What Is Car Insurance Lapse in Georgia?
Reader’s Question:
What is the meaning of an auto lapsed policy in the state of Georgia? How much is the fee?
Griffin
Sandy Springs, GA
According to the Georgia Department of Revenue (DOR) a lapse is defined as ten or more days where the records show that your car was not covered by a car insurance policy.
If the auto insurance lapse fee is not paid within thirty days of the letter’s date, the car registration will be suspended. To terminate the suspension, the car owner must now pay the $25 lapse fee in addition to the $60 reinstatement fee as well as show proof of car insurance.
To get more information with regards to an insurance lapse in Georgia you may contact the DOR.
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.
What Does a Non Owner SR22 Insurance Policy Cover?
Q: Should I get into a car accident, what insurance will cover the damages? My non owner SR22 insurance, or the insurance belonging to the owner of the car?
A: Non owner SR22 insurance is a special exception in the car insurance world, but the normal rules still apply. And those rules are that car insurance is attached to the car most of the time, and not to the driver, so if you drive a friend’s car and get into a car accident, then you will be covered by the insurance policy that car is named on so long as you had reason to believe the policy owner would allow you to drive the car.
Even if you only drive insured cars, you will stil need your non owner SR22 insurance coverage, although you may never use it. It’s there as back up, as proof of your responsibility. And, if your friend’s own car insurance coverage runs out in a bad crash, your own will kick in and extend the limits.
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