What Happens If I Have A Lapse In Auto Insurance?

  1. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    This can be different state by state, but I can advise regarding Connecticut.  If you let your car insurance lapse here, a couple of things will occur.  First, because the CT Department of Motor Vehicles requires by law that anyone who registers a car here must have and maintain car insurance, such a lapse can cause you serious problems down the line.  Here, insurance companies and DMV share information so when a policy lapses, DMV is notified by your insurance company.  DMV will send a letter requiring you to provide proof that coverage was maintained and if you cannot provide such proof, regardless of how long the lapse, you will be fairly heavily fined.  Secondly, when you do decide to establish car insurance again, you may find that it will cost you more than it did before the lapse.  This is because companies have underwriting requirements that stipulate that one must maintain continuous coverage for at least the previous 6 months in order to qualify for standard rating.  If that cannot be proven, you will end up with a higher risk carrier for at least 6 months and will pay a much higher premium that you have been used to paying.
    Answered on October 18, 2013
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  2. 16470 POINTS
    David Osgood
    Agent, Rural Mutual Insurance Co., Union Grove, WI
    Like Tom, I can provide information for the state the I am licensed in which is Wisconsin. As of this point Wisconsin does not require proof of insurance when registering a vehicle of getting your license unless you have had incidents on your MVR then an SR-22 may be required. If you have had a lapse in coverage you will more than likely have to secure coverage with a carrier that accepts higher risk clients and pay a higher premium.
    Answered on October 18, 2013
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