Can a car be repossessed due to no insurance?

Answer 1

If the car is leased or has a lien on it (meaning you have a loan out on it) it CAN be repossessed for letting the insurance lapse on it.
Cars that have liens on them are required to carry full coverage insurance on them by the bank. This is because until you pay off the loan the bank technically owns your car, and they want to protect their investment.
If you are unsure if you have a lien on the car, take a look at the title. If there is a lien, it will show on there. If you are thinking, "How will they know?" here is the answer to that. When your insurance coverage lapses (runs out/expires) and is not renewed, the ins. company notifies the DMV of your state. Under most state laws, you are the given an average of 14 days to resume insurance coverage or are required to surrender you license plate(s). If the 14 day average passes and you have not done either, the bank that has the lien on your car is notified (because the sate DMV has those records). The bak will then attempt to call you and rectify the situation. If they are unsuccessful, they have the car repossessed.