There is not a day that goes by where our agency doesn’t receive a call to remove insurance from a vehicle because the vehicle has been sold, destroyed or is no longer in use. The first question we ask is “have you turned in the tags to DMV”? Often the answer is “not yet” or “I will today or tomorrow”. This presents a BIG problem!
If you remove insurance from a vehicle and the tags have not been returned to DMV or transferred to another vehicle, you will be fined $500. The fine will be assessed even if there is only a few days lapse in coverage. DMV does not care whether the vehicle is being driven, destroyed or parked in the back yard. As long as you have the tags you must maintain liability insurance or pay the uninsured motorist fee.
Uninsured Motorist Fee
Every person registering an uninsured motor vehicle shall pay a fee of $500 at the time of registration. Payment of this fee allows a motor vehicle owner to operate an uninsured motor vehicle. Payment of this fee does not provide the motorist with any insurance coverage. The uninsured motorist remains personally liable if he or she is involved in an accident. The fee is valid for twelve months but may be prorated for the unexpired portion of the registration period.
Paying the uninsured motorist fee verses obtaining an insurance policy is not smart. Insurance policies provide liability coverage, uninsured motorist coverage, under-insured motorist coverage, comprehensive and collision coverage and even Roadside Assistance with some policies. Payment of the uninsured motorist fee does not provide any coverage.
Before you cancel insurance from any vehicle TURN IN YOUR TAGS!
The Andrew Agency
If you have questions about car insurance, SR22 insurance or any other type of insurance contact The Andrew Agency at 804.320.2886 or visit theandrewagency.com/contact to schedule an appointment.