My Car Insurance Lapsed, and I Had an Accident: What Do I Do?
Driving without insurance can pose many legal and financial risks, especially if you’re involved in an accident. Whether you’re at fault or not, navigating an accident without insurance can be overwhelming.
If you’re facing this situation, don’t worry. Our Allentown car accident lawyers are here to help you protect your rights and explore your legal options. Read on to learn more about car insurance lapse grace periods and what to do if you’ve been in an accident.
What Happens if My Car Insurance Lapses?
If your car insurance lapses, you could face serious consequences. Legal penalties in Pennsylvania include fines, license suspension, and possible vehicle impoundment. There’s also a high financial risk — you could be personally responsible for damages if you cause an accident.
Additionally, insurers view lapsed coverage as high-risk, which can lead to increased insurance rates when you reapply. Without coverage, you may also experience a loss of protection, meaning no benefits for your own injuries or vehicle repairs.
In addition, Pennsylvania law deems you to have limited tort if you are operating a vehicle without insurance and get into an accident. Finally, if you’re financing or leasing, lenders may require proof of insurance, and a lapse could result in loan default.
Which Motor Vehicles Must Be Covered by Insurance?
In Pennsylvania, all registered motor vehicles must have liability insurance to cover potential damages or injuries caused in an accident. This includes cars, trucks, motorcycles, and buses. The state mandates minimum coverage of $15,000 for bodily injury per person, $30,000 per accident, and $5,000 for property damage.
FAQs About the Car Insurance Lapse Grace Period
What Is a Car Insurance Lapse Grace Period?
A car insurance lapse grace period is a short window of time where your insurer may allow you to reinstate your policy without it being considered a full lapse. Typically, grace periods vary from a few days to a month.
During this time, you may still be able to pay your premium and restore coverage without penalties or requiring a new policy. However, not all insurers offer a grace period, and driving without active insurance — even within this window — can still have legal consequences.
Does PA Have a Grace Period for Car Insurance?
No, Pennsylvania does not provide a grace period for car insurance lapses. The state requires all registered vehicles to have continuous liability coverage. If your policy lapses, even for a single day, you may face penalties, including fines and suspension of your vehicle registration.
Some insurance companies may offer a brief car insurance lapse grace period before officially canceling your policy, but this varies by provider. To avoid penalties, check with your insurer about their specific grace period policies.
How Long Can You Go Without Car Insurance Before Being Penalized in PA?
In Pennsylvania, penalties for an insurance lapse can begin as soon as your coverage expires. Your insurance company is required to alert the Pennsylvania Department of Transportation (PennDOT) that you have no active policy.
The penalty for driving without insurance can include one or more of the following:
- A minimum $300 fine for driving uninsured.
- Vehicle registration suspension for three months, requiring a $94 restoration fee.
- Driver’s license suspension in some cases, especially if you’re caught driving without insurance before.
If your lapse was due to a short-term issue, such as a late payment, and you can provide proof of new coverage within 31 days, PennDOT may waive the registration suspension. However, reinstating insurance after a lapse can still lead to higher premiums.
How Long Can I Drive My Car After Insurance Expires?
Legally, you cannot drive your car at all once your insurance expires. Pennsylvania law mandates continuous insurance coverage, meaning there is no legal buffer period that allows you to drive without an active policy. If you’re caught driving without insurance, you risk serious consequences.
Even if your insurance company offers a car insurance lapse grace period for premium payments, this does not extend to legal coverage on the road. Until your policy is reinstated, you should avoid driving to prevent legal trouble and financial liability in the event of an accident.
What Happens if Your Insurance Expires and You Get in an Accident?
Being involved in a car accident on its own can be overwhelming, but even more so if you don’t have an active insurance policy. Here’s a step-by-step guide on what to do if you find yourself in this situation.
1. Stay Calm and Check on Passengers
Immediately after the accident, take a moment to steady yourself. Make sure you’re safe and unharmed and check on all passengers involved. If there are any injuries or fatalities, call emergency services right away.
2. Gather Information and Possible Evidence
Once you’ve checked yourself for injuries, you’ll need to speak with the other parties involved in the accident. Make sure you collect the following details:
- Personal Information: Names, addresses, and contact numbers.
