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.

Registering Your Car in Georgia For Auto Insurance Coverage

Reader’s Question:

My mother bought me a vehicle. She lives in Alabama and I live in Georgia. Can she insure it in Alabama and I register it here in GA?

Ed

Augusta, GA

The Georgia laws states that you will have to have your car insured in Georgia if your registration and license plates are from GA. Even if Georgia did permit you to have an out of state insurance company cover your car it would likely be hard to find an insurance company that would cover a vehicle that was insured in Alabama but driven and kept out of state in Georgia.

The Georgia Motor Vehicle Division of the Department of Revenue states that car owners and lessees in this state are required to carry continuous GA mandatory liability insurance coverage on their car(s) to:Legally operate a vehicle(s);Register and get Georgia license plates (tags); and, Renew, transfer or replace their existing Georgia license plates (tags).

If your name is on the title of the vehicle your mother purchased for you then it should not be hard for you to obtain your own car insurance on the car. If your name is not on the title then there are some insurance carriers that will permit you to get insurance without insurable interest in the vehicle, but it would not be difficult for you to place coverage on the vehicle if your name was added to the car’s title.