Having car insurance is essential for anyone who drives. Not only does it protect you and your car, but it is also legally required in most states. If you stop paying your premiums or let your coverage lapse, there can be serious consequences.
It can result in fines, higher premiums and even the loss of your driver’s license or registration. In most states, you will be charged fines and penalties if caught driving without car insurance. Learn more about these penalties and how much your insurance rates will go up after a lapse in coverage before you decide to drive without insurance.
What happens if your car insurance lapses?
If your car insurance lapses for any reason, the state may take away your driving privileges and fine you to reinstate them, even if you weren’t caught driving. That’s because if you have a vehicle registered under your name, the state assumes you’re driving it. And in every state but New Hampshire, driving without minimum liability insurance is against the law.
One out of every eight drivers doesn’t carry insurance, according to the Insurance Research Council.
Uninsured drivers have become such a costly problem — states increasingly use electronic reporting systems to find out directly from insurers when a vehicle owner is past due on their bill. If that happens, you may not be charged with driving while uninsured, which can carry steep penalties. But in nearly every state, you will have your registration, driver’s license or both, revoked and then be charged a fine.
The DMV fees listed below are only for those portions of the costs and do not include criminal fines, court fees or other costs associated with driving without insurance.
Below are the fees the DMV charges when a registered vehicle owner’s insurance has lapsed.
| State | Dependent on whether an accident occurred |
|---|---|
| Alabama | $200 for the first suspension, $400 for second and subsequent suspensions |
| Alaska | License reinstatement fee of $100 for one action and $250 for two actions for non-DUI related offense |
| Arizona | License reinstatement fee of $25 for drivers age 39 and younger |
| Arkansas | $150 reinstatement fee |
| California | License reinstatement fee of $14 |
| Colorado | Reinstatement fee of $95 |
| Connecticut | Reinstatement fee of $175 |
| Delaware | A fee of $50 must be paid to reinstate a suspended license. A $200 fee is charged to reinstate a revoked license |
| District of Columbia | $150 fee for any insurance lapse from 1-30 days, and $7 per day for each day after 30, up to a $2,500 maximum |
| Florida | Reinstatement fee of up to $500 |
| Georgia | $25 for any lapse of coverage while the vehicle is actively registered, Up to $160 in addition to the $25 fine if the lapse of coverage fine is not paid within 30 days |
| Hawaii | $500 to $5,000 |
| Idaho | Owners will need to provide proof of insurance and pay a fee of $75 |
| Illinois | Reinstatement fee of $100 |
| Indiana | $500 for the second offense |
| Iowa | Dependent on if an accident occurred |
| Kansas | Fine of not less than $300 nor more than $1,000 |
| Kentucky | Registration reinstatement fee of $40 |
| Louisiana | Fine of not more than $500 |
| Maine | Fine of not less than $100 and not more than $500 |
| Maryland | $150 for the first 30 days, $7 for each day thereafter and a registration restoration fee of up to $25 |
| Massachusetts | $100 fee to reinstate your driver’s license, right to operate, and/or vehicle registration |
| Michigan | The reinstatement fee is $125. Depending on your situation, you may owe multiple reinstatement fees |
| Minnesota | License and a registration reinstatement fee of $30 |
| Mississippi | $1,000 for failing to maintain insurance coverage and a suspension of driving privileges for one year |
| Missouri | License reinstatement fee of $20 after the first suspension, $200 after the second suspension and $400 after the third suspension |
| Montana | The penalty for a no-insurance citation is between $250 and $500 or up to 10 days in jail for a first offense |
| Nebraska | Reinstatement fee of $50 |
| Nevada | Statutory $300 fees |
| New Hampshire | Insurance not typically required |
| New Jersey | Restoration fee of $100 |
| New Mexico | Registration reinstatement fee of $30 |
| New York | If your insurance lapse is 25 days, you may pay a civil penalty of $200 ($8 per day for 25 days) |
| North Carolina | Civil penalty of $50 for the first lapse, $100 for the second lapse. If you have more than two lapses, your civil penalty will be $150 |
| North Dakota | Reinstatement fee of $50 |
| Ohio | At least $150 reinstatement fees |
| Oklahoma | Statutory fees of $300 |
| Oregon | License and a registration reinstatement fee of $75 |
| Pennsylvania | $94 restoration fee to restore your driver’s license. A minimum of $300 fine for driving uninsured |
| Rhode Island | Registration reinstatement fees of $252.50 |
| South Carolina | $400 to reinstate your driving and registration privileges if you’re unable to verify having insurance coverage |
| South Dakota | 30 days imprisonment in county jail or a $100 fine or both |
| Tennessee | Fine of not more than $300 |
| Texas | $260 (first offense), $470 (subsequent offenses) |
| Utah | $400 for a first offense and $1,000 for a second and subsequent offense |
| Vermont | Up to $500 |
| Virginia | $600 statutory fee |
| Washington | Fine of $550 or more |
| West Virginia | License reinstatement fee of $50 |
| 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 | $250 to $750 for a first offense and $500 to $1,500 for subsequent offenses |
Can I keep my license plates and car registration during an insurance lapse?
