What to do when your car insurance lapses

[@juicereveal]

Geico treated me very well. I've been a on time paying customer for over three years. Went thru a bit of a hardship within the last month and could finally afford to make my payment. Of course it was three days after the policy cancelled but no worries...pay what you owe then then additional fee of the monthly payment to start the new policy again. I was worried sick but clearly it was for nothing. They said after 30 days of the cancellation is when everything kicks in.... What a relief 😮‍💨

[@tammyjones2107]

I was 38 dollars short and totally forgot about it until I got pulled over thank goodness the police was very nice understanding thanks for the video as well

[@buddyduddy4789]

Ive had a lapse for about 4 months couldnt make payments due to no employment from covid, didn't use my car at all for those 4 months, finally got insurance from progressive after getting some income then I got my first letter from the dmv stating that I have to pay fines for have the lapse. Im only 21, and this letter is the first time I've heard of the term "lapse in insurance" and first time Ive ever learned that you get fined for that. Is this in anyway forgivable? because I currently have insurance now and these fines were something I was never aware of until I gotten that letter 4 months after the lapse, this is in the state of NV.

[@ThinkInsurance]

You’ll have to call or email them to find out but NV does have a minimum fee/fine of $250 if you don’t keep a registered vehicle insured. When you cancel your insurance you are required to surrender the license plate and unregistered it. The government is very east to work with on paying fines. If they don’t remove it, see if they will let you make payments.

[@James-jt6fn]

Hey what happened next

[@Eggsec]

I had a lapse on insurance for a week(I have insurance now) I had to pay DMV a fee of $100 dollars so I played it online, BUT prior payment I was asked two simple questions; 1. was I knowledgeable about the lapse? 2, was I aware that someone other then me was driving the vehicle when it was on lapse? I was honest and answered yes to both. made the payment and got a message saying, your payment was successful posted but based on your answer you have to turn in your plates for a month immediately. mark. does this sound correct? I'm in NC I heard this state is super strict. reason for not paying, had no money I'm paying full over around $249 per month.

[@ThinkInsurance]

I’m not familiar with that rule but I wouldn’t put it past NC to do so. Some states are tougher than that. I do applaud you for your honesty but it looks like you should talk to them to see if there is another way to pay for it vs having to turn in your plates and then pay to get them back

[@katietaptto4389]

The situation I’m in now 😑 The insurance I had was sketch about the amount I owed, I wiped out my savings to pay and it still cancelled.

[@dimitriberozny3729]

In Massachusetts,your registration is automatically suspended!! In Rhode Island,in 30 days,the insurance company will notify the DMV and your driver’s license will automatically be suspended!!

[@DashWithAshSouthCoastMass]

F**k off! 😂 This is awful news. I'm in Massachusetts & I have been struggling financially for 2 years now. I had an at fault accident (fell asleep at the wheel) in October & when my policy renewed, my insurance went from $160/month to $394. I couldn't & can't pay it. I've been a licensed, registered & insured driver since my first car in 2004. Even have the same tags I got for my first car in 2004. I've been driving without insurance for 2 months, I'm so screwed. As this point, I mine as well willingly give my car back to the bank, I can't afford the $720/month between car payment & insurance, anymore. Wtf! Life sucks. Thanks for this information. I work 20 miles from home & have no clue how I can even make it to work without a car. I've had a car for 20 years this August. FML! 😭

[@chrislloyd3096]

if your insurance lapses and you are pulled over your car is towed and and impound fees acrue in addition to paying car insurance plus registration cancellation fee

[@chrislloyd3096]

plus you have to pay your car taxes happened to me trooper nailed me as hard as he could even took my plates

[@ThinkInsurance]

+Chris Lloyd that very true. You could be slammed with thousands in fees. Plus lose your license in some states. In FL your license will be suspended. Some states they don't seem to care as much, more so the states where they have a lot of uninsured motorists.

[@josephguerreroduron2889]

What happened if I got a new insurances because of the price and stop payment the current one I have ?

[@AgentCarlos127]

What about promissory notes written to the insurance company? Would that take care of the fees

[@ThinkInsurance]

+Carlos Torres A promissory note is good but it's up to the company you're insured with if they reinstate your policy. If so then you are good. If it's only paying your previously owed balance and not reinstating then nothing has changed except you don't owe them any more money. In insurance you always pay a month in advance so make sure they aren't canceling the policy but just allowing you to catch up on payments. If you have a fee from the government that is separate and won't likely change unless they say so.

