Don't make the mistake of canceling your vehicle liability insurance coverage before surrendering your license plate to your nearest DMV agency. For example, if you put your vehicle in storage or do not plan to operate it for a long period of time, you must surrender the registration plate to your local license plate agency before canceling your liability insurance coverage.

...Make certain you turn in your license plate first and then cancel your liability insurance coverage or you will incur a $50 penalty.

Therefore, make certain you turn in your license plate first and then cancel your liability insurance coverage. This will help you avoid a civil penalty of $50 for failure to maintain continuous insurance coverage. North Carolina law requires you to have liability coverage in effect on your vehicle during the entire time it is registered and the license plate is in your possession.

For more information regarding:

• Lapse of Insurance Coverage
• or Wrongful Termination of Insurance

view our Vehicle Titling & Registration: Insurance Requirements Section.