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Do you need to turn in your license plates if you cancel your insurance?

I'm planning on selling my car and want to cancel the insurance on it. Can I do this or do I need to also turn in the license plates?

avatar
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“If you plan to cancel
car insurance
on your vehicle, you should check with your local DMV to confirm if your state has a plate requirement before canceling the policy. About 20 states require you to surrender your plates and they will levy stiff fines if you don’t.
For example, New York charges drivers $8 per day until they receive the plates. Conversely, a state like Illinois lets you keep the plates.
In every state except New Hampshire and Virginia, vehicles registered to operate on the road are required to carry a
minimum amount of car insurance
. If you cancel your insurance, operating your vehicle is illegal, even if you plan to sell it.
You could face fines or a license suspension if you have a lapse in insurance. And if you sell the vehicle and there’s an accident before the change in ownership, you could be responsible for the damage. This could cost a significant amount if the vehicle is uninsured.
While you may want to save money before selling the vehicle, it would be in your best interest to keep insurance on the vehicle until the sale is complete. Even keeping the minimum amount of
liability car insurance
is better than being uninsured.
Since you should keep liability insurance, you may want to lower your costs until you sell the car. Use the
Jerry
app to compare quotes so you can keep your expenses to a minimum while you’re not driving the car.”
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