- Vehicle Details: Make, model, license plate numbers, and VINs.
- Insurance Information: Even if your policy has lapsed, obtain insurance details from other drivers.
If possible, thoroughly document the scene. Take pictures of vehicle damages, the accident scene, and any relevant road conditions. If there are bystanders, gather their contact information and statements. This evidence can be crucial for any legal or insurance proceedings.
3. Report the Accident
In Pennsylvania, certain accidents must be reported to the Pennsylvania Department of Transportation (PennDOT):
- Immediate Reporting: If the accident involves a fatality or a severe injury, call 911. You must immediately report it by calling the Motor Carrier Enforcement Section.
- Written Report: For any other accidents involving personal injuries that require medical attention, or if there’s damage to any vehicle to the extent that it requires towing, a detailed written report must be mailed within 30 days.
4. Notify Your Insurer, Even With a Lapsed Policy
Contact your insurance company quickly, even if your policy has expired. They need to be informed about the incident, and there might be options to reinstate your policy (if your provider offers a car insurance lapse grace period) or discuss potential coverage for the accident.
5. Consult a Car Accident Attorney
Navigating the legal implications of an accident without insurance can be daunting. It’s generally best to consult with a car accident attorney who can provide guidance tailored to your situation. They can help you understand your rights, potential liabilities, and the best course of action moving forward.
6. Check Your Financial Responsibility
Without active insurance, you may be personally liable for damages and injuries resulting from the accident. Assess your financial situation to determine how you can cover the following car accident expenses if needed:
- Property Damages: Repairs or replacements for vehicles and other property.
- Medical Expenses: Hospital bills, rehabilitation, and other medical costs.
- Legal Fees: Potential costs if the other party decides to sue.
7. Follow Your Accident Lawyer’s Advice
Your attorney can provide specific guidance based on the details of your case. Share all relevant information and documentation with your attorney. Listen to their recommendations regarding statements, settlements, and court proceedings, and make sure to raise any questions you might have.
8. Reinstate Your Insurance
Finally, you’ll need to reinstate your car insurance in PA as quickly as possible. Contact your insurer to discuss reinstating your policy or obtaining new coverage. If you have a car insurance lapse grace period, it could be as simple as paying your regular premium.
A lapse can lead to higher premiums or additional fees, so be mindful of this as you navigate reinstating your coverage. To help keep your coverage from lapsing again, set up automatic payments or reminders to ensure your policy remains active.
What Happens if I’m Hit by an Uninsured Driver?
Being involved in an accident with an uninsured driver can be frustrating and financially stressful. However, there are legal options and insurance protections available to help you recover damages.
What Happens When You Sue an Uninsured Driver?
If you’re hit by an uninsured driver, you can sue them personally for damages. However, many uninsured drivers lack the financial resources to pay for medical bills or vehicle repairs, which can make it difficult to recover full compensation. This is why uninsured motorist (UM) coverage is one of the most important coverage types to have.
What Is the Deductible for Being Hit by an Uninsured Driver?
If you have UM coverage, your deductible depends on your policy. Some policies have no deductible for UM claims, while others require you to pay a portion before coverage applies. Pennsylvania law does not require UM coverage, so make sure to check your policy for it. You may want to add this protection to help you avoid out-of-pocket expenses after an accident.
Recent polling shows that 15% of Americans allow their car insurance lapse, making UM coverage essential as well as full tort coverage. That way, if you are in an accident with someone who doesn’t have insurance, your medical needs can still be taken care of.
How To Renew a Lapsed Policy
If your car insurance has lapsed, contact your insurer immediately to discuss reinstatement. Some companies offer a car insurance lapse grace period for renewal, but if your policy has been canceled, you may need to apply for a new one.
When renewing, consider whether to choose full tort or limited tort coverage. Full tort vs. limited tort affects your right to sue for pain and suffering after an accident. Full tort provides unrestricted rights, while limited tort may limit recovery unless you meet certain exceptions. Always review your policy options carefully before renewing.
Understanding the Car Insurance Lapse Grace Period
Dealing with a car accident after the other driver’s insurance has lapsed can be overwhelming, but understanding your options can help you navigate the situation.
If you’ve been in an accident and need guidance, our experienced legal team is here to help. Contact us today to protect your rights and explore your legal options.