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Liability Insurance

​​​​​​​​​​​​​​​​​​​​​​All vehicles with a valid North Carolina registration are required by state law (G.S. 20-309) to have continuous liability insurance provided by a company licensed to do business in North Carolina. Out-of-state policies are not accepted.

Liability insurance protects drivers and their families against injuries and property damage caused by the negligence of other drivers who might have limited, minimum or no liability insurance.

To avoid fines and fees, an individual should not cancel their insurance until they have surrendered their license plate to the N.C. Division of Motor Vehicles.​

Insurance requirements

Minimum coverage

North Carolina law (G.S. 20-279.21) also requires insurance coverage for uninsured/underinsured motorists, as well as minimum bodily injury and property damage limits. This is required for all policies, even if they exceed the minimum requirements.

Fo​r more information, call the Consumer Services Division of the N.C. Department of Insurance at 855-408-1212. Select Option 3.​​​

​Requirement
​Minimum coverage amount for policies issued or renewed before July 1, 2025
​Minimum coverage amount for policies issued or renewed after July 1, 2025
​Bodily injury (one person)
​$30,000
​$50,000
​Bodily injury (two or more people)
​$60,000
​$100,000
​Property damage
​$25,000
​$50,000

​Penalties

North Carolina's liability insurance law is strictly enforced, and insurance companies are required to notify NCDMV if liability insurance on a vehicle is canceled or coverage lapses for any reason.

NCDMV will send a liability insurance termination notification to the vehicle's registered owner, who has 10 days from the date printed on the notice to respond. Failure to respond may result in the revocation of the vehicle's license plate as well as civil penalties, late fees, interest and collections.​

*Civil penalties assessed for a lapse in liability insurance are based on the number of prior lapses a registered owner has had on their vehicle within three years of the current lapse.

Pay online

NCDMV uses an online service, called PayIt, that allows you to take advantage of completing multiple services in one secure transaction.

​PayIt collects a $3 fee per online transaction​ plus​ a 1.85 percent card processing fee​, These fees are used ​to deliver quality services more efficiently with no upfront costs to NCDMV. The State of North Carolina does not collect or benefit from the transaction or processing​​ fees.

Additionally, a $2 fee is applied to online civil penalty payments.

​​ Pay ​civil penalty (c​itizen)​

​​​​​​ Pay civil penalty (c​ommercial)​

​​ For insurance companies​

Proving liability insurance

Existing coverage

If a vehicle owner's liability insurance coverage has not actually lapsed, they should have their insurance company, which must be licensed to do business in North Carolina, electronically submit a Certificate of Insurance (FS-1) ​​to NCDMV​.

Upon receipt of the FS-1 showi​ng continuous coverage, NCDMV will update its records and all fines will be cleared.

Use the NCDMV ​​Contact U​s​ form​ or call us at 919-715-7000 to confirm that the insurance lapse has been cleared.​

Failure to pay penalties could result in the vehicle’s license plate being revoked and seized by law enforcement. You may also incur additional penalties.

Lapsed coverage

An individual wanting to relicense their vehicle after the revocation period is required to pay a $50, $100 or $150 civil penalty depending on how many prior paid lapses there are within a three-year period. The individual must also pay a $50 restoration fee at the time of their vehicle registration renewal.

An individual who has established a permanent residence outside of North Carolina should not terminate their North Carolina insurance policy until after they have surrendered their North Carolina license plate to NCDMV. Failure to do so could result in a civil penalty.

Lost or ​stolen plates

If the plate has been lost or stolen, you are required to complete a Li​cense Plate Turn In Vertification (MVR-18A)​​ Form​.

Canceling liability insurance

Because state law requires continuous liability insurance on all registered vehicles, a vehicle owner should cancel their insurance only after they have turned in their North Carolina license plate to NCDMV. Canceling insurance before returning the license plate will result in a fine for failure to maintain continuous insurance coverage.

Vehicle Storage

An owner storing a vehicle for an extended period should also return the vehicle's license plate before canceling liability insurance coverage.

Liability insurance pently waiver for vehicles reigstered out-of-state

Any monetary penalty or restoration fee will be waived for any person who meets all the following requirements:

  • The owner must furnish a copy of their out-of-state registration reflecting the vehicle has been registered by the owner in their new state within 30 days of the cancellation or expiration of the owner's North Carolina motor vehicle liability policy. 
  • The owner must submit a copy of their current out-of-state registration card to NCDMV. 
  • The owner must return the valid North Carolina license plate or submit an Application for Replacement Plate and/or Sticker (MVR18A)​​ indicating that the North Carolina registration plate has been lost, stolen, or destroyed.​​​​

Turning in a plate

North Carolina license plates can be returned at any license plate agency​ or by mailing them to:

NCDMV Vehicle Registration Section
Renewal Title & Plate Unit
3148 Mail Service Center
Raleigh, NC 27697-3148

Receipts are provided upon request.

Drop-off service

License plates can also be left in a drop box at Raleigh Central Services, 4121 New Bern Ave., Suite 1​51, Raleigh, NC 27616. Customers who need a receipt, however, should turn in the plates at a license plate agency or by mail.

Lost or stolen plates

Owners needing to cancel a lost or stolen North Carolina license plate must submit a completed License Plate Turn In Verification (MVR-18A) form to any license p​​late agency​ or by mailing it to the address on the form.

Completed forms may also be scanned and submitted online.

​Related forms

5/27/2026 10:34 AM

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