What happens if my car insurance lapses?

If your car insurance lapses and you are not eligible for a grace period, you are considered uninsured and unable to drive legally. Having a lapse in car insurance coverage can also result in higher premiums moving forward and legal penalties.

Consequences If Your Car Insurance Lapses

• Penalties for driving without insurance range from fines up to $5,000 to jail time.
• If your car insurance lapses, you may experience higher premiums when you go to get a new policy.
• If your state was notified about your lapse in coverage, you may face additional fines or license suspension.
• You may need an SR-22 to reinstate your driving privileges after a lapse in car insurance.

It’s important to note that some insurers have a grace period after a missed payment or if you forget to renew your policy. If you are within a grace period, you should be able to make a payment and have your insurance fully reinstated without any consequences. If you are past the grace period, or your insurer does not have a grace period, you should get a new car insurance policy as quickly as possible.

To learn more, check out WalletHub’s guide to the dangers of driving without insurance.

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).