Lapse in car insurance coverage in New York.

Reader Question:

I have insurance on my car in New York, but right now I’m not really using it. What will happen if I cancel the insurance temporarily?

Mel

Great question, Mel.

In New York, you’re required to have insurance at all times, whether you’re using your car or not. In some states, you can get by without having insurance on your if you’re never pulled over or get an accident, because the state doesn’t know you’re uninsured until you get into a situation like that and fail to provide them proof of it. In New York, though, the insurance companies are required to keep up a communication with the Department of Motor Vehicles, so if you cancel your insurance, the state will know.

If you cancel your insurance for any reason, even to just change companies, this can cause a ‘lapse’ in your insurance coverage, which basically puts you at risk for having your registration or license suspended or revoked. A lapse can be caused when you change insurance companies, when you cancel your insurance before you turn in your plates, when you have to change insurance to a different state, when changing vehicles, and non-payment on your insurance. Any lapse can cause revocation or suspension of registration, but a lapse of ninety days or more will cause your license to be suspended.

You can avoid having your license suspended by giving up your plates right away, because each day you don’t have insurance but you do have those plates, it costs you, and if you exceed the 90 days your license and registration will be suspended for the full period of time you went without insurance.

The only time you can let your insurance fall behind for a vehicle you aren’t using is when you have a motorcycle. Motorcycles only require insurance when they’re being used.

Sincerely,

Fashun Guadarrama.

Lapse in car insurance coverage in New York.