Making sure you have the most affordable car insurance can be tricky , but what happens if you are unable to pay for the cost of your premium, cancel your previous policy before your new one starts, or if your carrier cancels your car insurance causing you to have a insurance lapse.
At A Plus insurance we are always prepared to assist you no matter the circumstance!
Car insurance with lapse
What happens if I let my insurance lapse
Trying to reinstate your policy when your insurance lapse can create specific issues down the line.
The penalties varying from state to state include an increase in premium which could be as small as eight percent if it’s been a couple of days to thirty-five percent if it’s been over a month.
Also, The main issue is you leave yourself open to license/registration suspension, civil fines, and SR22 filing and can be listed as a high risk driver.
When you’re in this predicament the best call to action would be to try and get into contact with an agent with the carrier and have a discussion about what would be the next steps to reinstate your insurance policy, or you can shop around different carriers to try to find better rates and coverages if your agent is requiring you to start a new quote again due to too many days in your lapse.
However, it is recommended that you avoid driving on the road uninsured at any cost because it is dangerous and also illegal.
The consequences, depending on what state you reside in, can range from losing your license entirely until you obtain your insurance or having your car impounded.
Furthermore, if in any event that you are driving uninsured and are in an accident you could potentially be faced with jail time.
The only exception to not having insurance would be if you are studying abroad or if you are in the military and could possibly not be needing to use your vehicle as much.
The solution to this would be to have a suspension on your policy until further notice
What is a SR22?
When you have a insurance lapse you’re typically to an insurance carrier considered a high-risk driver and need a SR22 to be allowed to drive on the road legally again.
A SR22 form isn’t necessarily an insurance policy alone, it is a document included into your policy written by your insurance agent with the carrier showing that you have the requirement for car insurance.
A SR22 is required for drivers who have records such as a DUI or DWI, driving with a suspended license, too many faults or accidents, reckless driving, too many repeated offenses in a short period of time, failure to pay child support, your insurance doesn’t meet the state requirement, and driving without insurance.
However, when you obtain sr22 insurance there’s very limited coverage that comes with it such as it will not cover the cost of repair for your personal vehicle nor the vehicle of the person also involved in the accident but it will cover the drivers liability to others who may be involved in the accident.
Different types of SR22
When shopping around for SR22 after an insurance lapse it’s important to differentiate between the types and find out which exact form you need depending on your situation. Listed below are all the different types of SR22 insurance:
Owner SR22: when you obtain owner sr22 it is typically required for individuals who drive the vehicle and hold insurance for said car.
The SR22 is needed as proof to show that you in fact own your vehicle and that the insurance is under your name.
However, if you are needing insurance due to the fact that your vehicle didn’t have it previously you would need to make a quote for car insurance first before you actually get the sr22 filing and you do have insurance you would just need to talk to your insurance agent about adding that to your policy.
Non Owner SR22: However, with non owner insurance, it is required when you don’t have a car but are still needing to be insured in an event you are driving another car in the future.
Also, this insurance is typically a lot cheaper due to the fact that it is the minimum requirement to carry liability insurance.
Operator SR22: Furthermore , Operator sr22 is needed when you own more than one vehicle and are needing them to be insured.
This coverage is very much needed in any event you are driving any of the cars and are in an accident. The only con to this coverage is that it is the most expensive one out of the three.
What are the penalties for an insurance lapse?
When you let your car insurance lapse you leave you risk the chance of your driving privileges being revoked. Down below are some fees and penalties that are made when you refuse to make payments on your policy:
| Alabama | $200 license reinstatement penalty, then $400 second time | |
| Alaska | $100 license reinstatement penalty for first lapse | |
| Arizona | $50 license reinstatement penalty | |
| Arkansas | $100 license reinstatement penalty | |
| California | $14 registration reinstatement penalty | |
| Colorado | $40 license reinstatement penalty | |
| Connecticut | $200 license reinstatement penalty | |
| Delaware | $100 lapse penalty per vehicle, $5 per day after 30 days | |
| District of Columbia | $150 lapse penalty, $7 per day after 30 days | |
| Florida | $150 registration and license reinstatement penalty for first lapse, $250 for second, $500 for third | |
| Georgia | $25 penalty for lapse longer than 10 days, then $60 after 30 days | |
| Hawaii | $20 license reinstatement penalty | |
| Idaho | $85 license reinstatement penalty | |
| Illinois | $100 reinstatement penalty | |
| Indiana | $150 reinstatement penalty first offense, $225 second offense, $300 for third offense | |
| Iowa | NA | |
| Kansas | $100 reinstatement penalty first offense, $300 for second offense within one year | |
| Kentucky | $40 registration reinstatement penalty | |
| Louisiana | $125 insurance lapse penalty for 30 days, $225 for 31 to 90 days, $525 over 90 days, up to $850 max | |
| Maine | $50 license reinstatement penalty, $20 to $30 additional penalty, $35 registration penalty | |
| Maryland | $150 penalty first 30 days, $7 per day after 30 days, registration penalty up to $25 | |
| Massachusetts | $500 reinstatement penalty | |
| Michigan | $50 registration penalty | |
| Minnesota | $30 license and registration reinstatement penalty | |
| Mississippi | $30 license reinstatement penalty | |
| Missouri | $20 license reinstatement fee | |
| Montana | No charge for first insurance lapse | |
| Nebraska | Reinstatement penalty of $500 | |
| Nevada | $250 penalty for insurance lapse under 30 days, $250 for lapse between 31 to 90 days, $500 for lapse between 91 to 180 days, $1,000 for lapse more than 181 days | |
| New Hampshire | NA | |
| New Jersey | Restoration penalty of $100 | |
| New Mexico | Registration reinstatement penalty of $30 | |
| New York | $8 per day civil penalty for insurance lapse under 30 days, $10 per day for next 30 days, $12 per day for 30 days after | |
| North Carolina | $50 civil penalty first insurance lapse, $100 for second lapse, $150 for third lapse | |
| North Dakota | NA | |
| Ohio | $60 penalty, $100 reinstatement penalty for first offense, $300 for second offense, $600 for third offense | |
| Oklahoma | $125 administrative penalty, $275 reinstatement penalty | |
| Oregon | $75 license and registration reinstatement penalty | |
| Pennsylvania | $88 restoration penalty | |
| Rhode Island | $50 reinstatement penalty | |
| South Carolina | $5 per day insurance lapse penalty, up to $200 | |
| South Dakota | $50 to $200 license reinstatement penalty, depending on time lapses | |
| Tennessee | $50 administrative penalty, $65 license and registration restoration penalty | |
| Texas | $100 reinstatement penalty | |
| Utah | $100 reinstatement penalty | |
| Vermont | $71 license reinstatement penalty | |
| Virginia | $145 registration reinstatement penalty | |
| Washington | $75 reinstatement penalty | |
| West Virginia | $100 registration reinstatement penalty | |
| Wisconsin | $60 license reinstatement penalty | |
| Wyoming | $50 reinstatement penalty |
When it comes to having a insurance lapse it’s good to research what type of SR22 you’re needing to file to make the best decision meant for you and find the best rates possible in your state.
No matter what your choice is, our agents at A Plus Insurance are happy to help!
Last Updated on by Lauren Mckenzie