What Do I Do After My Car Insurance is Cancelled?

It is against the law to operate a car without active auto insurance in just about the continental United States of America. And it is strictly unlawful to operate a car in the state of Maryland without a valid car insurance that carries the minimum liability and uninsured motorist coverage of $30, 000 per person , $60,000 per accident and $15,000 property damage coverage and insured motorist property damage. So driving a car without auto insurance poses a severe personal and public risk. So what do I do after my auto insurance is cancelled? If you find yourself in this situation then you do any of the following: 1) Get Your Auto Insurance Reinstated; 2) Get New Car Insurance; 3) Return the plates, tags or license plates to the MVA. 1) Get Your Auto Insurance Reinstated: Getting your car insurance reinstated is the wisest option because the insurance will become active like it was never cancelled. It also helps you avoid any MVA penalties that would have accrued as a result of the cancellation. There is a penalty of $200 for the first 30 days per vehicle and $7 dollars per day per vehicle . By reinstating you also avoid your tags and plates picked up by the state police. Yes, the state police will be ordered to pick up your tags, even at your home address. By reinstating your car insurance, you can prevent your car from being towed. If an uninsured person in the state of Maryland is stopped by the state police, they can request that the car be towed and the car has to be insured to be released from the tow lot. 2) Getting New Insurance: Reinstating your car insurance after cancellation may be an ideal option but not for everyone. Let's say that you are paying $1000 per month for your car because you have 3 at fault accidents in the last 3 years and you are a Baltimore City resident. You lost your Job and your car insurance is now 3 months behind, meaning that you will need $3000 to reinstate. Your MVA penalty is $200 for the first 30 days and you have been uninsured for 90 days. So you own the MVA $420 for 60 days of insurance lapse and $200 for the first 30 days of lapse, bringing your MVA total owed to $620. In this case, it is cheaper to start a new insurance policy with a $1000 down payment and pay the MVA $620 in penalties than to pay $3000 to reinstate and pay $0 to the MVA . 3) Return Your Plates or Tags to the MVA: Every vehicle that is tagged in Maryland must be insured and it is that simple with no exceptions. The insurance companies are mandated by statute to report all car insurance cancellations to the MVA. The only way that the MVA will know that your car is not being driven without insurance is if the plates or tags have been returned to the MVA. Your car insurance can be cancelled as per your request or by the insurance company for nonpayment. Always return your plates to the MVA before cancelling your insurance to avoid any MVA penalties. Also get new insurance, reinstate your current policy or return your license plates to the MVA to avoid or reduce MVA penalties and tags pickup by the state police.