[@Benny-dv7xm]

Friday April 14 2023, It has been two days since I e-mailed him so does this mean he is another agent en-riching themselves like geico doing tactics on me for refusing them to double my rates? But attorney ? from Alleged Philly didn't call back either. This is why their needs to be People based organizations every where like some credit unions use to be to avoid rackets between states and insurance companies.

[@KekeDaPlum]

Hi there! I live in Pa. My registration is up to date. My insurance ended around January and I (stupidly) didn’t get a new coverage/turn my plates in. I lost my job and couldn’t afford it. I didn’t operate the vehicle. Now I am trying to get new insurance. They are all around $590. I was paying $275. I did find an ok quote, but will anything happen from the DMV/Penndot once my new insurance policy is active? Will they still suspend my license due to the lapse? I’m scared ugh

[@ThinkInsurance]

As backed up the state of NY is I wouldn’t expect much would come of it if you get a new policy but I can’t say for sure. It’s they’re call.

[@melaninmonroe1833]

I received a letter from the DMV telling me that my auto insurance cancelled 12/9, but I was still able to pay my insurance under that same policy on 12/15? How was I able to pay the insurance 5 days later if the insurance was cancelled (According to the DMV) on 12/9? I called the insurance company, asked them how the payment was due so soon anyway, if I just paid it on 11/14 previous month. Floating dates with this insurance it seems. The insurance company didn't even mention the payment I made on the 15th of December. They definitely got it, because I paid through my bank account, & there's no refund of that transaction from this insurance company at all. Confused, I had to look back into my bank account transactions to verify if I made a payment at all in December & that's when I realized, I did make a payment on the 15th of December. Could the insurance company or DMV reinstate the insurance due to the error? This is crazy, because the DMV probably already suspended my license over this, & the letter states I have to surrender my plates. Like wtf is going on? Year just started with a headache over my car insurance.

[@ThinkInsurance]

If insurance cancels, you like have a remaining balance of time you were still insured. They’ll continue to try and take the payment if you’re on an auto pay or send you to collections for the remaining time. If it’s cancelled due to non pay, you can sometimes cab make a payment within 2 weeks, which is a typical grace period, to catch up. What I see happen every so often is some companies will allow you to skip a payment if you make changes to your policy but they will collect both months the following month or, sometimes you are behind more than a month in which case they’ll take the amount due but you’ll have another payment almost immediately after. Usually in the normal day you pay your bill.

[@melaninmonroe1833]

@@ThinkInsurance Thanks. I guess that's what the lady was trying to explain. But either way, my car is no longer insured, therefore I have to surrender my plates, License, & Registration. Had the car for nearly 2 years. Now it goes back. Its a learning experience for me. That's for sure. I will know better, as far as the insurance goes, with the next car I end up getting.

[@AadilGhauri]

I had an Insurance with TSLA for my Model y they were expensive so I contacted another company and negotiated the rates and they made an agreement starting from Feb 15th, 2023. I then called TSLA and forget the date from which the new contract will be effective and accidentally cancelled the insurance from Feb 10th, 2023. Now I have a 5 days Lapse, No accidents and violations in between. How can I correct it? I called TSLA but they refused to help. Will DMV fine me for the 5 days lapse? What will be the effect on insurance rates next year?

[@heroknaderi]

Very good vieo also there is Dillo Insurence too. Aso hat is it like if someonetook the lapsed card and edit thedate so it showes current i was curious.

[@memesimone9690]

My credit card declined last month. I had no idea. I just got hit. They took the money off my card after the accident. Now I'm fighting them even though im active now.

[@jonnyjon19]

I have to turn in my plates and i have to wait to April 26 to reinstate my car but i have a question can i pay the penalty

[@TheKshetij]

My insurance company (State Farm) cancelled my policy on 58th day stating some irrelevant reasons. I wanted to know if I can sue them for canceling my policy without any specific reason?

[@ThinkInsurance]

+Kshetij Moitra It would be difficult but I would imagine you can unless they had a good reason for canceling your policy. They do have some loop holes which it sounds like they are using on you. Some companies have a 30-60 day underwriting guideline which if an underwriter decides you're not the type of risk they want they can cancel you. As long as you can find a new insurance before the cancellation you won't show a lapse.

