The Impact of an Expired Registration on Your Insurance Coverage
Many people wonder whether their insurance coverage is valid if their vehicle registration is expired. This is a common concern, as expired registration can lead to fines and other legal consequences. However, the good news is that your expired tag usually won’t affect your insurance coverage, especially when it comes to claiming compensation from the other driver’s insurance after an accident.
Will Insurance Cover an Accident If Registration is Expired?
The most important thing to remember is that your expired tag did not cause the accident. The other driver’s negligence is the reason for the crash. While driving with an expired tag is illegal and can result in fines, it’s not a moving violation, so it shouldn’t affect your claim for compensation.
However, the other driver’s insurance company might try to argue that your expired registration makes you partially liable. This is where having a knowledgeable and experienced insurance expert can help you navigate these legal complexities.
Can Your Insurance Company Deny Your Claim?
In most cases, your insurance company cannot deny your claim simply because your registration was expired. This is because your insurance coverage is based on your premiums and adherence to the policy’s terms, not the status of your vehicle registration.
Can You Still Seek Compensation From Your Insurance Policy?
You can still seek coverage from your insurance policy, even with an expired tag. This applies to both first-party and third-party claims.
First-Party Coverage
You can use first-party coverage to pay for damages to your vehicle or personal property, as well as for some medical expenses. This coverage remains available regardless of the registration status of your vehicle.
Uninsured Motorist Claims
If the other driver doesn’t have insurance, you can file an uninsured motorist claim with your insurance company. Your ability to file this type of claim is not impacted by an expired registration.
What Happens if You Were Driving Without Valid Insurance?
Even if your registration was expired, your lack of insurance wouldn’t affect your ability to seek compensation from the at-fault driver’s insurance. Texas law does not prevent victims from filing claims based on their own lack of insurance.
Could Your Insurance Company Cancel Your Policy Mid-Term?
Your insurance company can’t cancel your policy mid-term simply because your registration is expired. However, they can cancel your policy for other reasons, such as:
Non-payment of premiums
Driving privileges being revoked
Fraudulent claims
Excessive accidents or traffic violations
DUI or DWI convictions
Filing an excessive number of claims
Vehicle being deemed unsafe or uninsurable
Expired Tags and Insurance Premiums
While an expired tag might not affect your current insurance coverage, it can impact your future premiums. Insurance companies view drivers with criminal records (like driving with an expired tag) as higher risks and might increase your premiums to reflect that.
Legal Penalties for Driving With an Expired Tag in Texas
Driving with an expired registration can result in:
Late fees: A $25 late fee after a five-day grace period, increasing with time.
Fines: An average fine of $200, increasing with the duration of the expired registration.
Vehicle impoundment: Especially if the registration is expired for an extended period.
Delinquency penalty: A 20% penalty when you renew your registration.
Steps to Take After an Accident with an Expired Tag
If you’re in an accident with an expired tag, here are some steps you should take:
Renew Your Tag: Renew your registration immediately after the accident.
Document the Accident: Gather evidence like photos, witness statements, and police reports.
Consult with an Attorney: Contact an experienced insurance expert to understand your rights and ensure you receive the compensation you deserve.
Understanding Your Insurance Rights
Remember, while driving with an expired registration is illegal and can lead to fines and other penalties, it shouldn’t affect your ability to claim insurance coverage for an accident that wasn’t your fault. At ketomud, we are committed to helping you understand your insurance rights and navigate the complexities of your insurance policy. If you have any questions, we encourage you to reach out to us for a free consultation. We are dedicated to helping you protect your financial well-being.
