Penalties for Nonpayment and Driving Uninsured

It’s critical to be aware of the consequences of letting your due dates slide by. The majority of people also don’t know what exactly may happen if they chose to drive uninsured besides risking the inability to pay for an accident-related lawsuit. Read on to inform yourself.

Cancellation for Nonpayment of Premium

If your car insurance has been cancelled for nonpayment of premium, you are subject to:

  • An insurance lapse.
    • Driving without the minimum coverage will stain your driving record and lead to license suspension, fines, or worse.
    • If you get into an accident without insurance, you can face financial devastation.
  • Increased premiums in the future.
  • Being labeled a “high-risk driver.”

Note that you don’t have to be pulled over for the Department of Motor Vehicles (DMV) to find out about a lapse in insurance. Car insurance companies typically notify the state DMV when they cancel a policy due to nonpayment.

Consequences for driving without current auto insurance vary, but you’re typically at risk of the following:

  • Fines.
    • Example: New York charges $8 a day for the first 30 days you go without car insurance. It goes up to $10 a day for 31 to 60 days late and $12 a day for 61 to 90 days late.
  • Driver’s license suspension.
  • Registration suspension.
  • SR-22 insurance filing requirement.
  • Jail time.
    • If you were involved in an accident while uninsured, you are subject to arrest.

If you have any questions concerning your current insurance policy or want to get a quote, get in touch with your UniAmerica Insurance agent today or give us a call at 1-310-835-3373.

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