[@alexisdiva9]

I don't know where you live and I know it's 4 years hence but I did some research. Where I live (PA) a carrier has up to 60 days to investigate and underwrite a new policy, during which time they can cancel your policy for basically no reason; however, they can't do it for discriminatory reasons (e.g. occupation, race, age, marital status, etc.). After that time, they can't cancel or refuse to renew unless significant fraud was committed, being convicted of a DWI/DUI, had a license suspended or revoked, the carrier no longer is operating in the state and of course, nonpayment of premiums. The thing to do promptly is try to find out the season and see if there's grounds for appeal, plus look for another carrier - as a last resort there's always the pricey assigned risk plan that states run.

[@BMHyoutube1690]

My payment is overdue on the 22 but I get paid on the 23rd. So it will lapse maybe a day or two. Would that cancel my insurance? This is the first time this happened

[@ThinkInsurance]

They can but it would be the first time I’ve seen it after a day of being late. Typically an insurance company will give you a 2-3week grace period to pay a late payment. In the future you usually can change the payment date or delay a payment if you call 5 days in advance

[@BMHyoutube1690]

@@ThinkInsurance thank you

[@drrodz4968]

I have geico app, you can view insurance on phone, I also get text when the insurance is paid.

[@shawnbutler1304]

i have tried to get tags and title for a new car but every place i go says i have a lapse in insurence .but its for a vehicle that i have never owned or had insured . but i was able to insure the new car and the insurence company didnt say any thing was on my record.

[@narendrakotturi]

I have a question. I have received a letter from my insurance company stating about insurance lapse. What do I need to do to resolve this issue? Will my insurance lapse resolve and get reinstated after I talk to my insurance company?

[@ThinkInsurance]

Call them and see if they will reinstate your policy without a lapse. They might reinstate it with a lapse but still better than nothing.

[@godslove564]

Help please. I forgot to renew my insurance. Now i called them and they are tripling the original renewal amount to reinsure me. What can i do to get them to lower it. Help please.

[@ThinkInsurance]

What company and how long have you had a lapse?

[@godslove564]

@@ThinkInsurance thanks for the quick response. I am with Geico for over 5years. I was suppose to renew at 577$. Now they want me to pay around 1350$ for six months coverage.

[@ThinkInsurance]

When did it lapse? How much of the $1,350 is past few amount? You may just be back paying. I would also ask them if they can equalize it across your future payments.

[@godslove564]

@@ThinkInsurance I didn't owed them. I pay my past months premiums. It ended at the end of the month, i received a renewal email with a 6 months premium of 577$ due by the 7th of oct, date at which my premium was supposed to restart. Sine i forgot to renew they cancely policy. When i call them to be reinsured, they want to reinsure me , but with a premium of 1350 for 6 months insted of 577$ as i was supposed to at first. What can i do to make them accept my initial premium of 577 for 6months

[@ThinkInsurance]

Ok so they are going to have you pay the past due amount plus a fee and maybe a $25 NSF fee as well as, next months payment. That would equate to the $1350 ish amount. That should mean your payments go back to normal. You’re only other legit option is take your current Dec page and call some local independent agents and tell them the story, send them your Dec page and then let them come up with a solution if possible. Or you stay with Geico, pay it and either stay or reshop after you’ve had current insurance again. It matters.

[@ravelbella7330]

Thank you. Very useful.

[@outta-sight3040]

Hi What happens if your insurance lapse And you get hit by a tractor trailer Which has out of states plates They get cited With it being their fault For changing lanes when unsafe to do so Please respond Thank you

[@ThinkInsurance]

If you don’t have insurance you’re not covered for your end. You’ll have to call his insurance and see if they will pay the damages. If not, you’ll have to hire a liability lawyer and sue him or his insurance.

[@drrodz4968]

The general insurance doesn’t cover your in every state.

[@habtamumelese981]

Hey i see the video u make i like it. I got a car accident know and i my insurance run out i give them the expired insurance can they Asus me but know i hove my insurance

[@RealAaronMichael]

Hi there sir! So my Geico cancelled my insurance end of June 2022 after moving back to NY from Oregon and I started working from home so I didn’t re-insure my car until March of this year (stupidly). DMV is telling me to surrender my plates and serve a 254 day suspension for the lapse. Is there ANY WAY around this so I can get my plates re-registered? I do delivery services now full time and can’t afford to not have a car! Let me know if there are ANY options to fix this :(

[@ThinkInsurance]

If the DMV has placed a suspension, you’ll have to talk to them or consult a lawyer to see if there isn’t way to get it re-registered

[@hongceequan1030]

My bank didn’t release the money when the insurance company was trying to get it out of my account and they didn’t tell me

[@THEREALESTATEHUSTLER]

I paid for insurance 6 months in advance and my coverage lapse do to non payment. I suppose to keep with my billing but I never go a statement or a letter for canceling my policy. Not did the insurance report it to DMV. So I had been driving uninsured for about 10 days. Within that 10 day frame ai totaled my $45 truck. My question is could I file a complaint for them not properly notification on late,pay and cancel policy. And could I report that they never notified DMV? Now my gap want pay because I didn't have full coverage. I want to know if I can sue the insurance company as well. I'm in a messed up situation. The accident was no ones fault. Bad weather conditions cause me to hydroplane.

