It happens to many people. They get a letter from CCU ("Central Collections Unit") that there is an insurance lapse and they have been fined $200.00 for the first 30 days and then $7.00 per day thereafter. This can add up to thousands of dollars. To make matters worse, CCU will seek penalties and interest and threaten to intercept your State tax return. They will also tell you they will suspend your current registration until the fines are paid and they do sue individuals for these fines.

There are steps that you can take to fight the penalties. However, you will need to provide documentation in order to do so. If you have not had a prior insurance lapse, you can prove that your vehicle was not driven during some or all of the penalty period, you did not receive a ticket while driving the vehicle during this period, and the vehicle was not involved in an accident or collision. Maybe your vehicle was totaled and you forgot to turn in your tags. You will need a total loss report from your insurance company or a receipt from a junkyard. The Motor Vehicle Administration will not take your word for it. They want to see proof.

It is possible that your car was insured during this period. If that was the case, you will need your insurance company to fill out a form to give to the MVA.

Another exception is if you paid a premium to an insurance company or agent and they failed to provide coverage. You would need documentation to support this.

There is a form containing an Affidavit that you or others can sign to prove these elements. Just be aware that the MVA will normally not abate the fines without supporting documentation to substantiate your Affidavit.