States with the Highest Cost of Canceling Car Insurance
10. Delaware
Cost of a 60-day lapse in coverage: $282
Fine for uninsured driving violation: $1500-2000
Additional (yearly) insurance cost increase after uninsured driving violation: $250
Delaware ranks tenth in the nation for the most expensive consequences of owning a vehicle without insurance, even if drivers are lucky enough to avoid getting caught driving uninsured. For those who are not so lucky, heavy fines of $1500 to $2000 are in the cards, as is a further $272 increase in insurance premiums. Other consequences of driving uninsured in Delaware include registration suspension, license suspension, and confiscation of plates.
9. Louisiana
Cost of a 60-day lapse in coverage: $367
Fine for uninsured driving violation: $175
Additional (yearly) insurance cost increase after uninsured driving violation: $225
Drivers in Louisiana stand to lose a substantial amount of money for a 60-day lapse in insurance coverage. DMV fees make up about two-thirds of the cost while losing the opportunity to use a prior insurance coverage discount makes up the other third. And the Sugar State is by no means sweet to those who are caught driving uninsured: driving without insurance results in a fine of $175, up to 30 days of jail time, confiscation of plates, and an impounded car.
8. Maryland
Cost of a 60-day lapse in coverage: $406
Fine for uninsured driving violation: $1,000
Additional (yearly) insurance cost increase after uninsured driving violation: $360
Canceling auto insurance is by no means free in the Free State. Maryland drivers do lose out on a small prior insurance discount, but primarily, they face hefty DMV fees for a lapse in insurance, which increase by $7 for each uninsured day after the first month. If caught driving uninsured, drivers risk six months of jail time, registration suspension, confiscation of plates, and five points on their driving record.
7. Oklahoma
Cost of a 60-day lapse in coverage: $408
Fine for uninsured driving violation: $250
Additional (yearly) insurance cost increase after uninsured driving violation: $400
Those with a 60-day lapse in car insurance, but who are not caught on the roads driving uninsured, lose only $8 in prior insurance discounts but $400 in insurance lapse fees. Although fines for those caught driving uninsured are only $250 — lower than those of most states — these incautious drivers face up to 30 days in jail, license suspension, confiscated plates, and an impounded car.
6. Iowa
Cost of a 60-day lapse in coverage: $489
Fine for uninsured driving violation: $250
Additional (yearly) insurance cost increase after uninsured driving violation: $400
Despite not making the top five on the list, Iowa has some of the highest DMV insurance lapse fees of any other state, at $485. As if this fee were not persuasion enough to drivers considering canceling their policies, those who are actually caught driving without insurance risk an additional $250 in fines, not to mention plate confiscation and an impounded car.
5. Massachusetts
Cost of a 60-day lapse in coverage: $500
Fine for uninsured driving violation: $500
Additional (yearly) insurance cost increase after uninsured driving violation: $500
Ranking fifth in the country for the highest cost of canceling insurance is Massachusetts. While drivers in Massachusetts do not receive a prior insurance discount, DMV insurance lapse fees are incredibly high in this state. The Bay State also has the longest maximum jail sentence (1 year) for driving uninsured out of any other state on this list and is by no means lenient with those who unwisely choose to drive uninsured.
4. Nebraska
Cost of a 60-day lapse in coverage: $500
Fine for uninsured driving violation: $1,000
Additional (yearly) insurance cost increase after uninsured driving violation: $500
The cost of canceling insurance in Nebraska is particularly severe. With a $500 DMV insurance lapse fee, drivers may think twice about canceling their policy. And if this fee were not persuasion enough, those who are actually caught driving without insurance risk 6 months of jail time, registration suspension, license suspension, an SR-22, an additional $1,000 in fines, and a further $500 increase in insurance premiums with such a violation on their record.
3. Nevada
Cost of a 60-day lapse in coverage: $514
Fine for uninsured driving violation: $600-1,000
Additional (yearly) insurance cost increase after uninsured driving violation: $501
When it comes to driving without insurance in Nevada, it’s best not to take a gamble. The Silver State penalizes uninsured drivers very severely. Drivers are automatically charged an insurance lapse fee of $251, in addition to fines that increase dramatically. The first 31-90 days will cost a driver $250, then $500 for 91 to 180 days, and then $1,000 for more than 181 days. Those caught on the roads uninsured face an additional $600-1,000 in fines and a further $500 increase to their auto insurance, not to mention registration suspension, license suspension, confiscation of plates, car impoundment, and an SR-22.
2. New York
Cost of a 60-day lapse in coverage: $576
Fine for uninsured driving violation: $150-1500
Additional (yearly) insurance cost increase after uninsured driving violation: $540
New York ranks second in the nation for some of the costliest consequences of canceling auto insurance. Drivers face DMV penalties that increase with each day: $8 per day for the first 30 days increases to $10 per day for the second 30 days, and then $12 per day for each day thereafter. For a 60-day lapse in coverage, this totals to $540. If caught driving uninsured, drivers risk added fines of $150-$1500, a $500 increase in insurance premiums, not to mention up to 15 days of jail time, registration suspension, license suspension, and an impounded car.
1. South Carolina
Cost of a 60-day lapse in coverage: $790
Fine for uninsured driving violation: $825
Additional (yearly) insurance cost increase after uninsured driving violation: $750
Drivers in South Carolina allowing a lapse in their insurance coverage stand to lose the most compared to drivers in all other states. DMV insurance lapse fees make up most of this cost, at a whopping $750, while the opportunity cost of a prior insurance discount makes up $40. Those caught driving uninsured risk losing an additional $1,245 in fines and other DMV fees, in addition to registration suspension, license suspension, confiscation of plates, and an SR-22.
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