[@ThinkInsurance]

I’m sorry to hear this situation. Looking on the insurances end they will/should have records of them sending cancellation paperwork etc.. you can call and ask when they sent them. If not then maybe you have a slight chance of claiming you weren’t properly informed of the payment or lack of. Legally I believe they can still say you are responsible to make sure it’s paid but in this case you might want to speak with a auto claims lawyer. As far as the accident on paper it counts as an at-fault accident because you didn’t maintain control of the vehicle. Typically a police office will write a ticket for “driving too fast for conditions”. But that doesn’t have any bearing on the cancelled policy. Do let us know if you get anywhere with this. I’m interested in knowing how it turns out if you find a soliton.

[@boomvas1754]

My insurance lapsed from 2001-2007 because I was broke and young Im responsible no and I always have insurance

[@ThinkInsurance]

Great to hear! That’s how I first learned. When I was a teen I had a 1 day lapse and it cost me so much $$$... I swore never again.

[@boomvas1754]

@@ThinkInsurance that's good 👍 Now that I understand how important it is I always carry uninsured and under insured motorists

[@bentleysw]

what do you do if your car was repossessed.

[@ThinkInsurance]

If they took it back and you’re not legally responsible for it then it wouldn’t make sense to insure it. 🤷🏽‍♂️.

[@mr.r9390]

Hey sir i just got my license suspended indefinitely, if I did get the mail I must have not looked at it. What happened was i didn't drive my pickup truck for like 3 months just sat there in my drive because it needed work and we used my wifes car. I didn't pay the insurance like an idiot because i thought the insurance would just be canceled and then after fixing my pick up i put insurance on it again with the same company in July and today i recieve a letter saying my drivers license is suspended indefinitely it sucks

[@ThinkInsurance]

That doesn’t make sense. Insurance companies don’t have the ability to suspend your license. You should called your dmv/sos and find out why your license is suspended. It might not be the reason you’re thinking. If the state previously required you to carry an SR22 and you cancel your insurance then it would.

[@peskylogicchillinsky6007Futube]

This seems really messed up. What crappy thing to do. Suspended license? Lol what a joke our government is!

[@jason200912]

Most cops don't care unless they hate you

[@mroni1370]

I did not renew car registration n auto insurance for 3 years just because I was out of country. What should I do to back on wheel in NJ

[@mroni1370]

I’m back on wheel. No need to be panic. I just paid for car registration n got insurance. Everything is normal in NJ.

[@shroomssadow4981]

So I called Geico and asked them to end my coverage on a specific day. They ended up ending it on the day I called. After I got a $150 fine in the mail I called and they fixed the coverage dates. I only have 15 days to solve it before they suspend my license. What if Geico doesn’t inform the MVA in time? I’m in MD

[@James-jt6fn]

Hey what happened next

[@shroomssadow4981]

@@James-jt6fn didn’t think anyone cared. Geico basically checks in with the MVA and they resolve it themselves once the coverage dates are cleared up. No fine or anything court appearance had to be made. Once you fix the dates, they get off your back.

[@uptownbully7992]

Can’t you just get on your family or friends policy car insurance to continue using the car?

[@ThinkInsurance]

In order to go on someone else’s policy you need to live in the same household. Also, if you’re the registered owner of your own car, you are normally required to be the primary policy holder not under someone else’s.

[@Himfromduval]

I I was freaking out thinking I gotta pay double to get it reinstated but no it’s 207 I feel like they got my information wrong on purpose cause when I tried to pay the insurance the day before it was due I couldn’t and it was because they put my birthday in wrong so should I not be worried or just get another insurance company cuz how you put my birthday in wrong when u had my id the whole time

[@KingsRight]

if you sell car, turn in plate and are leaving the country for at least a few months or as much as a couple years... should you cancel or maintain it to avoid lapse? Allstate tells me they refuse returning customers who are lapsed for over 30 days.

