State laws and notification systems differ so in some states an insurance company may be notified by the courts or DMV if a person has been convicted of driving without a license or of driving on a suspended license.

In general though, most states do not inform the insurance company of a person that was charged with these types of violations. Normally an insurance company would find out this information when they pulled their policyholder's motor vehicle record (MVR). An MVR is usually pulled by an insurance provider at the inception of a policy and then again at renewal time.

While we are not lawyers or know every state's laws in depth, we do not see how it would be illegal for a person to inform an insurance carrier if they know of a person driving without a license or on a suspended license. If the person was charged but not yet convicted then an insurance company would not yet see this offense on the person's MVR since they would need to have a conviction of the charge for the violation to go on their record.

If a person is fond guilty of this type of charge then the insurance company may drop or cancel the person's coverages if state laws allow since the person does not have a valid license to drive their vehicle with.

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