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Frequently Asked Questions
What are the liability insurance requirements for North Carolina?
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 letter?
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 Carolina.

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 penalty?
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 vehicle?
The N.C. Division of Motor Vehicles can only release information to the registered owner, power of attorney or attorney.

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?
This is 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?
Vehicles 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?
Private 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.

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