[@ThinkInsurance]

If you don’t need insurance for a few years it would make sense to cancel it. Especially if you don’t have a car you would have to get a non owners policy. Personally I would cancel it and just pay the extra when I come back. Once you go 6 months again you can get pretty much the same rates you would if you were to shop now.

[@gatorslife22]

My insurance was due two days ago. I dont have $262 to pay it... cc are maxed. Is my license suspended now???

[@ThinkInsurance]

Your insurance will likely give you a few weeks to catch up but if you can’t then they will notify the state. Even then you might not lose your license until you’re pulled over. Each state handles it differently. If you know you can’t pay it and need to stop driving you should turn your tags into the DMV which will stop them from taking your license. Unless you drive illegally

[@gatorslife22]

@@ThinkInsurance I will definitely be able to pay it on Wednesday. But that will be a total of like 4 days uninsured 😨

[@Idkjustyet]

I have a lapse for 1 day. I’m in Nevada what do I do? 😭

[@ThinkInsurance]

Call the insurance company and see if they will reinstate the policy.

[@luisharo1972]

My insurane was recinded after an accident claim. Because of not including excluded drivers who dont have a license on my policy. I dont remember to much about what i signed and what they asked me when i got policy and i would have put that information on policy if required but they say i didnt so now im stuck and dont know what to do. Can someone pleas help me?

[@ThinkInsurance]

Without knowing what state you are in and who you were insured with I’ll say: If they cancelled you because of undisclosed drivers when they asked if there are any other non drivers in the household then you’re better off finding somewhere else to go. You could ask the agent to fight it for you but with having an accident if someone else was driving your car that was in the house and not excluded then yea you’re not going to get any help. Maybe they will let you sign the exclusion form now and reinstate your policy. If not you’ll need to check other places

[@dewaynabooker9702]

What if you were in an accident and found out your insurance lapse like you said about the credit card and your car was total but you have gap oh it’s your fault your car I think it’s airline or something to a median wall

[@cheelee103]

So what happen if you didn't pay for auto insurance for 2 months. But you got new insurance and cancel the old one before they cancel it. Does it still count as lapse?

[@ThinkInsurance]

+chee lee Yes. Unless you were paid up until then or if they don't report it. All insurances companies report to the state and most companies share that information to what is called an SAQ report so other major insurance companies can look that up.

[@Lavette2010]

Mark Flockhart I’m in this situation now. So will I have to pay a lapse fee if I start a new policy? How do I not end up with a lapse?

[@ThinkInsurance]

Depending on the company you’re with and the time frame of your lapse they may allow you to re-instate your policy. Some companies require a re-instatement with a lapse which is more expensive but better than having one. Once you go 6 months with your current insurance again you can re-shop it and likely get a better price

[@Lavette2010]

Mark Flockhart thanks so much

[@eileencampos2077]

I have a question?

[@lahms111]

Please help. This is in NY. My insurance lapsed without me knowing, and my registration and license got suspended. I immediately paid a termination fee of $50, got a new insurance as well. Do i have to turn in my plates? The suspension is for 99 days apparently, so I will obviously not be driving. But want to know what i should do.

[@ThinkInsurance]

So technically if your insurance is ok with the suspension then your good. It’s very likely they won’t check it. It’s technically not a law to have a license to have insurance but most companies want a valid license to have the car insured

[@ecenindayisi]

I’m the same situation I surrendered license plates can I register again after suspension

[@Lanainvestor]

i pay $ 260 for months for 1 car Geico

[@ThinkInsurance]

The question is, do you have the right coverages to protect you vs your income etc...?

[@jman21611]

I was supposed to pay my insurance last month but lost my job and couldn’t make the payment so it was added to this months payment but I just started my new job 3 days ago and there’s no way I’m getting a check yet so I will once again not be able to pay it. I will be in a lapse for about a week until i get paid and can setup a new policy with a new company but in the state of Nebraska I’m not an adult until 19 and I’m only 18 could this help me out at all or am I still going to have to face the fact I’m probably gonna be paying extra even if I’m setup with a new company because of the lapse?

[@ThinkInsurance]

+jman21611 Unless you’re still on your parents insurance they’ll count it as a lapse. The first company will likely take you to collections if you don’t pay the remaining balance. It won’t effect your new insurance if you still owe the second one but the lapse may hurt you. At least for 6 months. Sounds like you tried doing what you could to keep it going. I applaud you for that instead of just giving up first thing. It might be tough now but with this attitude you’ll go far in general