Do I need a driver's license to borrow money for a car?

I want to get a car loan, but I don't have a driver's license. Will a lender still let me borrow money?

Answer
Fortunately, there’s no law that requires you to have a driver’s license to get a car loan. As long as you have strong credit, steady income, and a debt-to-income ratio of 43% or less, you’re likely to get approved for a loan.
The real problem for you won’t come with the loan itself but with getting car insurance. Many car insurance companies are leery of giving a car insurance policy to someone without a license, as they consider it a big risk.
If you’re buying the car to drive yourself, you may have to wait until you have your license to get the car loan since you’ll need proof of insurance in order to drive the car off the lot.
If you’re buying the car for someone else, though, some car insurance companies may provide a policy in your name, although you’ll explicitly be named as an excluded driver. That means you won’t be covered in any situation, so you can’t drive the car legally.
Regardless of your situation, you’re going to need car insurance for yourself at some point. Getting the right insurance is easy—just use Jerry! As an end-to-end car insurance broker, Jerry can take care of the paperwork and get you on the road without any added hassles.
Eric Schad
Answered on Nov 15, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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