More than 15% of all drivers are uninsured, according to a report by the Insurance Research Council. While more than half of U.S. states have begun to develop systems that identify uninsured drivers, the consequences of not having insurance can be expensive for everyone.
Uninsured drivers increase the rates for all drivers, and uninsured drivers pay higher rates than drivers who maintain continuous coverage. Letting your insurance lapse can increase your rates and cost you hundreds or even thousands in fees. Learn more about the penalties for a lapse in car insurance in each state.
- A 30-day lapse will hike your car insurance rate by an average of 25%, or about $474 a year.
- A 45-day lapse results in a 40% increase, about $760 more a year.
- Some insurance companies provide a short grace period, meaning you won’t lose coverage if your payment is late.
- Look for companies that offer cheap car insurance after a lapse, and compare quotes from multiple companies when you shop.
What happens if your car insurance lapses?
If you let your car insurance lapse, your vehicle registration or driver’s license could be suspended. You might also owe hefty fines, fees or penalties, and pay higher premiums once your coverage is reinstated.
You could face even stiffer penalties if caught driving while your car insurance lapses. And if you’re involved in an accident, you’ll have to cover the entire cost of damages, injuries and other expenses you’re liable for.
Penalties by state for car insurance lapses
In most states, a lapse in car insurance means your driver’s license or registration will be suspended, and you’ll have to pay a penalty to reinstate it. The cost ranges from as little as $10 in Wisconsin to $1,000 or more in states like Kansas, Nevada and Mississippi.
Some states, like Colorado, also assess points on your license, and the court may require you to perform community service. You could even risk jail time in Connecticut, Kansas and Idaho.
See the penalty for lapsed car insurance in every state in the table below.
| State | Penalty for lapsed car insurance |
|---|---|
| Alabama | $200 penalty for license reinstatement for first suspension; $400 for second and subsequent suspensions |
| Alaska | Reinstatement fee of up to $500, possible vehicle impoundment |
| Arizona | $50 penalty for license reinstatement |
| Arkansas | $100 penalty for license reinstatement |
| California | $14 penalty for registration reinstatement |
| Colorado | Four points on your license; $500 fine for first suspension; $1,000 fine for subsequent suspensions; up to 40 hours of community service |
| Connecticut | Up to $500 penalty; up to three months in prison; $175 fee for license reinstatement |
| Delaware | $100 for up to 30 days without insurance, then $5 per day; $50 reinstatement penalty; $1,500 fine for first offense if caught driving without insurance |
| Florida | Reinstatement fee of up to $500 |
| Georgia | $25 fine, plus up to $160 in penalties if the fine is not paid within 30 days |
| Hawaii | $500 penalty for the first offense; $1,500 for subsequent offenses |
| Idaho | $75 penalty for first offense; up to $1,000 and six months in jail for subsequent offenses |
| Illinois | $100 fee for license reinstatement; fine of $500 to $1,000 if caught driving uninsured |
| Indiana | $250 penalty for license reinstatement (first offense); $500 for second suspension; $1,000 for third and subsequent suspensions |
| Iowa | $20 reinstatement fee and $10 duplicate license fee |
| Kansas | Penalty of $300 to $1,000 and/or up to six months in jail ($800 to $2,500 for subsequent offense within three years); $100 reinstatement fee |
| Kentucky | Fine of $500 to $1,000, up to 90 days in jail, or both |
| Louisiana | No penalty if reinstated during the grace period; otherwise, a fine of not more than $500 |
| Maine | Fine of $100 to $500 |
| Maryland | $200 for the first 30 days, $7 for each day thereafter, plus $25 to reinstate registration |
| Massachusetts | $500 fine |
| Michigan | Up to $500 in fines, up to one year of jail time or both |
