The state legislature enacted an additional requirement in May of 2012 that all policies with the FR44 filing may not be canceled during the policy period. If a policyholder had their license reinstated after purchasing a policy and then stopped paying the monthly premium the FR44 insurance company would not be allowed to cancel the policy. They would be “on the hook” for any claims that might occur even though they were not collecting any money from the insured. Paying for the policy up front avoids this potential problem for the company.
United insurance company will still allow a payment plan in limited circumstances and Bristol West will do so for their renewing policies. Sometimes this works out well for customers but most times the lowest priced company is one that has to paid up front. Their ar big discounts for policies when they are paid in full and having to pay this way because of the FR44 does not exclude you from receiving the discount.
Once a driver has reinstated their license insurance will remain in effect without any interruption for at least the current policy period. However many people will not be able make a one time payment for an entire 6 months delaying them from getting insurance. Most drivers who take the risk and get in their car without any would never do so if they could get a policy they could afford through a monthly payment plan.