All drivers in Lexington, NC are required to maintain the state’s minimum levels of coverage for bodily injury, property damage and uninsured motorists. Anyone who has a lapse in coverage, and therefore does not meet the state’s minimum standards for a period of time, is subject to a penalty. The penalty is determined by how many lapses there have been in the previous three years and the duration of the current lapse.

What Happens When You Have a Lapse in Coverage

When you have a lapse in coverage, your auto insurance provider is required to notify the department of motor vehicles (DMV) in North Carolina. The DMV will then send you Form FS 5-7, which you must complete and return within 10 days. When submitting this form, you will need to provide proof that you have a current insurance policy and pay the appropriate fine.

The Fines and Fees

In North Carolina, the fines assessed are primarily determined by the number of previous lapses you have had in recent years. In any given three-year window, the first fine is $50. After your first lapse, the fines increase to $100 and then $150 for the second and third offense. Failure to submit this payment within 10 days results in increased fines.

Should you fail to return Form FS 5-7 with the appropriate documentation and payment within 30 days, the DMV will revoke your license plates. When you apply for new ones, you will have to pay the original fine, any late fees, a $50 service fee and the fee for new license plates.

Find Insurance Immediately

The first step to recovering from a lapse in insurance coverage is to immediately find new insurance. You can use our online tool to shop around and find a new policy today. If you need help with the DMV’s paperwork, call our agents for assistance.