Before you cancel your car insurance in North Carolina, turn in your plates
Selling your car, moving out of state or switching carriers? In North Carolina, the order in which you do things matters. Cancel your insurance before you turn in your license plate and you can end up with a fine, even if the car is parked.
The right order
- Turn in your license plate to NCDMV first.
- Then cancel your insurance. NCDMV says that canceling insurance before returning the plate results in a fine for not keeping continuous coverage.
- If you are only switching companies, make sure the new policy starts on or before the day the old one ends, so there is no gap.
What happens if your coverage lapses?
- Insurance companies report cancellations and lapses to NCDMV, and NCDMV mails a notice to the registered owner.
- You have a limited time to respond. Starting October 1, 2026, that window is 30 days (it used to be 10).
- If you don't respond, NCDMV can revoke the plate and charge civil penalties, late fees and interest.
- To get the plate back, the civil penalty is $50, $100 or $150, depending on how many lapses you've had in the last three years, plus a $50 restoration fee.
If you did have insurance
Sometimes the notice is a mistake, for example after changing companies. If your coverage never actually lapsed, your insurance company can send NCDMV an electronic certificate called an FS-1. When NCDMV receives it, it updates its records and clears the fines. Call us and we'll help you ask your carrier for it.
This guide is general information, not legal advice, and every policy is different. A licensed agent can review your situation and your policy with you. Call 1-888-311-4660 or request a quote.
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