To avoid these penalties, always turn in your license plates and cancel your registration if you plan to let your car insurance lapse. Contact your insurer, who will likely work to keep good customers. Insurers are supposed to give you a 30-day advance notice before canceling your policy.
“If you miss a payment, the important thing to do is get in contact with them right away,” says Bob Passmore, executive vice president and chief legal officer of the Property Casualty Insurance Association of America. “So, you’ll get a lot of opportunities to make it right.”
Is there a grace period for car insurance?
Most car insurance companies offer a grace period for missed insurance payments, so it should be fine if you’re a few days late. However, you should pay the premiums as soon as possible, as the grace period can vary by insurer.
How much will my rate go up if I have an insurance lapse?
A weeklong lapse in coverage increases your insurance rates by 11% or about $226 a year. A 30-day lapse will hike your car insurance rate by an average of 14%, or about $269 a year. A 45-day lapse gets you a 22% increase, about $439 more a year, based on a 2022 data analysis by CarInsurance.com.
If you still want to suspend coverage, remember that even if you follow the law and submit your plates, you may still be charged more for insurance after you’ve lapsed more than 30 days. Insurers say their statistical models show that drivers without steady, uninterrupted insurance coverage tend to file more claims, costing the insurance company more.
Some insurance companies won’t even take customers who can’t show six months of prior coverage, forcing drivers to shop from high-risk providers for as much as double the price.
“If you’re in that situation, there are a lot of companies that specialize in high-risk drivers,” says Passmore. “Shop around. They might only charge more for six months.
That said, some states don’t allow insurers to charge more if a lapse was due to overseas military service, hospitalization or job loss.
Here is how much more you will pay for car insurance in 2022, on average, if your insurance lapses for 45 days:
| State | Average rate | After 45-day lapse | Increase | Increase |
|---|---|---|---|---|
| Alabama | $1,580 | $1,939 | 23% | $359 |
| Alaska | $1,286 | $1,595 | 24% | $309 |
| Arizona | $1,719 | $2,251 | 31% | $531 |
| Arkansas | $1,652 | $2,109 | 28% | $456 |
| California | $2,207 | $2,207 | 0% | $0 |
| Colorado | $2,125 | $2,651 | 25% | $526 |
| Connecticut | $1,529 | $2,236 | 46% | $708 |
| Washington, D.C. | $1,909 | $2,260 | 18% | $351 |
| Delaware | $1,791 | $2,143 | 20% | $352 |
| Florida | $2,981 | $3,934 | 32% | $953 |
| Georgia | $1,710 | $2,166 | 27% | $455 |
| Hawaii | $1,309 | $1,609 | 23% | $300 |
| Idaho | $1,082 | $1,311 | 21% | $229 |
| Illinois | $1,559 | $2,001 | 28% | $441 |
| Indiana | $1,363 | $1,724 | 27% | $361 |
| Iowa | $1,241 | $1,600 | 29% | $359 |
| Kansas | $1,557 | $1,822 | 17% | $265 |
| Kentucky | $2,086 | $2,619 | 26% | $532 |
| Louisiana | $3,126 | $3,387 | 8% | $261 |
| Maine | $1,068 | $1,312 | 23% | $243 |
| Maryland | $2,172 | $2,770 | 28% | $599 |
| Massachusetts | $1,776 | $2,145 | 21% | $370 |
| Michigan | $3,915 | $4,985 | 27% | $1,070 |
| Minnesota | $1,768 | $2,172 | 23% | $405 |
| Mississippi | $1,535 | $1,829 | 19% | $294 |
