An insurance lapse means that there is no liability insurance coverage for a vehicle registered in New York State for a period of time. If there is a lapse of insurance for a vehicle registered to you, the DMV can suspend your registration and driver license.
What can cause an insurance lapse?
Any amount of time that your vehicle is registered but not insured can cause a lapse in your insurance coverage. An insurance lapse can occur between the date your insurance is cancelled and the date
• your new insurance begins
• you surrender your vehicle plates
• your registration expires
• other proof' of insurance (for example, a vehicle registered in another state, or a vehicle repossessed or impounded) is valid
• your insurance company reinstates your insurance coverage
A lapse in insurance coverage can also occur between the date you register your vehicle and the date your new insurance coverage begins.
If the registration suspension period is more than 90 days, you must surrender your vehicle registration and plates. The DMV will also suspend your driver license. Your driver license will be suspended for the same number of days as your registration suspension. To reinstate your driver license, you must pay the DMV a $50 license suspension termination fee.
What will happen if I drive without insurance (with lapsed insurance)?
Do not drive any vehicle that is not insured.
• you could be arrested or ticketed
• your vehicle can be impounded by a law enforcement officer
• the DMV will revoke your registration and your driver license
What will happen if I or my uninsured vehicle is in a traffic crash?
Your license and registration will be suspended, and you will need to pay fines and penalties.
If your vehicle does not have insurance and you or someone else driving your uninsured vehicle are involved in a traffic crash, the DMV will revoke your driver license and vehicle registration for at least one year.
The traffic court fine could be as much as $1,500 for driving without insurance or allowing another person to drive your uninsured vehicle. You will also need to pay the DMV a $750 civil penalty to restore your driver license if it is revoked.
How do I avoid an insurance lapse?
Remember this simple rule: no insurance, no plates!
• keep the address for your vehicle registration and driver license current with the DMV
• have liability coverage from a company licensed by the NYS Department of Financial Services and authorized by the NYS DMV (out-of-state coverage is never acceptable on any vehicle registered in New York)
• have your insurance company report any changes to the DMV immediately (for more information, see Changes to my insurance policy)
• keep insurance coverage on your vehicle for as long as it is registered in New York
• respond to DMV Insurance Letters and Orders immediately
• surrender your vehicle registration and license plates to DMV before your New York State coverage ends for any reason
If you do not have valid auto liability insurance coverage for your vehicle, you must immediately surrender your registration and vehicle plates.