What Is a Reinstatement Fee?

A “reinstatement fee” is a charge that may be required before a suspended driver's license or a lapsed auto insurance policy can be reinstated. The type of fee, the amount, and when it applies vary depending on the reason for the suspension or lapse, as well as state laws or an insurer's policy. Understanding what a reinstatement fee is can help drivers prepare for the steps involved in restoring their driving privileges or car insurance coverage.

Reinstatement fees for a suspended license

If a driver's license has been suspended, the state may require a driver’s license reinstatement fee before driving privileges can be restored. This fee is separate from court fines, traffic tickets, or other legal requirements that may also apply.

For example, according to the Texas Department of Public Safety, reinstatement fees in Texas depend on the type of enforcement action. For example, departmental and safety responsibility suspensions require a $100 reinstatement fee, while administrative license revocation suspensions require a $125 fee. Drivers with multiple enforcement actions may owe more than one fee.

If you are wondering how much a reinstatement fee is, the answer depends on your state and the reason for the suspension. Because requirements differ across the United States, drivers should verify the current license restoration fee and any additional requirements with the motor vehicle agency in the state that issued their license.

Reinstatement fees for a lapsed insurance policy

When an auto insurance policy lapses or is canceled, some insurance companies may charge an insurance reinstatement fee before restoring coverage. This fee is typically separate from any past-due premium that may also be owed.

Not every insurer charges an insurance reinstatement fee, and the amount varies based on the company's guidelines and the terms of the policy. Contacting the insurer directly is often the best way to confirm whether a fee applies and what is required to reinstate coverage.

What else may be required for reinstatement?

Paying a reinstatement fee after license suspension may be only one part of the reinstatement process. Depending on the reason for the suspension or insurance lapse, drivers may also need to:

  • File an SR-22 certificate
  • Complete a court-ordered or state-required program
  • Provide proof of valid auto insurance
  • Meet any additional state or insurer requirements

Drivers should confirm all reinstatement requirements with their state's motor vehicle department and their insurance company before returning to the road.

To learn more about what may happen after an insurance lapse, visit the Infinity Insurance Agency, Inc. (IIA) Knowledge Center article on lapsed car insurance policies.  

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