What To Do If You Have No Liability Insurance in New York State

March 23, 2010 · by rosenblumlawfirm · in

In New York State, it is a law to have liability insurance on a motor vehicle. A driver must also have liability insurance on a vehicle even if it is not in use. But if you find yourself in between insurance or if you cannot pay for insurance, you should make sure to turn in car tags and report the lack of insurance to the proper officials so that your driver’s license will not be suspended.
In the event that you do not have liability insurance anymore, please respond to the New York Department of Motor Vehicles immediately. If your insurance is reinstated with the same company or you get a policy with a new company, the insurance company should inform the DMV of the policy. If not, then you will receive a letter about the situation from the DMV. In most cases, it is best to keep in contact with your insurance company to make sure it has sent a notice.
In the event that you do not get new liability coverage, you will need to turn in your car license plates. In return you should get a receipt and a letter from the DMV. Make sure to respond to the letter so that your license will not be suspended and so you don’t lose your car registration. If your car insurance is about to lapse, you will also need to turn in your car tags.

There are several instances in which your car insurance can lapse. There can be a lapse if your insurance is canceled before your new insurance starts. A lapse can also occur between the dates that your car insurance ends and when you finally turn in your tags to the DMV. There can also be a lapse if your insurance ends and then the same company reinstates it a few days later.
A driver should remember that if insurance is lapsed for 90 days, New York State will suspend a driver’s license. To reinstate a license and registration, a driver will have to pay a termination fee.
While obtaining liability insurance, drivers must remember that the company issuing the policy must be in New York State. The insurance company must also inform the DMV of the policy and the driver should have notification of the policy on them at all times (Most drivers keep it in compartments in their cars).