There are several things that can happen if your car insurance lapses. A lapse can result in a rate increase, repossession of your car, a fine or even a suspended license. In addition to this, if you cause an accident after your car insurance lapsed, you will be liable for all the costs.
If you are still driving the vehicle, DMV will probably catch up to you at some point, and if you are stopped by the police for some reason or wind up in a crash, you could be looking at a visit with the local judge or a ride to the police station. If the vehicle is not being driven and will not be driven, I would still question the decision to drop insurance because if something happens to the vehicle you will not have funds to repair it (unless your savings will cover the expense).
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