Can my driving privileges be suspended for non-payment of a claim in which my insurance had lapsed?

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Can my driving privileges be suspended for non-payment of a claim in which my insurance had lapsed?

I was in a car accident in which I was at fault. There is no police/accident report on file (they were never called). My insurance had lapsed that morning. I paid a good portion off but stopped paying when I too a cut in hours at my job. I am now receiving letters from a collection agency stating “they may send a copy of the denial letter to the DMV which may result in suspension of driving privileges”. Can this happen?

Asked on May 7, 2012 under Accident Law, New York

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The laws vary from state to state.  In some states, a driver's license can be suspended for driving without insurance.  Also, the DMV in some states, can suspend your vehicle registration and refuse to renew it unless you have proof of auto insurance.


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