| Minnesota | Fine not less than $200 |
| Mississippi | $1,000 penalty and loss of driving privileges for one year unless proof of insurance is presented |
| Missouri | $20 reinstatement fee for first suspension; $200 for second suspension; $400 for third and subsequent suspensions |
| Montana | $250 to $500 penalty for a no-insurance citation, plus up to 10 days in jail for the first offense |
| Nebraska | $50 reinstatement fee |
| Nevada | For the first offense: $250 fee plus a fine of $250 to $1,000, depending on the length of the lapse. The fee increases to $500 for a second offense and $750 for a third offense |
| New Hampshire | Not applicable |
| New Jersey | $100 restoration fee |
| New Mexico | $30 reinstatement fee |
| New York | $8 to $12 per day civil penalty, depending on the length of the lapse |
| North Carolina | $50 for the first lapse; $100 for the second; $150 for subsequent lapses; plus restoration fee of $50 |
| North Dakota | $50 reinstatement fee |
| Ohio | Reinstatement fee of $40 for first offense, $300 for second offense, and $600 for third and subsequent offenses, plus a $10 service fee |
| Oklahoma | $250 penalty and up to 30 days in prison for driving without insurance |
| Oregon | Fine of at least $130 and up to $1,000 |
| Pennsylvania | Suspended registration or a $500 civil penalty for driving without insurance, plus a restoration fee |
| Rhode Island | $500 fine |
| South Carolina | Up to $400 in reinstatement fees |
| South Dakota | $100 fine and up to 30 days in jail |
| Tennessee | $25 if not corrected in 30 days, then $100 with registration suspension |
| Texas | Fine of $175-$350; $1,000 for a subsequent offense |
| Utah | $400 for a first offense and $1,000 for a second and subsequent offense |
| Vermont | Up to $500 |
| Virginia | $600 statutory fee, plus possible reinstatement fee |
| Washington state | Fine of $550 or more |
| Washington, D.C. | $150 for a lapse of 1 to 30 days. After 30 days, a fine of $150 and $7 a day, up to a maximum of $2,500, plus a vehicle reinstatement fee of $98 |
| West Virginia | License reinstatement fee of $50; possible registration reinstatement fee of $100 |
| Wisconsin | $10 fine for drivers who fail to show proof of insurance at the time of the stop/accident; $500 fine for using an uninsured vehicle |
| Wyoming | 6 months in jail and/or a $500 fine; subsequent violation requires rescinding of registration and license plates |
Is there a grace period for car insurance?
There is no required grace period for car insurance. However, most insurers will accept a late payment. Depending on the insurer, this period could be anywhere from a week to 30 days. Your coverage may remain in force if they receive your payment during the grace period. If so, a one-day lapse in car insurance might not result in your policy being terminated.
However, sending in your payment after the due date is risky – grace period or not – because you may incur a late fee. Avoid the risk of losing coverage by always paying on time.
How much will my rate increase if my insurance lapses?
A weeklong lapse in coverage increases your insurance rates by an average of 23% or about $430 a year. A 30-day lapse will raise your car insurance rate by 25%, or about $474 a year. A 45-day lapse gets you a 40% increase, about $760 more a year,
Insurance companies consider lapsed coverage a risk factor, says Clayton Hasbrook, a lawyer in Oklahoma City who has experience representing people injured in traffic accidents. Your driving history and the duration of the lapse can also affect your rates.
“This serves as a deterrent for drivers to maintain continuous insurance coverage,” Hasbrook says.
If your lapse in coverage is longer than 30 days, you could be charged more because insurers consider going without coverage a risky decision. Statistical models show drivers with coverage lapses are more likely to file claims, costing carriers more.
However, depending on your state, the insurance provider may be prevented from increasing your rates if the lapse was due to hospitalization, military service overseas or job loss.
