What is an insurance lapse in New York State? 
An insurance lapse means that there is no liability insurance coverage for a vehicle registered in New York State for a period of time. If there is a lapse of insurance for a vehicle registered to you , the DMV can suspend your registration and driver license. 

What can cause an insurance lapse? 
Any amount of time that your vehicle is registered but not insured can cause a lapse in your insurance coverage. An insurance lapse can occur between the date your insurance is cancelled and the date your new insurance begins you surrender your vehicle plates your registration expires ' other proof' of insurance for example, a vehicle registered in another state, or a vehicle repossessed or impounded is valid your insurance company reinstates your insurance coverage A lapse in insurance coverage can also occur between the date you register your vehicle and the date your new insurance coverage begins. 1 See Respond to DMV insurance letters and orders [1] for instructions on how to resolve an insurance lapse. If the registration suspension period is more than 90 days , you must surrender your vehicle registration and plates. The DMV will also suspend your driver license. Your driver license will be suspended for the same number of days as your registration suspension. To reinstate your driver license , you must pay the DMV a $50 license suspension termination fee [2]. 

What will happen if I drive without insurance (with lapsed insurance)? 
Do not drive any vehicle that is not insured. you could be arrested or ticketed your vehicle can be impounded by a law enforcement officer the DMV will revoke your registration and your driver license 

What will happen if I or my uninsured vehicle is in a traffic crash? 
Your license and registration will be suspended , and you will need to pay fines and penalties. If your vehicle does not have insurance and you or someone else driving your uninsured vehicle are involved in a traffic crash

user: Good afternoon. Need some information about avoiding an insurance lapse.

assistant: For that, you need to keep the address for your vehicle registration and driver license current with the DMV. Plus, you also need to keep liability coverage from a company with license by NYS Department of Financial Services and authorized by the NYS DMV.

user: O.k, thanks. Now, what can you tell me if I happen to not count with a valid auto liability insurance coverage for my vehicle?

assistant: If you have that situation, you must inmediately surrender your registration and vehicle plates.

user: Umm, that's rough, but i guess is your procedure. Say, someone else can register my vehicle if my registration is suspended, right?

assistant: Absolutely not. If your intention is to avoid the imposed suspension, the DMV will found that out and will not issue a new registration.

user: What can i do then, in case that happens?

assistant: Is your registration still valid?

user: No, it already expired.

user: Don't mind me on that last thing. What could happen if i'm already suspended?

assistant: Then, as said before in other questions, you must surrender your plates to the DMV or pay the optional civil penalty for the entire length of the lapse. Of course, that last thing is in case you are eligible for that.