Insurance: Drive Your Vehicle With Confidence

If you're not planning on driving your car, you may want to consider filing for a Planned Non-Operation (PNO) status. This option is available in certain states, such as California, and allows you to save money on registration and insurance fees. By filing for PNO status, you are agreeing not to drive, tow, store or park your vehicle on public roads or highways for the entire registration year. The process typically involves submitting the necessary paperwork and paying a small fee, which is much lower than regular registration fees. However, it's important to note that PNO status comes with certain restrictions, such as not being able to park your vehicle on public streets or roads. Additionally, if you do decide to drive your vehicle while it has PNO status, you will be required to pay the full registration fees and penalties for that year.

If you have a lien holder on your vehicle, you must have state minimum liability coverage

A lienholder is typically a bank or financial institution that finances the original purchase of a vehicle. They hold a lien on your car until your loan is paid in full, and are considered the vehicle's legal owner during this time. As the lienholder has a financial stake in the vehicle, they will require you to carry specific auto insurance coverages to protect their investment.

If you have a lien holder on your vehicle, you must meet certain conditions set by the lienholder, including purchasing at least the state minimum liability coverage. This is because the lienholder is the legal owner of the vehicle and can require you to carry certain types of insurance to protect their investment. Comprehensive and collision coverage are often mandated by lienholders to safeguard against damage to the vehicle. Additionally, the lienholder may determine your car insurance deductible amount and how much liability coverage you need to have.

It is important to list the lienholder as an "additional insured" on your insurance policy. This ensures that they are notified of any insurance claims related to damage to the vehicle and are protected financially. Failure to meet the lienholder's insurance requirements can result in serious consequences, such as late fees or legal action.

Once your loan is paid off in full, you are no longer required to carry the specific coverages mandated by the lienholder. However, it is important to maintain at least the state minimum liability coverage to drive legally and protect yourself financially in the event of an accident.

If you don't plan to drive your car, you can apply for non-operational status

In California, this is called a Planned Non-Operation (PNO) status. You can file for PNO if you won't be driving for an entire year. The fee for filing is $23, and it can be done up to 60 days before your vehicle registration's expiration date without penalty, or up to 90 days after the registration expiration date with a late penalty.

With a PNO, you don't need to insure your car as a stored vehicle isn't required to have auto liability insurance. However, you must keep your car off public roads and highways. If you use your non-operational vehicle on public roads, you will have to pay full registration fees and penalties for that year.

In Connecticut, if you don't want to pay insurance on a car that is inoperable or being stored, you must turn in your plates to the DMV and request that they be put on "hold". At this point, you can drop the insurance coverage.

In South Carolina, if your liability insurance is canceled or expired, you must return your vehicle's license plate and registration to the DMV or reinstate your coverage. If you don't, your driver's license and vehicle plate will be suspended, and you will be subject to a reinstatement fee.

Remember to always check the specific laws and requirements of your state when it comes to registering and insuring non-operational vehicles.

If you get a ticket while your vehicle is in non-op status, you will nullify your PNO-status and registration fees will be due

If you get a ticket while your vehicle is in non-op status, you will nullify your PNO-status and registration fees will become due. This is because, in California, a planned non-operation (PNO) vehicle is not to be driven, towed, stored, or parked on public roads or highways for the entire registration year. If your vehicle is in a public place where it may be subject to citation, then full registration fees and penalties for that year become due.

The California Department of Motor Vehicles (DMV) defines a PNO as:

> "Planned non-operation (PNO) means that the vehicle will not be driven, towed, stored, or parked on public roads or highways for the entire registration year."

The DMV will accept PNO filings up to 60 days before registration expires or up to 90 days after registration expires. The PNO fee is $23, and it is a one-time payment. However, if you miss the window to pay the PNO fee, you may have to pay penalties and another year's registration for a vehicle you're not using.

To avoid this, keep your car off public streets and parked on your driveway or inside your garage. If you do get a ticket, you will have to pay all registration fees.

If your liability insurance is cancelled or expired, you must return your vehicle's license plate and registration to the DMV

In most states, if your car is registered, you are required by law to have auto insurance. The specific requirements vary from state to state, so it is important to check with your local DMV to understand the rules that apply to you. In some states, you may be able to obtain special status for a vehicle that is not going to be driven, which would exempt you from needing insurance. For example, in California, you can file for a Planned Non-Operation (PNO) status if you don't intend to drive your car for a whole year.

However, if your liability insurance is cancelled or expired, you must return your vehicle's license plate and registration to the DMV. Failure to do so can result in significant fines and penalties. For example, in South Carolina, if you don't return your license plate and registration, your driver's license and vehicle plate will be suspended, and you will be subject to a reinstatement fee of $200, as well as a $5 penalty for each day the vehicle was uninsured.

If you intend to cancel your vehicle liability insurance, it is important to first cancel your registration and surrender your license plates. This can usually be done by mailing them to the DMV or in person at a DMV office. Keeping your vehicle registered and insured is recommended if you will only be going without insurance for a short period of time.

You must notify the DMV before you cancel your insurance

In California, if you are not planning to operate your currently registered vehicle and it will not be parked on a California roadway, you can submit an Affidavit of Non-Use (ANU) form to the DMV. This will allow you to cancel your vehicle's insurance policy without penalty. However, if your vehicle is still not in use when registration renewal fees are due, you must pay the fees or request Planned Nonoperation (PNO) status.

To prevent a vehicle registration suspension, you must notify the DMV before you cancel your insurance. If you do not notify the DMV, your registration and driver's license may be suspended, and you may be required to surrender your vehicle plates.

In California, insurance companies are required by law to electronically report vehicle insurance information to the DMV. This allows the DMV to monitor insurance coverage and take appropriate actions, such as vehicle suspension, as required by law. Law enforcement and court personnel also have electronic access to insurance status on DMV records.

If you have received a letter from the DMV stating that your vehicle registration will be suspended or has already been suspended, you must submit your insurance information and/or reinstatement fee. This can be done online, at a DMV kiosk, by mail, or by telephone.

It is important to note that the requirements and procedures for vehicle insurance and registration may vary by state. Always check with your state's Department of Motor Vehicles to determine the specific laws and regulations that apply in your situation.

Frequently asked questions