Originally Posted by Xetchx
Not to disagree but, I have never in my life heard of anyone getting a letter from DOT or DMV about not having Insurance or have I heard of a cop knowing you don't have insurence by running your plate. If your lien holder doesn't find out your good, the cops will never know untill you get pulled over or get into an accident.
Also how could a Insurance cmpany notify DOt or DMV about you dropping your coverage, it your right to drop it at any time to change service providers and you owe no responsibility to the previous provider to inform them you have/will be using somebody else. If that were the way it was I would still have my last insurance company saying I don't have coverage because I got tired of their way of doing busness and paid my bill then just stopped taking there calls
It happened to me. The insurance company will notify the DMV that your ocverage with them has expired, the DMV then requires that you submit proof of insurance. Since it is illegal to posses plates without insurance, they put out a pull order on your plates, you get stopped the cop sees that your plates are due to be pulled since you have provided no proof of insurance, your car is the left sitting on the side of the road with no plates, so they tow it. Most places are nice enought o let you call a tow truck and have it towed were you want, but they could just impound it.
You may not have an obligation to your previous provider, but you do have an obligation to the DMV. All the insurance company does it notify the DMV that you no longer have coverage with them, when you get a new company, they inform the DMV that you now have coverage with them, no harm no foul, but if the DMV never gets a new proof of insurance form, your up shit creek. I got a ltter requesting new proof of insurance, but thats as far as it went, my friend however wasn't so lucky. He had a civic that he had the oil changed in, he was driving down the road, loses oil pressure, blows the engine. Calls a friend to come get him, he comes back later to find the police taking his car, because a cop stopped and ran the late, came back with a pull order, because he s on his parents insurance who live in florida, while he was living here for some personal reasons, and the insurance company never sent the papers to the DMV here, no insurance = no tags = no car, it sat in the impound lot for two or three days because he needed to get the insurance company to first get the papers to the DMV, before he could go down and pay to get it out.
It isn't something that happens often, but it certianly does happen.