When Does Car Insurance Lapse in Georgia?

Reader’s Question:

What is the meaning of an auto lapsed policy? For instance, if the policy expired on July 1st and a new policy was bought on July 7th of same year, would this be considered a lapse in my policy in Georgia?

Jim

Atlanta, GA

As you are likely aware GA insurance companies must electronically report insurance information, including if your insurance that has been canceled or if there is a lapse.

A lapse is defined by the Georgia Department of Revenue (DOR) as ten or more days where the records show that your car was not covered by a motor vehicle insurance policy. Therefore if you let your auto insurance policy expired on July 1st and buy a new policy on July 7th it would appear that you are within the 10 day gap period that Georgia allows.

When the DOR sees that a car insurance has lapse for 10 days or more a Notice of Lapse Mandatory Liability Insurance Coverage will be mailed to the car owner. You will be required to make a payment of a $25 lapse fee and require you to show proof of valid car insurance coverage within thirty days.