Maybe you need to cancel your auto insurance because you no longer intend to drive. Or, perhaps you intend to sell or transfer ownership of your vehicle. You may be relocating to a new state or planning to store your car for an extended period. You’ll likely need to turn in your license plates in any of these instances.
The rules around surrendering plates and auto insurance can be tricky to navigate. Learn how and when to surrender license plates when you cancel your auto insurance policy.
- The rules for how and when to surrender license plates before or after canceling auto insurance can differ from state to state.
- License plates can typically be surrendered to your local Department of Motor Vehicles, who will give you a receipt or letter of acknowledgment that you should keep.
- Some states permit a temporary surrender of your license plates under certain conditions.
Do I have to surrender my license plates before canceling my insurance?
Terminating car insurance involves more than just telling your insurer you’re done. In certain states and circumstances, you might need to hand over your license plates to the DMV or its equivalent before officially canceling your policy. This rule is in place to keep uninsured vehicles off the road, in line with most states’ insurance laws.
“License plates serve as a visible indicator that a vehicle is registered and, implicitly, that it meets the state’s requirements for minimum insurance coverage,” says Dennis Carrion, a car accident attorney in New York, NY. “When a vehicle owner cancels their insurance without surrendering the license plates, it creates a discrepancy in state records, suggesting that an uninsured vehicle could be operating legally. To mitigate this risk, some states require the surrender of license plates before or simultaneously with the cancellation of the insurance policy.”
Howard Moss, owner of Arizona Auto License Services, agrees that drivers must consider their state’s rules since each state has different ones.
“In Arizona, for instance, you need to surrender your plates if you require a different type of plate, if the owner of the plate is seeking a refund or if the other vehicle is not of the same type as the vehicle for which the plate was provided by the Department of Motor Vehicles,” he says.
In a few states, you do not have to turn in the plates if you take insurance off a vehicle you are not using. However, in these states, you need to complete paperwork with the DMV regarding the planned non-operation of your vehicle, which says that you will not operate the car again until it is insured.
Reasons to turn in your plates
Here are several common reasons why drivers may need to surrender their license plates in many states, according to Carrion:
- If you want or need to cancel your auto insurance policy and don’t plan to replace it immediately.
- If you sell or transfer ownership of your car.
- If you relocate to a new state and register your vehicle in the new state of residence.
- If you plan to store your vehicle or keep it off the road for a prolonged period.
- If your vehicle is deemed totaled, scrapped or otherwise taken out of service permanently.
Where do you turn in your license plates?
The most common place to turn over your license place is at your Department of Motor Vehicles (DMV) office, Motor Vehicle Division (MVD) or its equivalent in your state.
“Some states have their own specific agencies that handle vehicle registrations and titling, which might operate under different names such as the Bureau of Motor Vehicles (BMV) or the Registry of Motor Vehicles (RMV),” Carrion says.
Your state may offer the option to mail your license plates to the state agency. Some states also allow you to surrender your plates at a particular drop-off location or kiosk, often conveniently located at DMV field offices, municipal buildings or police stations.
How long do you have to turn in plates after canceling insurance?
Again, the rules on when and where to surrender license plates will differ from state to state. That means it’s best to contact your local DMV, BMV or RMV for full details and deadlines. Experts recommend turning over your plates relatively soon after canceling auto insurance.
“Sometimes, you are required to turn in your plates at the same time you cancel your insurance, and other times you are allowed a short window – such as 30 days – to do it,” says Samuel Greenes, CEO of BLUE Insurance.
Carrion echoes those thoughts.
“Some states provide a grace period during which you can surrender your plates without facing penalties. Other states obligate immediate surrender upon cancellation of your insurance policy,” he says. “In New York, for example, vehicle owners are required to surrender their license plates before canceling liability insurance coverage to avoid penalties like a registration suspension.”
Can I surrender my plates temporarily?
One of the most common reasons for surrendering plates is if you expect an extended period of non-use of your vehicle. In this instance, maintaining active registration and auto insurance might not make much sense financially.
