- Car Insurance Lapse Explained
- What happens if I let my Insurance Lapse
- What is a SR22 with an Insurance Lapse?
- Different Types of SR22 Insurance
- What are the Penalties for an Insurance Lapse?
- Can a lapsed insurance policy be reinstated?
- FAQs About Insurance Lapse at A Plus Insurance
- What We Do at A Plus Insurance
- How to Get a Free Quote and Save!
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What happens if I let my Insurance Lapse
If you allow your insurance to lapse, you could face several consequences, including:
- Increased Premiums: Penalties for a lapse in coverage vary by state but can result in premium increases ranging from eight percent to thirty-five percent.
- License/Registration Suspension: Letting your insurance lapse leaves you vulnerable to license or registration suspension, civil fines, and the need for SR22 filing.
- High-Risk Status: You may be classified as a high-risk driver, impacting your ability to obtain affordable insurance in the future.
When faced with a lapse in coverage, consider the following actions:
- Contact Your Insurance Agent: Reach out to your insurance carrier to discuss reinstating your policy and determine the next steps.
- Shop Around: Explore options with different carriers to find better rates and coverage if your current agent requires a new quote due to the lapse.
- Avoid Driving Uninsured: Driving without insurance is dangerous and illegal, with potential consequences ranging from license suspension to vehicle impoundment and even jail time.
Exceptions to driving uninsured may apply if you are studying abroad or serving in the military and not using your vehicle regularly. In such cases, consider suspending your policy until needed.
What is a SR22 with an Insurance Lapse?
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.
An insurance lapse occurs when your policy coverage expires without being renewed or replaced with a new policy. During this period, you are without active insurance coverage, leaving you vulnerable to various risks and consequences.
Drivers often face insurance lapses due to missed payments, policy cancellations, or failure to renew on time. When your policy lapses, you may encounter several significant issues:
- Increased Premiums: Reinstating your policy after a lapse can lead to higher premiums, depending on the duration of the lapse and your insurance provider’s policies. This increase can range from a minor uptick to a substantial hike in rates.
- Legal Consequences: Driving without insurance is illegal in most states and can result in severe penalties. These may include fines, license or registration suspension, SR22 filing requirements, or being labeled as a high-risk driver.
- Limited Coverage: While insurance lapses, your vehicle remains uninsured, leaving you financially responsible for any damages or injuries in an accident. Without coverage, you risk facing significant financial losses if an unexpected event occurs.
To avoid the negative implications of an insurance lapse, it’s crucial to maintain continuous coverage. Stay proactive by keeping track of your policy renewal dates, making timely payments, and promptly addressing any issues with your insurance provider.
Different Types of SR22 Insurance
When seeking SR22 insurance after an insurance lapse, it’s crucial to understand the different types available and determine which one suits your needs. Here are the various types of SR22 insurance:
- Owner SR22: This type of SR22 is necessary for individuals who own and drive their vehicles. It serves as proof of ownership and insurance coverage for the vehicle. If you previously lacked insurance for your vehicle, you’ll need to obtain a car insurance quote before acquiring the SR22 filing.
- Non-Owner SR22: Non-owner insurance is essential for individuals without a car who still require coverage when driving other vehicles. This type of insurance is typically more affordable as it provides minimum liability coverage.
- Operator SR22: Operator SR22 is vital for individuals who own multiple vehicles and need insurance for all of them. This coverage ensures protection while driving any of the owned vehicles. However, it tends to be the most expensive option among the three types.
When selecting the appropriate SR22 insurance type, consider your specific circumstances and driving needs to ensure adequate coverage and compliance with legal requirements.
What are the Penalties for an Insurance Lapse?
| 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 |
Can a lapsed insurance policy be reinstated?
Reinstating a lapsed insurance policy is possible, but it comes with specific challenges and consequences. Here’s what you need to know:
- Penalties Vary: Depending on the duration of the lapse and your state’s regulations, penalties can range from a moderate increase in premiums to license/registration suspension, civil fines, and the need for SR22 filing.
- Risk of Being Uninsured: Letting your insurance lapse leaves you vulnerable to legal and financial repercussions, including potential license suspension, fines, and being labeled as a high-risk driver.
- Reinstatement Options: You can try to reinstate your policy by contacting your insurance agent or explore alternative coverage options with different carriers to find better rates and coverages.
Remember, driving uninsured is risky and illegal. Always prioritize maintaining continuous coverage to avoid potential penalties and ensure protection on the road.
Eligibility Criteria for Home and Auto Insurance Discounts
- Multi-Policy Discount: Bundle your home and auto insurance policies to save on monthly premiums. Text Us to learn more.
- Good Driver Discount: Maintain a clean driving record with no accidents or violations to qualify for lower rates. Call us at 1.888.445.2793 to check your eligibility.
- Safe Vehicle Discount: Vehicles equipped with safety features like airbags, anti-lock brakes, and anti-theft systems can qualify for lower insurance rates. Text Us for more information.
- Good Student Discount: Full-time students with a GPA of 3.0 or higher can receive special discounts on auto insurance. Call us at 1.888.445.2793 for details.
- Claims-Free Discount: Homeowners with no recent claims on their insurance can enjoy reduced rates. Text Us to see if you qualify.
- Military Discount: Active duty and retired military members may be eligible for exclusive discounts. Call us at 1.888.445.2793 to learn more.
- New Home Discount: Recently built homes with modern safety features may qualify for reduced homeowners insurance rates. Text Us for a personalized quote.
- Low Mileage Discount: Drive fewer miles annually to qualify for lower auto insurance premiums. Call us at 1.888.445.2793 for an estimate.
- Home Safety Device Discount: Install smoke detectors, fire alarms, or security systems in your home to reduce insurance costs. Text Us to discuss your options.
- Pay-in-Full Discount: Pay your insurance policy in full upfront to receive a discount on your premium. Call us at 1.888.445.2793 for payment details.
FAQs About Insurance Lapse at A Plus Insurance
What is an insurance lapse, and how can it affect me?
An insurance lapse occurs when a policyholder fails to renew or maintain their insurance coverage. It can have serious consequences, including potential legal and financial penalties. To understand the implications of an insurance lapse and how to avoid it, contact our office at 888-445-2793 for guidance.
How can I prevent an insurance lapse?
Preventing an insurance lapse involves timely payment of premiums and policy renewal. Our experienced agents at A Plus Insurance can help you set up reminders, choose the right payment methods, and ensure continuous coverage. Contact our office at 888-445-2793 for assistance in avoiding an insurance lapse.
What should I do if I’ve experienced an insurance lapse?
If you’ve had an insurance lapse, it’s crucial to take immediate action to reinstate coverage. Our team at A Plus Insurance can help you navigate the process, find suitable solutions, and get your insurance back on track. Contact our office at 888-445-2793 for guidance on addressing an insurance lapse.
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Last Updated on by Camron Moss