Do not cancel your liability insurance coverage before you turn your plate in or you will incur a penalty.
North Carolina law requires you to have liability coverage in effect on your vehicle during the entire time it is registered and the license plate is in your possession.
If you plan on putting the vehicle in storage or do not plan to operate it for an extended period of time, you must surrender the license plate to your local license plate office before canceling your liability insurance coverage.
Cancelling your liability insurance before returning the license plate incurs a civil penalty for failure to maintain continuous insurance coverage.