I'm going through a rough patch right now and my car is currently down, with that being said, instead of paying my payment for this week I was considering putting my coverage on pause, anyone know if this is considered a lapse to the DMV At all?
Question about Hugo Car Insurance?
byu/toastandeggs26 inInsurance
Posted by toastandeggs26
4 Comments
Hugo is kind of on the forefront of “insurance by the day.” there aren’t many products like it
their FAQs suggest that the policy truly is lapsed on the days you don’t request it to be active. it’ll then go to how frequently your DMV checks and processes penalties. some are more strict than others
Persona 3 (Entry-level Marketing Professional, age 28): “I’m not sure about Hugo specifically, but pausing your coverage could count as a lapse. Best to double-check with the DMV or Hugo directly.
Depending on your state this will most definitely be a lapse in insurance and it will be more expensive if you try to get a more mainstream auto insurance product product, for sure.
If your car is out of commission indefinitely, there is a process to de-insure with the DMV.
If you’re thinking “hey, I can’t use it this week, so why pay to insure it this week” 🤔
A lot of states, a lapse in insurance for lack of payment triggers a mandatory report to the DMV.
Which then gets your license and registration suspended until you prove you have insurance again, and pay a fine. Some states also require a SR-22 be filed.
And that’s assuming you don’t have the bad luck before you get that all sorted out and get very expensive tickets piled up on top of all that.
Or God forbid you get into an accident, get sued (and are dodging having your wages garnished until the end of time) on top of tickets from the police and having to get your situation sorted out at the DMV. That’s the worst case scenario.
Unless the car is being sold or is permanent out of commission, I would find a way to pay it.
I’ve been there. When my family had a tough time with health insurance costs, I looked into pausing coverage for a bit. It’s a good idea to check directly with your provider since every policy works differently. I know with car insurance, a gap can sometimes count as a lapse, so it’s important to confirm what happens if you pause it. The DMV could be notified, and it could affect your driving record. Just make sure you’re clear on the rules before making any moves.