While we do not have a complete list of all the states that require insurance companies to notify the state's Department of Motor Vehicles (DMV) when there is a lapse in coverage, there are several that do have this mandate. As States' DMVs become more computerized it is becoming common that state laws are being adjusted so that the DMVs are informed electronically by insurance companies when a person's auto insurance cancels or lapses.

A few of the states that currently require insurance companies to inform the state's DMV when a person's motor vehicle lapses or has been terminated include: Florida, Georgia, Louisiana, New York, Ohio, Oklahoma, Oregon, Virginia and the District of Columbia as well as Pennsylvania and Delaware.

In Pennsylvania insurance companies are required to notify PENNDOT when an insurance policy is cancelled by the insured or the insurer. Insurance companies are NOT required by law to notify PENNDOT when a vehicle owner acquires a new insurance policy with the same or different insurance company. It is the vehicle owner’s responsibility to notify PENNDOT of the new insurance after receiving a letter of inquiry from PENNDOT.

In Delaware the Division of Motor Vehicles aggressively enforces the Delaware Uninsured Motorist Law. The DMV receives notice from insurance companies of any terminated or lapsed policies. If your policy terminates or lapses without replacement by another policy, you will be penalized. These penalties include fines, the surrender of tags, and the loss of your driver’s license.

Georgia statute 375-8-1-.02 (Insurer Reporting Requirements) states that insurers shall provide the information name of insurer, vehicle identification number, make and year of the insured vehicle, policy effective date, and date of coverage termination upon termination of coverage to the Georgia Electronic Insurance Compliance System, the Department’s electronic database of motor vehicle insurance coverage information.

To find out if your state requires motor vehicle insurance companies to notify the DMV when a person's insurance lapses or is terminated, contact your local Department of Motor Vehicles.