Free Consultation
770-626-7895Would it surprise you to learn that 18.1% of Georgia drivers were uninsured in 2022? In addition, Georgia was the seventh-highest state of uninsured motorists in 2022. If you allow your insurance to lapse, the state considers you uninsured. So what happens if your car insurance lapsed and you had an accident? Our attorneys at Larrison Law Firm Auto Accident and Personal Injury Attorneys can guide you under these circumstances.
What Is Considered a Lapse in Car Insurance?
In Georgia, a lapse of car insurance coverage is going 10 days without a valid policy. Another form of lapse is the termination of one policy where you do not purchase or inform the Department of Revenue of a new policy within 30 days. Lapses can occur for several reasons:
- You need to pay your bill a few days late.
- You forgot to pay your bill.
- You are in the middle of changing policies or providers and have a few days between the termination of your old policy and the start of your new one.
- You choose not to continue paying for your existing car insurance.
You may not even realize that you have lapsed on your insurance. Fortunately, insurance companies must provide you with a notice before canceling your policy.
What Car Insurance Coverage Does Georgia Require?
Georgia law requires that everyone who drives a vehicle has insurance. At a minimum, you need liability coverage in the following amounts:
- Property damage of at least $25,000 per accident
- Bodily injury liability coverage of at least $25,000 per person
- $50,000 bodily injury coverage per accident
However, this insurance only covers other individuals’ medical coverage and their vehicle property damages. This insurance does not cover your damages if law enforcement or the courts find you at fault in the incident. Georgia does not require that you carry physical damage insurance, which would cover your vehicle during a collision or if it was stolen, vandalized, or otherwise lost or damaged.
Although insurance companies need to offer these policies, Georgia does not require underinsured or uninsured motorist coverage. However, if your car insurance lapsed and you had an accident with an uninsured motorist, your insurance would not cover your damages.
What Are the Penalties for Insurance Lapses?
You should always carry proof of your insurance in your vehicle or on your person. A penalty of $25 can be issued if you cannot show proof. You must prove you are insured to avoid paying this fee.
What happens if your insurance lapses in GA? First, your insurance carrier could void or cancel your policy and not allow you to obtain a new one. You may also face legal penalties, including:
- Suspension of your driver’s license for 60 days
- Suspension of your vehicle registration for 60 days
- $25 fee for lapsed insurance
- $60 fee to reinstate your license
- Jail time of up to one year
If you allow your insurance to lapse a second time, you could face the following:
- $25 and $60 fees for lapsed insurance and license reinstatement, respectively
- 90-day suspension of your driver’s license and registration
- Up to one year in jail
For any future lapses in insurance, some of these penalties increase significantly. Although the lapse feel and jail time remain consistent, these are the expanded penalties you could face:
- $160 license reinstatement fee
- Six-month suspension of your driver’s license
- Six-month suspension of your vehicle registration
Although the fees may seem minimal, particularly the reinstatement fee, other penalties can significantly impact your life, such as losing the ability to legally drive for up to six months. If you decide to drive without a valid driver’s license, you could face additional jail time and $1,000 in fines. Also, you only have 30 days to pay your lapse fees, and if not, you could face registration suspension until you pay these fines.
What happens if your insurance lapses and you have an accident? The financial costs could become significantly higher at the scene through tickets of $200 to $1,000 for not having insurance and during the financial recovery process. You could also face misdemeanor charges for driving without insurance.
What Are the Insurance Grace Periods for Lapsed Coverage?
If you can prove that you have insurance within 10 days of your initial lapse, you can avoid all these penalties. You also have 30 days to update the Department of Revenue with your new insurance policy information. Although your insurance company should submit this information about your new policy, you should make sure this is done, especially if you have had previous lapses.
Does Georgia Have a Reporting System?
To reduce the percentage of uninsured motorists on Georgia roads, the Georgia Electronic Insurance Compliance System within the Department of Revenue collects motorists’ vehicle insurance information. When you purchase car insurance, your insurance company submits this information to the database. The submission should include your policy effective date and the VIN of your vehicle. These companies must submit this information 30 days from the coverage start date.
If you terminate your policy, your former insurance company needs to report this termination to the same database.
Law enforcement has access to this database at all times, so if you are pulled over or involved in an accident, these professionals know immediately whether or not you have insurance.
What To Do if Your Car Insurance Lapses and You Are in an Accident
If another driver was at fault, the other driver’s insurance company should cover any property damage and injuries you received during the incident. If law enforcement finds you at fault and your insurance has lapsed, you may be responsible for paying your own and others’ damages, medical, and other expenses. In any case, you should do the following:
- Immediately contact your insurance company and be honest about the accident
- Contact our attorneys
- Pay all fines and penalties as quickly as possible
You can work with your insurance company to pay any claims, but this may depend on your reliability and relationship with the company as well as potential damages in the incident. If you do not have insurance, the company will likely deny your claims, requiring you to pay these expenses. Unfortunately, other drivers could file a lawsuit against you to recover their damages, including seeking your personal assets. It is vital to work with our attorneys.
How Do You Reinstate a Suspended Vehicle Registration?
If you had a suspension period as a result of your lapse, you cannot reinstate your registration until this period ends. To reinstate your registration, you need to secure a car insurance policy with Georgia’s minimum requirements for the next six months. You need to pay the lapse fine and reinstatement fees as well as any other fines, taxes, and fees.
The following information will also be needed:
- Reference and file numbers
- VIN
- Proof of identity (driver’s license number, Social Security number)
- Notice of suspension
You can reinstate your license at the county tag office or through the Department of Drivers Services.
Contact an Athens Car Accident Attorney Right Away
If your car insurance lapsed and you had an accident, the Larrison Law Firm Auto Accident and Personal Injury Attorneys can help you review your insurance policy. We can also discuss your legal options, including proving fault, gathering evidence, negotiating on your behalf, and protecting your rights. Schedule a free consultation, and one of our lawyers can review your case.
