If you’re considering driving without insurance, do not. In addition to the enormous financial risk you be taking when driving, a DMV N.Y. insurance lapse can result in severe penalties.
This article will discuss the entire issue of insurance lapses that occur in N.Y., including the cost, what you can do following the interruption in coverage, and methods to prevent the occurrence of lapses. The best option is to locate an insurance provider that offers you affordable coverage. We’ve reviewed hundreds of companies available today and will suggest a few of the top car insurance companies in New York later.
DMV N.Y. Insurance Lapse Overview
What exactly is an insurance lapse within New York? A gap in your car policy insurance in N.Y. indicates that you need liability insurance protection on the vehicle you are operating. This could result in a civil penalty from the Department of Motor Vehicles.
If the DMV finds an insurance gap within N.Y., a citation for driving without insurance could result in an arrest, impounded car, and suspension of your registration and license. In the event of an accident at fault, with no insurance could trigger the DMV to suspend your registration and license, and you could be held responsible for damages caused by the accident.
Although you may be able to comprehend the primary reason why you aren’t allowed to drive without the insurance coverage you need within N.Y., this guide will provide a thorough explanation of the penalties in the event of an N.Y. insurance lapse and what you should do if you are unable to pay for the insurance coverage for your vehicle.
Penalties For Lapses in Coverage by the N.Y. DMV
We’re at the bottom as far as penalties are concerned. New York law requires you to have liability insurance and a couple of other kinds of insurance. In the event of a lapse in coverage, it occurs when you do not have liability car insurance on an automobile that is registered under your name. This could happen when you buy the car you want and obtain insurance, change insurers, or follow the cancellation or non-renewal of insurance.
After the expiration of your liability insurance at one insurer, this company will notify the DMV. The ideal situation is for another company to inform the DMV you’ve received new coverage the same day. If this doesn’t happen, the DMV will issue an order of suspension. It means that your registration has been suspended, and you cannot drive your vehicle for the suspension time.
When you have your new liability insurance, your lapse is completed. You can then reply to DMV N.Y. insurance lapse letters and demonstrate that you have insurance.
Are there penalties for not having Car Insurance In New York State?
You’ll need to pay a penalty of a civil nature for every day you do not have insurance. Here’s how the costs are broken into:
- $8 per day for days 1-30
- $10 per day for days 31-60
- $12 per day for days 61-90
As you can see, you will be increased charges the longer you’ve had lapsed insurance. If you cannot pay, you can choose to surrender your plates and registration for the exact amount of time as the expiration date. In other words, if your suspension lasted for 21 days and you could not pay for it, you can surrender your registration and plates to DMV for the remaining 21 days. A maximum penalty civil for a 90-day lapse could be $900.
After 91 days or more, you can no longer pay the civil penalty fee. When you reach that point, your registration and license will automatically be suspended for the same period you expire. If your suspension lasted for 120 days, the driving privileges of your driver would remain suspended until the expiration date of 120 days. Then, you’ll need to pay a $50 suspension termination charge to renew your driver’s license.
Penalties for Driving Without Insurance in N.Y.
A penalty for not having insurance while driving in N.Y. is different. It’s still necessary to make payments to the fine, no matter how the length of time you’ve been driving without insurance. However, if an officer catches you, they can issue you a fine of as much as $1,500 or even put the person in prison for up to 15 days, based on the severity of the offense. It is also possible to be arrested if you allow someone else to drive your vehicle that is not insured.
An officer may also take your car, which will cost money to recover later. In the end, your license and registration could be suspended. It’s important to remember that this is a distinct situation from a driver’s registration or license suspension.
You’ll have to pay a $750 civil penalty to reinstate a license that has been revoked. This is much higher than the $50 required for a suspended license. You must apply for a fresh one if you want to reinstate a revoked license. It is possible to visit a DMV branch in person. Complete driving tests once more and pay the usual car registration fee.
Penalties for causing an accident Without N.Y. Car Insurance
You can now buy the latest Rolex using the money you’d be spending on costs and fines if you get in the habit of driving a car without insurance. However, it’s getting worse.
