New York has laws regarding both driving without insurance and without a license. Per section 509 of the New York Vehicle and Traffic Code (VTC), to drive a vehicle in legally in New York State the operator must have a valid driver's license.

A violation of section 509 of the VTC is punishable by a fine of not less than $75 nor more than $300, or by imprisonment for not more than 15 days, or by both fine and jail time. If the person is cited for not renewing a license and it was valid within 60 days, the fine shall not be more than $40. A ticket for not having a valid license with you is called unlicensed operation in NYS.

If instead a person was found to be driving with a suspended or revoked license, this is a criminal violation and there are mandatory fines ranging from $200 up to $5000. The driver may also face mandatory imprisonment or probation, and seizure and possible forfeiture of the vehicle being driving at the time of the citation.

VTC 315 discusses financial responsibility. Here it states that when insurance with respect to any motor vehicle is terminated by cancellation or failure to renew the owner shall surrender forthwith his registration certificate and number plates of the vehicle to the commissioner unless proof of financial security otherwise is maintained.

NYS law requires you to surrender your vehicle plates to the NYSDMV before there is a lapse in your liability insurance. If you do not surrender your vehicle plates, the DMV will suspend your registration and driver's license. So if you are no longer keeping insurance on your vehicle you need to turn in your plates before other penalties are placed upon you and your license.