| Missouri | $2,669 | $3,463 | 30% | $795 |
| Montana | $1,709 | $2,117 | 24% | $408 |
| Nebraska | $1,926 | $2,066 | 7% | $140 |
| Nevada | $2,427 | $2,980 | 23% | $553 |
| New Hampshire | $1,023 | $1,215 | 19% | $191 |
| New Jersey | $2,232 | $3,223 | 44% | $991 |
| New Mexico | $1,657 | $2,035 | 23% | $379 |
| New York | $1,822 | $1,897 | 4% | $75 |
| North Carolina | $1,442 | $1,699 | 18% | $257 |
| North Dakota | $1,357 | $1,560 | 15% | $202 |
| Ohio | $1,136 | $1,353 | 19% | $217 |
| Oklahoma | $1,968 | $2,453 | 25% | $484 |
| Oregon | $1,484 | $1,974 | 33% | $490 |
| Pennsylvania | $1,508 | $1,820 | 21% | $311 |
| Rhode Island | $1,923 | $2,377 | 24% | $454 |
| South Carolina | $1,804 | $2,301 | 28% | $497 |
| South Dakota | $1,585 | $1,845 | 16% | $260 |
| Tennessee | $1,360 | $1,649 | 21% | $290 |
| Texas | $2,036 | $2,716 | 33% | $680 |
| Utah | $1,629 | $2,025 | 24% | $397 |
| Vermont | $1,195 | $1,360 | 14% | $165 |
| Virginia | $1,319 | $1,856 | 41% | $536 |
| Washington | $1,500 | $1,734 | 16% | $234 |
| West Virginia | $1,474 | $1,671 | 13% | $196 |
| Wisconsin | $1,818 | $2,225 | 22% | $407 |
| Wyoming | $1,880 | $2,141 | 14% | $261 |
How do you buy car insurance after an insurance lapse?
Despite the challenges of buying car insurance after an interruption in coverage, it’s still wise to research rates. Each insurance company assesses risk differently, so even if you have a lapsed policy, you can still find a lower rate by doing a car insurance comparison. For instance, some insurers specialize in high-risk driver policies so that you may get a more affordable price from one of those carriers.
If you are changing your driving situation – you will still be driving frequently but won’t have a car – consider getting a non-owner car insurance policy to avoid a lapse in coverage.
Non-owner car insurance is often used by high-risk drivers who must buy a liability policy to keep a driver’s license. But it is also used by drivers who don’t own cars and rent frequently or are trying to keep continuous coverage.
A non-owner policy will generally cost much less than an owner’s policy. The average cost of a non-owner policy is $380, according to a 2022 CarInsurance.com data study. The low rate is because the insurance company’s risk is lower than that of a car owner who drives daily.
The premium amount is, however, dependent upon standard rating factors, such as your driving record and where you live so you could pay much more than that.
Resources & Methodology
Sources:
- Kelly Blue Book. “Penalties for Driving Without Car Insurance by State.” Accessed February 2024.
- Progressive. “What happens if my car insurance lapses?” Accessed February 2024.
- Insurance Research Council. “One in Eight Drivers Uninsured.” Accessed February 2024.
Methodology
CarInsurance.com commissioned Quadrant Information Services in 2022 to field rates for drivers nationwide after 45 days of lapse in insurance coverage for a full coverage policy with limits of 100/300/100. The rates are based on the profile of a 40-year-old single male driving a 2021 Honda LX.
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Laura Longero
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Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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