Generally speaking the penalty is revocation of your driver's license. This will typically take place if you do not provide the DMV with proof of insurance, typically done with form SR-22.
If you lapse coverage without having additional coverage established the insurer will typically notify the DMV as they are legally required to do. The DMV will then begin revocation if you cannot provide proof of insurance.
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If you lapse coverage without having additional coverage established the insurer will typically notify the DMV as they are legally required to do. The DMV will then begin revocation if you cannot provide proof of insurance.