What Happens If My Auto Insurance Lapses? 
If you live in a state where auto insurance is required in order to maintain registration , then in many cases , like here in Connecticut , the insurance company will notify your state 's Department Of Motor Vehicles -LRB- DMV -RRB- about the lapse . DMV will send you a letter for each of the cars on your policy asking that you show proof of continuous coverage from the date of the lapse . If you have not obtained coverage elsewhere , DMV will notify you that your registrations will be suspended and then also levy a fairly hefty fine . 