Accidents happen quickly, but what happens if you are involved in an accident without a valid driver’s license? Will the insurance pay in such a case? The answer is more complex than you might think. 
Car Accident Without Driver's License: Insurance Coverage
Anyone who drives without a license and causes an accident must expect serious consequences. In addition to criminal penalties such as fines or imprisonment, there are also civil claims, especially from the injured parties. But what role does insurance actually play in this scenario?
Coverage of Motor Vehicle Liability Insurance
The good news first: The motor vehicle liability insurance, which is mandatory for every vehicle owner in Germany, generally pays even if the driver does not have a driver’s license. This means that the insurance will cover the damages that the driver without a license has caused to third parties. This is legally enshrined in § 1 of the German Compulsory Insurance Act (PflVG).
“Motor vehicle liability insurance serves to protect the injured parties and is intended to ensure that they are compensated even if the person who caused the accident is not able to do so themselves,” explains Dr. Markus Schmidt, a specialist lawyer for traffic law.
Recourse Claims by the Insurance Company
However, this does not mean that the driver without a license is off the hook. The insurance company can demand recourse from them. This means that the insurance company reclaims the money it paid to the injured party from the driver. The amount of recourse can be considerable and amount to several tens of thousands of euros. 
Insurance Recourse Claims After Accident Without License
“The insurance company usually has a right of recourse if the driver acted with gross negligence or intent,” says Dr. Schmidt. “Driving without a driver’s license is generally considered grossly negligent.”
Exceptions to Insurance Coverage
However, there are also cases in which the insurance company can refuse to pay. This is the case, for example, if the driver stole the vehicle or if they were under the influence of alcohol or drugs.
Further situations in which the insurance company can refuse coverage:
- The driver caused the accident intentionally.
- The driver has given the insurance company false information, for example when stating the regular driver.
- The vehicle was not approved for road traffic.
What to do in an Accident Without a License?
After an accident, you should in any case remain calm and adhere to the general rules of conduct in the event of traffic accidents. This includes securing the accident site, providing first aid and calling the police. Under no circumstances should you admit to the police that you do not have a driver’s license.
Seek legal help in good time to optimally protect your rights.
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Our tip: If you have any questions about insurance coverage, please do not hesitate to contact us. Our experts for car insurance are always available to advise and assist you.
