What are the consequences of letting SR22 Insurance lapse?

Allowing your SR22 insurance to lapse, meaning failing to maintain continuous coverage during the required filing period, can have several consequences. Here are some potential outcomes:

  1. License suspension or revocation: If your SR22 insurance lapses, it can lead to a suspension or revocation of your driver’s license. This is because the SR22 filing is a requirement to maintain your driving privileges, and failing to meet this requirement can result in the loss of your license.
  2. Extension of SR22 filing period: Allowing your SR22 insurance to lapse can lead to an extension of the required filing period. If you were originally mandated to maintain the SR22 filing for three years, for example, a lapse could result in an additional period being added on to fulfill the requirement.
  3. Reinstatement fees: When your SR22 insurance lapses, reinstating your coverage and driving privileges will typically require paying reinstatement fees. These fees vary by state and can be substantial. Failure to pay the fees may further delay the reinstatement of your license.
  4. Legal penalties: Allowing your SR22 insurance to lapse may result in legal penalties or consequences, depending on your state’s laws and regulations. This can include fines, increased insurance premiums, or even potential imprisonment, particularly if you are caught driving without the required insurance coverage.
  5. Difficulty obtaining insurance in the future: A lapse in SR22 insurance can make it more challenging to obtain insurance coverage in the future. Insurance companies consider lapse history and non-compliance with SR22 requirements as red flags. As a result, they may be hesitant to provide coverage or charge significantly higher premiums.

To avoid these consequences, it is crucial to maintain continuous SR22 insurance coverage for the entire duration of the required filing period. Stay in communication with us to ensure that your policy remains active and that all premium payments are made on time. If you encounter any difficulties or have concerns about your coverage, contact us immediately to address the situation and avoid potential lapses.