My Driver’s Licence Has Expired – Will Insurance Pay Out?

Oct 28, 2021

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With the continued backlog for vehicle and drivers licence renewals never seeming to come to an end, claims can be rejected should one of the parties involved in an accident is found to have an expired licence, whether it be for the driver or for the vehicle.

Insurers follow the guidance provided by the Ombudsman for Short-term Insurance (OSTI) who has from as far back as May 2007 ruled that insurers should not refuse to entertain the claim if the driver’s licence or licence disc has expired. Each individual claim is judged according to its own merits, and in some instances after examining the particulars of a claim, an insurer may determine that not having a valid licence was material and therefore directly relevant to the claim. If this is the case then your claim might be rejected.

While the law doesn’t state that it’s mandatory to have an up-to-date driving license card, your insurance might. Many car insurance policies state that they will only pay out if your driver’s license card is up to date. If your driving license card has expired, read through your policy and let your insurance company know, just to make sure you’re still covered in the event of an accident or theft. Having the right insurance in place is crucial, so make sure to read through your insurance policy thoroughly to ensure that you are covered.


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