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Would the insurance company settle the accident claim if the car carried insurance but the driver did not have a proper driving license?

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If the car had car insurance policy but the driver did not have any valid driving license, still the insurance company would pay for the damages and injuries of both parties. However, they would invariably make it up when the car policy comes up for renewal. They would definitely cite this incidence and demand a higher premium. Hence, it should be ensured that the person driving the car possesses a valid driving license.