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I was wondering if it was legal to let my insurance run out if I returned my license plates, and did not drive my motorcycle until I had it re-insured. The insurance payments are killing me so I want to leave it uninsured, and not ride it until I get a stable job and graduate from college. I am in Nevada if its a question of a state's legal policies. Thanks much for your help.

The State of Nevada requires that all registered motor vehicles be covered by liability insurance. You must obtain insurance from a Nevada Licensed Insurance Carrier and maintain the coverage for the entire time the vehicle is registered in Nevada.

The NV Department of Motor Vehicles states that if you cancel your insurance on your motor vehicle, it is extremely important for you to do the following:

  • If you cancel your insurance because your vehicle is not in use, you must cancel your Nevada registration.
  • If you sell your vehicle, you must remove the license plates, then cancel your Nevada registration. The license plates do not stay on the vehicle.
  • You will receive credit toward registration of another vehicle for the unused portion of the canceled registration. You may qualify for a refund under certain limited circumstances.
  • If you have personalized plates and wish to keep them, you may do so by bringing the rear plate to the DMV and scraping off the decal in person.

Nevada does not have a planned non-operation status or any requirement for a seller to notify the DMV of a vehicle sale. These issues are addressed by surrendering your license plates and canceling the registration. You must surrender the plates if:

  • You have dropped the vehicle liability insurance for any reason.
  • You have sold or otherwise disposed of a vehicle and will not use the plates on another vehicle within 30 days.
  • Your vehicle will be stored or under repairs for an extended period and you do not wish to keep the liability insurance or registration in effect.

To cancel your registration on your motorcycle bring the plate(s) and decal to any DMV Full Service or Express Office and surrender them to a technician inside the office. It is suggested that you bring the rear plate to the DMV and scrape off the decal in person.

Another option is to mail the plates, decal, and a signed letter requesting cancellation. You may wish to send the plates via certified mail with return signature required.

Make sure that you cancel your registration and turn in your motorcycle license plates before canceling your insurance so you are not found by Nevada to be an uninsured motorist. According to the NV DMV motorists who have dropped their insurance are asked first to verify their coverage. If there is no response or the coverage cannot be verified, the DMV suspends the registration and notifies the owner through a certified letter.

Uninsured motorists are required to provide current proof of insurance and pay a $250 reinstatement fee to reinstate a suspended registration. The fee can be reduced to $50 if the motorist has sufficient proof that the vehicle was not operated during the period insurance coverage was not in effect.

Do not drive while the registration is canceled and you do not have insurance on your vehicle. Nevada law enforcement officers are required to remove the license plates from any vehicle on which the registration has been suspended. They may also impound the vehicle itself.

The NV DMV states that if the owner of the vehicle declares it dormant due to mechanical or seasonal circumstances during the period in question, the owner must sign a Dormant Vehicle Affidavit and present documentation to verify the status. The reinstatement requirements will then include presenting current proof of insurance and a payment of $50.00.

Once your registration is canceled and your license plates are turned into the Nevada DMV then it should be okay to cancel your insurance on your motorcycle. Do not just let insurance cancel for non-payment though or when you do want to register your vehicle once again and obtain insurance you may have problems due to letting insurance cancel for not paying on time instead of canceling your policy properly.

You should check with the NV DMV as to where you should store or park your motorcycle while it is unregistered and uninsured so that you do not get ticketed by law enforcement.

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This car insurance question was asked on 2/1/2008
This auto insurance answer was last updated on 2/11/2008
Michael A requested this car insurance solution.
Rated 0 out of 10 based on 0 votes.
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