What happens if my car insurance lapses in California? You can face these penalties, DMV says

When it comes to driving on California roads, all drivers are legally required to have car insurance.

A reader asked our journalists with How To California — a new community-driven series to help readers navigate life in the Golden State: What happens if your car insurance lapses?

“How long do you have before the insurance company reports it to the DMV?” the reader wrote in an email to The Sacramento Bee.

Here’s what the California Department of Motor Vehicles said:

What happens if my car insurance lapses in California?

According to insurance company Progressive, lapses in car insurance coverage are “somewhat common.”

They often occur when drivers fail to pay their fees and are dropped from their insurance companies.

“Your car insurance policy won’t be canceled immediately because you miss a payment,” Progressive said. “Auto insurance companies are required by state law to provide notice before canceling your policy.”

Drivers usually have between 10 and 30 days after missing a payment before coverage is canceled, Progressive said.

When is DMV notified about car insurance lapses?

“Insurance companies are required to notify the DMV immediately following a cancelation of the customer’s policy,” usually electronically the DMV’s Office of Public Affairs wrote in an email to The Bee.

The DMV said it issues a warning letter and suspends the driver’s vehicle registration under the following circumstances:

1. The insurance policy is canceled and a replacement policy is not submitted within 45 days.

2. Insurance information is not provided to the DMV within 30 days of issuing a registration card for initial registration or transfer of ownership.

3. The registration is obtained using false evidence of insurance.

“The DMV does not issue a monetary penalty for lapses in coverage,” the DMV said.

As long as the driver continues to pay their premiums within a time frame designated by their insurance company, the DMV said, the insurance company doesn’t always notify state officials about payment lapses.

How do I notify the state about reinstating car insurance?

Even when car insurance has been reinstated, the DMV said offices and call center personnel cannot process paperwork to clear vehicle registration suspensions for insurance reasons.

“Customers who receive a letter stating their vehicle registration will be suspended in the near future or has already been suspended must submit their insurance information and/or reinstatement fee,” the DMV wrote.

Insurance information can be submitted online, along with a reinstatement fee of $14.

Drivers who receive a renewal notice, registration card or letter from the DMV’s Vehicle Insurance Program can submit insurance information at a kiosk using the personal identification number located at the top middle portion of the document.

If drivers choose to submit the information by mail, customers must include the detachable stub from the notification letter, proof of liability insurance and/or reinstatement fee payment to the DMV.

What penalties can I face for driving without insurance?

In addition having your vehicle registration suspended, the DMV said drivers with lapsed insurance can be cited, have their vehicle impounded and be liable for damages when involved in a collision.

If you’re caught driving without insurance, you could pay a fee of $100 to $200 for the first offense.

For a second offense, fees are between $200 to $500, according to Kelly Blue Book.

This story was originally published June 21, 2024 at 7:24 AM with the headline "What happens if my car insurance lapses in California? You can face these penalties, DMV says."

Angela Rodriguez

The Modesto Bee

279-386-2738

Angela Rodriguez is a service journalism reporter for The Bee. She is a graduate of Sacramento State with a bachelor’s degree in journalism. During her time there, she worked on the State Hornet covering arts and entertainment.