Results 1 to 5 of 5
  1. #1
    Join Date
    Nov 2010
    Posts
    2

    Angry Fined for Lapse in Auto Insurance While Living in a State Allowing Self-Insurance

    My question involves an insurance fine from the state of Maryland that is now with the Central Collections Unit.

    In November of 2005 I moved to New Hampshire from Maryland. Now New Hampshire is one of only two states that do not require car insurance. Therefore I never got insurance in New Hampshire but I also did not return the plates to Maryland. My car was still registered with Maryland because my registration was not up until 2007.

    I ended up moving back to Maryland in 2009 and was notified by the State that I owed roughly $5,000 for the insurance lapse.

    When I talked to them, they said that if I could provide proof of insurance they would remove the fine, however insurance isn't required in New Hampshire and I didn't get any. I can prove that New Hampshire was my legal residence, and that I was paying New Hampshire taxes but nothing else beyond that. The person at the CCU also said that they had never heard of a state not requiring insurance.

    Do I have a case to fight this fine?

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Fined for Lapse in Auto Insurance While Living in a State Allowing Self-Insurance

    Huh? What makes you think insurance isn't required? It has nothing to do with your legal residence. Maryland requires insurance of all cars registered in the state. You broke that law. It doesn't matter that you were also breaking New Hampshire law. If you had complied with the latter you'd have been free (though ill-advised) to cancel insurance.

    The MVA specifically warns you not to cancel insurance until the plates are returned and you have the receipt;.

    I see no way out of this.

  3. #3
    Join Date
    Nov 2010
    Posts
    2

    Default Re: Fined for Lapse in Auto Insurance While Living in a State Allowing Self-Insurance

    Quote Quoting flyingron
    View Post
    Huh? What makes you think insurance isn't required? It has nothing to do with your legal residence. Maryland requires insurance of all cars registered in the state. You broke that law. It doesn't matter that you were also breaking New Hampshire law. If you had complied with the latter you'd have been free (though ill-advised) to cancel insurance.

    The MVA specifically warns you not to cancel insurance until the plates are returned and you have the receipt;.

    I see no way out of this.
    I wasn't breaking New Hampshire law.

    "Every state in the nation, except for New Hampshire and Wisconsin, requires that you have liability insurance, and that mandatory coverage varies according to state."

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Fined for Lapse in Auto Insurance While Living in a State Allowing Self-Insurance

    The problem is that you were breaking New Hampshire law:
    Quote Quoting 261:45 Resident of State.
    Notwithstanding the provisions of RSA 261:44, when a nonresident has established a bona fide residency in this state, said resident shall have a maximum of 60 days from the date his residency was established in which to register his vehicle in New Hampshire.
    Had you obeyed the law this would not be an issue, as you should not have had a period in which Maryland regarded your car as uninsured. As you chose not to obey the law, you've put yourself into the position of having a vehicle that was registered in Maryland and should presumptively have been insured as required by Maryland's laws.

    What happened in 2007? Did you then register the vehicle in New Hampshire, or did you let the registration lapse? What's the current status of the car and title?

  5. #5
    Join Date
    Feb 2010
    Location
    CT & IL
    Posts
    5,273

    Default Re: Fined for Lapse in Auto Insurance While Living in a State Allowing Self-Insurance

    Quote Quoting jw6854
    View Post
    I wasn't breaking New Hampshire law.

    "Every state in the nation, except for New Hampshire and Wisconsin, requires that you have liability insurance, and that mandatory coverage varies according to state."
    Also, some states allow a bond to be posted instead of having insurance ... sounds like you wanted to save 200 bucks on NH plate fees & now its bitting you in the butt. Am I correct in assuming you did not plate the car in NH?

    1. Sponsored Links
       

Similar Threads

  1. Suspension and Revocation: Suspension Due to Insurance Lapse, But Purchased New Insurance Before Citation
    By Stlng in forum Driver's Licenses
    Replies: 1
    Last Post: 08-27-2011, 08:01 AM
  2. Suspended Registration: Assessed a Fine for Insurance Laps, But No Actual Lapse Occurred
    By kshannon in forum Vehicle Registration and Title
    Replies: 3
    Last Post: 11-11-2010, 06:43 PM
  3. Traffic Accidents: Lapse of Insurance and Hit and Run
    By bdp in forum Accidents and Injuries
    Replies: 2
    Last Post: 11-16-2008, 10:33 AM
  4. Auto Insurance: State Farm Auto Insurance Payment Problem
    By danreinertson in forum Insurance Law
    Replies: 6
    Last Post: 12-30-2007, 09:17 AM
  5. Auto Insurance: lapse in auto insurance
    By danielle victory in forum Insurance Law
    Replies: 6
    Last Post: 12-07-2005, 12:37 PM
 
 
Sponsored Links

Legal Help, Information and Resources