Will I face penalties if I turn in a tag from a vehicle with lapsed insurance but have insured another vehicle? If you’re wondering about the consequences, it’s important to know that if your old tag remained active after your insurance lapsed, there’s a risk that your state’s DMV may impose penalties when they discover the gap in coverage. In many states, vehicles must carry continuous insurance if the registration and tags are still valid, and a failure to do so can result in fines or a suspension of your registration privileges.
Turning in your old tag could trigger a review of your coverage history and lead to penalties if your DMV sees that the vehicle was effectively uninsured for an extended period.
What penalties might I face if my insurance lapses while the tag remains active?
You could face fines, late fees or even a suspension of your registration or driver’s license, depending on your state’s regulations. In many places, any vehicle with an active tag must have continuous insurance coverage, and failing to maintain that coverage can result in penalties once the state becomes aware of the lapse.
The severity of these penalties varies, but they often include paying a set fee for each day or month of lapsed coverage and possibly reinstatement fees for the registration.
Can I transfer my old tag to a new vehicle?
In some states, you can transfer a valid tag to a new vehicle, but you generally need to clear up any issues or penalties related to the old vehicle first. This might involve confirming that there were no lapses in insurance coverage or paying any outstanding fees. Once everything is settled, you’ll typically need to complete the appropriate transfer paperwork with your state’s DMV, provide proof of insurance for the new vehicle, and pay any applicable transfer fees.
Final thoughts
Before registering a new vehicle, it’s best to contact your DMV to see if you owe any outstanding fees or penalties related to the lapsed coverage on your old tag.
In some cases, proving that the vehicle was not in use or was sold before the lapse occurred might help reduce or eliminate penalties. You’ll also need to show proof of insurance for your new vehicle.
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