To avoid these penalties, always turn in your license plates and cancel your registration if you plan to have a lapse in car insurance. Better yet, contact your insurer, who is likely to work to keep good customers. Insurers are supposed to give you a 30-day advance notice before canceling your policy. "If you miss a payment, the important thing to do is get in contact with them right away," says Bob Passmore, executive vice president and chief legal officer the Property Casualty Insurance Association of America. âSo youâll get a lot of opportunities to make it right."