“Some states offer something called (temporary surrender) if you are storing your car for a long time,” Greenes says. “You might even be allowed to keep your plates, but the car will be officially declared off-road.”
You may also be allowed to file a “deinsurance certificate” if your car is not being used while still being permitted to keep your plates.
“However, with this certificate, your car may not be driven until proof of insurance is obtained and presented to the MVD or authorized third-party provider. Once the proof of insurance is presented, the car may be driven using the plate that was on the vehicle at the time of the deinsurance so long as it has not expired,” Moss says.
How do I properly document the return of my license plates?
When you surrender your plates, many DMVs issue a receipt. This usually includes the license plate number, date of surrender and often a confirmation number related to the transaction. Depending on your state, the receipt may be mailed to you after processing or handed to you in person.
“In cases where plates are mailed to the DMV or surrendered through a dropbox, you could receive a letter of acknowledgment, which serves a similar purpose to a receipt,” Carrion says.
Regardless of whether you receive a letter or receipt, hold onto it.
“This is your proof that you are no longer responsible for that vehicle. It could protect you from fines if, for some reason, there’s a mix-up,” Greenes says.
What happens if I cancel my insurance and don’t return my license plates?
If you cancel your insurance and your vehicle is never driven again but don’t turn in your license plates, there will likely be no consequences. But be forewarned: Many states impose fines and penalties on drivers who don’t maintain the required insurance on registered vehicles. Your vehicle will still be considered registered to you until you transfer ownership of the car and/or surrender your plates.
“Suppose your state discovers that a vehicle is uninsured through periodic checks or at the point of insurance cancellation notification by the insurer. In that case, your state may levy a fine or other penalty against you,” Carrion says.
Your vehicle’s registration may even be suspended if it remains uninsured – effectively making it illegal for your vehicle to be driven on public roads.
“Reinstating the registration typically requires proof of insurance and could involve paying additional fees,” Carrion says. “In some jurisdictions, the issue can escalate to the suspension of your driver’s license or impounding of your vehicle.”
Can I transfer my license plates to another vehicle without canceling my insurance?
The rules on legally transferring plates to another vehicle will vary from state to state.
“In Arizona, a license plate may be transferred to another vehicle with the same owner as long as the vehicle type is the same – such as transferring a plate from a passenger vehicle to another passenger vehicle,” Moss says.
Note that insurance policies are commonly tied to the vehicle – not just the license plate of the driver. Hence, when transferring plates, you typically must update the insurance policy to reflect the new vehicle’s details.
“This ensures that the insurance coverage is accurate and valid, protecting the new vehicle under the existing policy,” Carrion says.
The bottom line
Don’t just assume you can remove the plates from your unused or transferred vehicle. Contact your local Department of Motor Vehicles and inquire about the rules on surrendering license plates and when it must be done before or after canceling auto insurance.
Frequently asked questions
Do you need insurance to get license plates?
Most states mandate that vehicle owners purchase auto insurance coverage before they can register their cars, according to accident attorney Dennis Carrion. Insurance is typically required for vehicle registration, but some states allow exceptions. For instance, California permits vehicle registration without immediate proof of insurance but mandates that insurance information must be provided within 30 days of registration.
Can I keep my license plates if I cancel my car insurance temporarily?
In some states, like Arizona, you may keep your license plates if you temporarily cancel your car insurance. Still, you may not drive an uninsured vehicle under any circumstance, Moss says.
For example, part-time residents and snowbirds will often cancel their insurance when they are not in the state and the car is not being driven.
Are there any penalties for failing to return license plates after canceling insurance?
There likely is no penalty if you cancel your insurance coverage and your car will never be driven again – such as if it is stored on your property for parts. But your vehicle will still be considered registered to you until you transfer ownership of it and/or surrender your plates.
Many states issue fines and penalties for failing to maintain the necessary insurance coverage. In extreme cases, your license may be suspended, and/or your vehicle impounded.
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