In the table below, see how much a 45-day insurance lapse will increase your insurance in each state.
| State | Annual rate | Rate after a 45-day lapse | % increase | $ increase |
|---|---|---|---|---|
| Alaska | $1,676 | $2,123 | 27% | $446 |
| Alabama | $1,860 | $2,340 | 26% | $480 |
| Arkansas | $1,957 | $2,762 | 41% | $805 |
| Arizona | $1,812 | $2,534 | 40% | $722 |
| Colorado | $2,337 | $3,177 | 36% | $840 |
| Connecticut | $1,725 | $2,733 | 58% | $1,008 |
| Delaware | $2,063 | $2,552 | 24% | $489 |
| Florida | $2,694 | $4,142 | 54% | $1,448 |
| Georgia | $1,970 | $2,759 | 40% | $790 |
| Hawaii | $1,517 | $2,236 | 47% | $720 |
| Iowa | $1,630 | $2,331 | 43% | $700 |
| Idaho | $1,428 | $1,936 | 36% | $509 |
| Illinois | $1,532 | $2,353 | 54% | $821 |
| Indiana | $1,515 | $2,119 | 40% | $605 |
| Kansas | $1,900 | $2,482 | 31% | $582 |
| Kentucky | $2,228 | $3,092 | 39% | $864 |
| Louisiana | $2,883 | $3,987 | 38% | $1,104 |
| Massachusetts | $1,726 | $2,171 | 26% | $445 |
| Maryland | $1,746 | $2,890 | 66% | $1,144 |
| Maine | $1,175 | $1,426 | 21% | $252 |
| Michigan | $2,352 | $3,693 | 57% | $1,341 |
| Minnesota | $1,911 | $2,875 | 50% | $964 |
| Missouri | $1,982 | $2,716 | 37% | $734 |
| Mississippi | $2,008 | $2,598 | 29% | $590 |
| Montana | $2,193 | $2,695 | 23% | $501 |
| North Carolina | $1,741 | $2,649 | 52% | $908 |
| North Dakota | $1,665 | $2,062 | 24% | $397 |
| Nebraska | $1,902 | $2,312 | 22% | $410 |
| New Hampshire | $1,265 | $1,640 | 30% | $374 |
| New Jersey | $1,902 | $3,030 | 59% | $1,128 |
| New Mexico | $2,049 | $2,699 | 32% | $650 |
| Nevada | $2,060 | $2,521 | 22% | $461 |
| New York | $1,870 | $2,030 | 9% | $160 |
| Ohio | $1,417 | $1,874 | 32% | $457 |
| Oklahoma | $2,138 | $2,699 | 26% | $562 |
| Oregon | $1,678 | $2,407 | 43% | $729 |
| Pennsylvania | $1,872 | $2,410 | 29% | $538 |
| Rhode Island | $2,061 | $2,691 | 31% | $630 |
| South Carolina | $2,009 | $2,953 | 47% | $944 |
| South Dakota | $2,280 | $2,756 | 21% | $476 |
| Tennessee | $1,677 | $2,126 | 27% | $449 |
| Texas | $2,043 | $2,950 | 44% | $906 |
| Utah | $1,825 | $2,558 | 40% | $732 |
| Virginia | $1,469 | $2,178 | 48% | $709 |
| Vermont | $1,319 | $1,587 | 20% | $268 |
| Washington state | $1,608 | $2,099 | 31% | $491 |
| Washington, D.C. | $2,157 | $3,141 | 46% | $984 |
| Wisconsin | $1,664 | $2,336 | 40% | $673 |
| West Virginia | $2,005 | $2,803 | 40% | $799 |
| Wyoming | $1,758 | $2,334 | 33% | $576 |
Affordable insurance companies after a coverage lapse
If you experience a lapse in car insurance coverage, shopping for a new policy can be tricky, and your premiums will likely be higher. However, some car insurance companies may offer more affordable rates even if you’ve had a lapse.
According to our data, the cheapest car insurance companies for drivers with risk factors like a lapse in coverage include Farmers, GEICO, Progressive and USAA. However, keep in mind that USAA only offers insurance to military community members and their families.
You might find a lower rate with another company. The best way to find cheap car insurance after a coverage lapse is to compare quotes from several insurers.
