Question

If you don't renew your coverage or are canceled by an insurance company, what must you do to avoid a penalty from DHSMV?

a) Pay a fee and keep driving
b) Surrender your license
c) Provide proof of new insurance and pay a reinstatement fee
d) Nothing, there is no penalty

Answer 1

If you don't renew your coverage or are canceled by an insurance company, you must provide proof of new insurance and pay a reinstatement fee to avoid a penalty from DHSMV.

Step-by-step explanation:

If you don't renew your coverage or are canceled by an insurance company, you must provide proof of new insurance and pay a reinstatement fee to avoid a penalty from DHSMV (Department of Highway Safety and Motor Vehicles).

Option c) Provide proof of new insurance and pay a reinstatement fee is the correct answer.

By providing proof of new insurance, you demonstrate that you have obtained coverage to comply with the legal requirements. Paying a reinstatement fee is necessary to reinstate your driving privileges after your coverage has been canceled or not renewed.