What
are the consequences for a lapse in car insurance coverage?
Depending on where you live, the consequences can range from fees (due to making a late payment) all the way to jail time (if you’re caught driving without insurance).
Life-altering accident costs: The reason it’s important to resolve a lapse in coverage immediately is that, by definition, you aren’t covered by car insurance. Not having car insurance—especially liability coverage, which is required in most states—exposes you to numerous risks including being personally liable for any damages you may cause while operating your vehicle during this time.
Penalties: If you’re caught driving without insurance in states like South Carolina, penalties can be severe, including:
Your license being suspended
Your license plates being seized
Jail time
Fines
Rate increases: Once you restart your policy, your premium may be higher depending on how long you go without coverage. If you miss a payment by even one day, your insurer may charge a flat late fee due to the lapse in coverage following your grace period.
Additionally, if your insurance does lapse, you’ll likely be considered a high-risk driver and have a more expensive premium once your insurance is restarted. As a high-risk driver, many states will also require you to get an SR-22 to prove that you’re insured.