It’s a disaster to cause an accident without liability insurance. Liability covers the other party’s medical and vehicle repairs for accidents you cause. Who would pay for the cost if you didn’t be liable? It would be, at least in part.
Few drivers do not have insurance and can afford an additional $35,000 in savings accounts. However, the average cost of cars and rising health costs causing $30,000 or more in damages is easy. Because New York is a no-fault state, the other driver must apply for medical insurance through their insurance provider first. But, more is needed. This is where your liability insurance will come into play.
It’s not uncommon for one uninsured accident to cause someone to declare bankruptcy. In reality, some law firms focus on helping at-fault motorists file for bankruptcy after being accused of negligence by the victim. Does this sound enjoyable?
In addition, the state of New York also steps up the penalties for violating this law. In the event of an accident that was not insured and regardless of who was responsible, your registration and license are suspended for at minimum a year. This is in addition to the maximum penalty of $1,500 in the event of driving with no insurance. And $750 for reestablishing your license, the cost of the expired insurance, and the cost for registration of your vehicle at the expiration of the suspension. In the end, the consequences of an accident are much more severe than a DMV N.Y. policy expiration.
What to Do If You Have An Inconsistent Coverage N.Y.
If you’ve lapsed in insurance coverage for your vehicle, then you must, at a minimum, get New York coverage as soon as you are able. Refrain from fretting about bells and whistles like rental reimbursement or roadside assistance. It’s okay to buy collision or comprehensive insurance if it’s too expensive.
Consider it this way. Suppose you find the minimum coverage insurance that costs $100 per month (quite expensive for a minimum coverage policy within New York). You’ll be paying 3 dollars per day. However, the charges for a lapse begin from $8 per calendar day. One month could cost $240.
In this scenario, you don’t have any insurance currently, but you have a plan that will start within a week. Do you need to drive? No. Don’t drive your vehicle during a time of no coverage. Don’t even take it to the house of your neighbor. It’s a crime, and the penalties are harsh, as you are aware.
The Hidden Fees of a DMV N.Y. Insurance Lapse
There’s another thing you’ll need to be concerned about. What we call “hidden fees” are the cost increases you’ll be paying for insurance on your car in the coming three years following a DMV N.Y. insurance lapse.
Because the lapse has been disclosed to the DMV, auto insurance companies can look it up on your insurance records. No matter if you drove the car at the time of the lapse, the insurance companies now view you as a high-risk driver. You could pay between 20 and 50 percent more to cover insurance when the lapse appears on your record. You may be charged more when you’ve had an uninsured crash in your file.
How to Stop Insurance-related Coverage Delays
Begin by reducing the limits of your car insurance to the minimum required by the state. Full coverage will cost more than the minimum amount and, naturally. It’s also recommended to contact and speak with your insurance company. They might have suggestions to help you reduce money on your insurance If you can explain the issue.
If you are living with family or roommates, consider combining insurance policies and paying the same amount. A multi-car insurance policy that covers two vehicles will typically be cheaper than two policies with different automobiles. It is that if everything other things are equal. Don’t mix plans if you have a roommate with an unsafe driving history.
Suppose you’re considering canceling your insurance for your car while you are away for some time, but unfortunately, there’s not an easy method to accomplish this. It’s best to trade in your vehicle so that you don’t own an insurance-compliant vehicle or need to continue paying for insurance rather than try to cancel your insurance.
The most important thing to remember is that you won’t be able to end your car insurance just like you can stop the service of your Netflix subscription.
Our Tips for Car Insurance
One of the most effective ways to save money on insurance and prevent a lapse is to switch to a different provider. We’ve analyzed and evaluated the most reliable auto insurance companies available and learned that some offer special discounts for new customers. Through our investigation, we discovered that Geico and Progressive both have low rates and great options for minimum insurance coverage within New York.
In addition, you must select a firm approved to do business by the N.Y. Department of Financial Services. Also, insurance from outside the state isn’t suitable for cars registered within New York.
