed driver is the target of several insurers which offer significant discounts for this segment.
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