|What are the liability insurance requirements for
All vehicles registered in North
Carolina must maintain a continuous North Carolina liability
insurance policy throughout the registration period (NC GS20-309);
out-of-state policies are not acceptable.
I received the Notice of Termination of Liability Insurance
letter about a lapse in my insurance, but I no longer own this
vehicle. What should I do?
Your North Carolina license
plate must be turned in to a local license plate agency (request a
receipt). If the vehicle was sold prior to the termination of the
insurance, documentation (bill of sale, repossession letter,
letter of donation, total loss statement, receipt from salvage
yard, lease-return receipt, etc.) must be presented reflecting the
date the vehicle was sold or donated to avoid a civil penalty.
I did not have a lapse of insurance, what should I do?
You will need to contact your insurance company and request that
your carrier to submit a form FS-1 (North Carolina Certificate of
Insurance) to the N.C. Division of Motor Vehicles.
How can I submit an FS-1?
Your insurance company
can submit an FS-1 electronically that will be placed on your
record immediately or by fax to 919-733-6949. A physical copy can
be presented at any local license plate agency.
I no longer live in North Carolina, why am I receiving this
Your North Carolina rated insurance policy was
terminated while there was an active license plate issued to your
vehicle. You must turn in your North Carolina license plate on or
prior to terminating your North Carolina policy. Out-of-state
policies are not acceptable for vehicles registered in North
I did not have a lapse of insurance, I moved out of state
and I maintained continuous coverage
You are required
to maintain continuous liability insurance with an insurance
carrier that is duly authorized to transact business in North
Carolina (NC GS20.279.21). For example, Allstate of South Carolina
is NOT authorized to transact business in North Carolina.
Therefore, your out-of-state policy cannot be accepted.
How much is the insurance penalty? How can I pay my civil
Effective July 1, 2008, civil penalties
assessed for a lapse in liability insurance are based on the
number of prior lapses you have had on your vehicle within three
years of the current lapse. If this is your second lapse, your
civil penalty will be $100. If you have more than two lapses, your
civil penalty will be $150.
Liability insurance civil
penalties can be paid at any local license plate agency, as well
as by mail or online.
Why canít you talk to me about the lapse on my spouseís
The N.C. Division of Motor Vehicles can only
release information to the registered owner, power of attorney or
Why am I being contacted by a collection agency?
If you fail to pay fines owed to the NCDMV, this will result in
the initiation of collection agency action.
Do I have to pay the civil penalty fee for the vehicle
owned by my parent/child who is deceased?
determined based on the termination date of the policy, the date
the registered owner passed, and if the insurance was renewed
after the passing of the registered owner. You may contact a
representative at 919-715-7000 or visit your local license plate
agency for more information.
Why do I have to pay a fine if I am in the military and
stationed (not deployed) out of state?
registered in this the state of North Carolina must maintain a
continuous North Carolina liability insurance policy throughout
the registration period. The only exception is if the deployment
occurs and documentation for a vehicle in single ownership can be
provided showing deployment surrounding the date in question along
with storage documentation (NCGS 20-311(g)).
If my vehicle is stored on private property (home, house
garage etc.) and not drivable, why do I have to pay the fine?
property is not considered a documented storage facility.
Note: To re-license a vehicle after a 30-day revocation has been
satisfied, you must provide proof of insurance coverage Form FS-1
(which you can obtain from your insurance agent), pay a $50
restoration fee and the appropriate license plate fee.