The table below shows how much insurance rates increase after a 45-day coverage lapse from major carriers.
| Company | Annual rate | Rate after a 45-day lapse | % increase | $ increase |
|---|---|---|---|---|
| Allstate | $2,509 | $4,209 | 68% | $1,700 |
| Farmers | $2,387 | $2,962 | 24% | $575 |
| GEICO | $1,763 | $2,196 | 25% | $433 |
| Nationwide | $1,548 | $2,167 | 40% | $619 |
| Progressive | $1,998 | $2,760 | 38% | $763 |
| Travelers | $1,606 | $2,803 | 75% | $1,197 |
| USAA* | $1,381 | $1,548 | 12% | $166 |
*USAA is only available to military community members and their families.
How do you buy car insurance after an insurance lapse?
Buying insurance immediately after an insurance lapse is wise. The penalties are often worse (and the premiums are higher) the longer you’ve been uninsured.
Begin by asking your old insurance carrier if they’ll reinstate your policy. Some insurance companies may reinstate your policy if the lapse was short.
If that’s not an option, your next step is shopping around and comparing car insurance rates from several providers. Companies that offer policies for high-risk drivers may be more likely to insure you after a lapse, but these typically come with high premiums.
If you’re in the military and expect to be deployed, which can affect your ability to pay your car insurance premium, you could consider a company that caters to service members, such as USAA. Or, if you no longer have a car, you can opt for a non-owner policy. That will still provide liability coverage, even if you’re driving a vehicle that doesn’t belong to you. The average annual rate for a non-owner policy is $325.
In some states, you might be required to file an SR-22 certificate of financial responsibility with the Department of Motor Vehicles when you reinstate your license or registration, pay any necessary penalties, and purchase insurance. Not all insurers will offer coverage to someone who must file an SR-22.
How can I avoid a lapse in insurance coverage?
Now that you’ve seen how costly it can be to let your insurance lapse, you can take steps to avoid it. Make it easier on yourself by taking the following steps.
- Creating payment reminders: Put a note on your calendar or set an alarm on your phone to help you remember to pay your premiums on time.
- Paying your premium in full: Autopay removes the worry about remembering to pay your premium each month.
- Setting up autopay: If you choose to pay in installments, automatically arranging for the payment to come out of your checking account can prevent a future payment lapse.
FAQs
What if I wasn’t driving during the lapse? Do I still face penalties?
Yes, depending on your state, you can still face penalties even if you weren’t driving. However, some states allow you to file a signed affidavit stating that your vehicle was not operated during the lapse. That may help you avoid certain penalties, such as the suspension of your license or car registration, provided you reinstate coverage within a specific time frame.
Can I keep my license plates and car registration during an insurance lapse?
It depends on the state you live in. If you let your car insurance lapse, you may have to turn in your plates, registration and/or your driver’s license. If that’s the case, you’ll typically need to pay a fine to get them back once the suspension ends. In other cases, you may be able to pay a fine instead of surrendering your plates or registration.
What if my insurer refuses to renew my policy after a lapse?
Your insurer may decline to cover you after an insurance lapse. After all, that changes your risk profile, and some companies may not wish to take on additional risk. If that happens to you, start shopping for a new insurance company immediately and don’t drive anywhere until you’re covered again.
Resources & Methodology
Sources
- American Association of Motor Vehicle Administrators. “SR22/26.” Accessed May 2025.
- Insurance Research Council. “Uninsured and underinsured motorists: 2017-2023.” Accessed May 2025.
- Insurance Information Institute. “Facts + statistics: Uninsured motorists.” Accessed May 2025.
- Insurance Information Institute. “What if I can’t find auto coverage?” Accessed May 2025.
- National Association of Insurance Commissioners. “Why are my insurance premiums increasing?” Accessed May 2025.
- National Association of Insurance Commissioners. “A consumer’s guide to auto insurance.” Accessed May 2025.
Methodology
CarInsurance.com editors collected rates from Quadrant Information Services for 40-year-old males and females driving a Honda Accord LX with good insurance scores and no violations on record for a full coverage insurance policy with limits of 100/300/100 and $500 comprehensive and collision deductibles. We analyzed 53,409,632 records, 34,588 ZIP codes and 170 insurance companies nationwide.
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