The Vehicle Financial Responsibility Act of 1957 requires that all motor vehicles registered in the state must be covered by an automobile liability insurance policy and that the insurance must remain in effect with continuous coverage until the registration is terminated.

    The insurance must be provided by a company that is licensed to do business in North Carolina. The law is designed to compensate accident victims for property losses and personal injuries and is designed for your protection.

    North Carolina's compulsory insurance law is strictly enforced. If you cancel your insurance, or coverage is discontinued for any reason, your insurance company will notify the DMV that your policy has lapsed.

    Upon receipt of this notice, the DMV will mail you a Recertification of Liability Insurance Coverage. Failure to respond to this letter providing requested information within the required time may result in the revocation of your license plate, as provided by law.

   To relicense your vehicle after the revocation period, you must pay a $50.00, $100.00, or $150.00 restoration fee depending on how many prior paid lapses you've had within a three year period. You may also have a $50.00 service fee (if a plate pick-up order is issued for the vehicle in question) as well as any appropriate licensing fees. The service fee may be avoided by surrendering your license plate to the DMV during the prescribed period of 10 days following notice of revocation.