What are the consequences of a vehicle's insurance lapse?

[DeVictoria]

Here is an introduction to the consequences of a vehicle's insurance lapse: 1. Unable to pass annual inspection: A vehicle will be penalized if its insurance lapses. Among vehicle insurances, there is a compulsory state insurance - compulsory traffic insurance. If caught by traffic police, a fine of double the amount of the compulsory traffic insurance may be imposed, and the vehicle could be impounded. Additionally, if the vehicle is in a lapsed insurance state during the annual inspection, it cannot pass. 2. Paying out of pocket: After a vehicle's insurance lapses, it is essentially driving uninsured. If the lapse is not discovered in time, any accidents that occur during the use of the vehicle will have to be paid for by the owner. Minor scratches are one thing, but if it's a major accident or a collision with a luxury car, the losses could be substantial. Driving an uninsured vehicle poses a significant threat to one's wallet. 3. Increased insurance costs: After a vehicle's insurance lapses, the cost of insurance may increase. If insurance is continuously purchased from the same company, there are relatively large discounts available. If no claims were made in the previous year, the cost of vehicle insurance in the second year will be discounted accordingly.