En esta noticia
The Department of Motor Vehicles (DMV) of New York has a particular mechanism that applies when an authorized insurance company notifies it about the expiration of a vehicle’s coverage.
The period during which a vehicle remains registered without being protected by insurance coverage is called insurance lapse, and activates a system that could take away these drivers’ driver’s licenses and vehicle registrations.
Traffic Law in New York: What is established regarding insurance policies?
In New York, all vehicles that are continuously registered must have valid liability coverage. The minimums established by the DMV are:
- $10,000 for property damage from a single accident.
- $25,000 for bodily injury and $50,000 for death for one person involved in an accident.
- $50,000 for bodily injury and $100,000 for death for two or more people in an accident.
The insurance must be from a company authorized by the state, so a policy taken out outside the state is not valid for a vehicle registered there.
Driver’s license and vehicle registration are suspended: How does the mechanism work when an insurance policy is allowed to lapse?
When the DMV detects an insurance lapse, that is, that a registered vehicle was uninsured, it first determines how long the interruption lasted.
The consequences can vary depending on the length of this lapse:
- The vehicle registration may be suspended for the period corresponding to the lack of coverage.
- When the interruption reaches 91 days or more, the driver’s license may also be suspended.
- The license suspension applies for the same number of days as the period determined for the registration.
- The two suspensions do not necessarily begin at the same time, so the driver may serve one first and then the other.
To recover the license after serving the suspension, the DMV also requires a $50 suspension termination fee.
Other consequences of driving without insurance coverage
The penalties are more severe when the person drives the vehicle while uninsured, and not simply keeps registered a car whose policy has expired.
Driving without coverage in New York can result in:
- Fine or arrest.
- Vehicle impoundment or seizure by the authorities.
- Revocation or suspension of the registration and driver’s license.
- A court fine of up to $1,500 for driving without insurance or allowing another person to drive the vehicle without coverage.
- An additional civil penalty of $750 to the DMV to recover the license when it has been revoked.