Can You Get Your Car Out of Impound Without Insurance?

If your car has been impounded and you don't have auto insurance, what are your options?

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Car insurance for an impounded vehicle


While a car can be impounded for myriad reasons, there's only one way to get it out: by paying an impound fee and presenting the required documentation. This documentation usually includes your driver's license, vehicle identification number (VIN), and proof of insurance. If you don't have valid insurance for your impounded vehicle, it will be difficult — if not impossible — to get your car out of impound.


  1. Can your car be impounded for no insurance?
  2. How to get your car out of impound
  3. How to get impounded car insurance quotes online
  4. Car insurance after repossession
  5. Does car insurance cover damage from towing?
  6. Other considerations



Can your vehicle be impounded for not having insurance?


It depends. You can get a ticket for driving without insurance, but it is within the police officer's discretion whether your vehicle will be towed and impounded. Outside of New Hampshire, you're required by law to carry at least the minimum liability insurance. By failing to do so, you risk having your vehicle towed and impounded.

Although your state may only mandate liability coverage, you may be required to carry comprehensive and collision coverage if you drive a leased vehicle.




Do you need insurance to get your car out of impound?


You will need to show active proof of car insurance to get your vehicle out of impound. Car insurance is a requirement for any vehicle registered in a US state and used on public roads (outside of New Hampshire).




How to get insurance for an impounded car


You'll need to show proof of insurance in order to get your vehicle out of impound — which means you'll need to purchase an auto insurance policy. Streamline the process of shopping for car insurance by having the following information at the ready:

  • Personal information of any drivers who will be using the vehicle: driving history, insurance history, date(s) of birth, and driver’s license(s)
  • Primary residence: where the vehicle is parked
  • Vehicle information number (VIN)
  • Lien holder information, if applicable




Car insurance after repo


If your car is repossessed by the bank or your financing company, the best course of action is to cancel your car insurance policy immediately, since it's no longer in your possession — it's now the bank's property. Keep in mind when you finance a car, it's not entirely your property yet — for as long as you're making payments, the financing company holds a financial interest in the vehicle. If you continue to have car insurance on your repossessed car, you're paying for coverage on a car you no long own and no longer drive.

When you get car insurance again after having a repossessed car on your record, your rates are likely to be increased. This is because a history of not making car payments would show up on financial records — like your credit report — that insurers will screen when you get a new insurance policy, which is seen as a liability to car insurance companies.





Does car insurance cover damage from towing?


Let's say your car is damaged while it's bring towed to be impounded. Because fault is on the towing company, it would be their responsibility to cover the damage. You could also go through your own insurance company, since financed cars are required to have full coverage (liability, collision, and comprehensive). As long as the cause of the damage is due to a covered peril, it could be covered by your insurer even if your car is being impounded.

If you’re ready to get a quote for an impounded car online, enter your zip code below. We can help get you insured today!



Car impounded? Get insurance now!

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Getting your vehicle out of impound: things to consider


After you’ve received your proof of insurance, call the impound lot and ask whether they accept digital proof-of-insurance. Otherwise, bring a hard copy of your new insurance cards. Your new insurance company can probably fax the information over to impound on your behalf, as well. Ensure the insurance documentation includes the following information:


  • Name of insurance company
  • Your personal information
  • VIN of impounded vehicle
  • Effective date (before or on the date you want to reclaim the vehicle)

For most insurance companies, this information will be listed on the ID card, but it's worth double-checking.


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