State Farm Auto Insurance Practice Test

Which outcome might follow if a driver does not obtain a U.S. license within one year?

1. Their coverage will be enhanced

2. They may face non-renewal of their insurance

3. They will receive a premium discount

4. They will be automatically eligible for Mutual Insurance

The correct answer is: They may face non-renewal of their insurance

If a driver does not obtain a U.S. license within one year, they may face non-renewal of their insurance. Insurance companies, including State Farm, often have specific requirements regarding the licensing status of their policyholders. A valid U.S. driver’s license is typically necessary for maintaining coverage because it is a legal requirement to operate a vehicle. Without this license, the insurer may consider the driver a higher risk, which can lead to the decision to not renew their policy at the end of the coverage term. This is especially pertinent as maintaining a valid license demonstrates responsibility and reduces the likelihood of incidents that could lead to claims. Therefore, the failure to obtain a U.S. license within the designated timeframe has direct implications on the driver’s insurance coverage status.