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

[jw6854]

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?

[flyingron]

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.

[jw6854]

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."

[Mr. Knowitall]

The problem is that you were breaking New Hampshire law:

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?

[davidmcbeth3]

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?