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The Hefty Prices Of Allowing Car Insurance To Lapse In New York

New York is like many states in that it requires all drivers to carry certain amounts of car insurance. Since New York is a no-fault state, one of those requirements is carrying personal injury protection. However, New York also requires a minimum amount of liability insurance. This includes bodily injury liability insurance coverage, property damage liability insurance, and underinsured and uninsured motorist liability. While it may be tempting to drive without insurance, don’t. Not only will there be the possibility of traffic fines and fees, but there are also the hidden costs associated with allowing insurance coverage to lapse as Motor 1 reports. 

A lapse in insurance coverage will trigger a civil penalty. Being caught driving without proper insurance can lead to a citation, arrest, and vehicle impoundment. Your license and registration can also be suspended. Getting into an accident without insurance will lead to the revocation of your license, and you could be liable for damages. 

The insurance company will notify the Department of Motor Vehicles that insurance has lapsed. If you’ve obtained other insurance, your new company should notify the DMV on the same day. 

If that doesn’t happen, the DMV will send the driver a suspension order. This means that the car’s vehicle registration is suspended, making it illegal to drive the car. You may have to pay a civil penalty for each day that your vehicle does not have insurance. This can get costly, at $8 per day for the first 30 days. After 30 days, the rates rise. 

If caught in an accident without insurance, the citation could cost up to $1,500 or up to 15 days in jail. There is also a $750 fee for reinstating the driver’s license, plus the aforementioned fees.

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