Auto Insurance Lapse: North Carolina's Penalties And Fines

Driving without car insurance in North Carolina is considered a Class 1 misdemeanor, which can result in a range of penalties. The state has specific requirements and coverage minimums that drivers need to adhere to regarding auto insurance. If a motorist lets their insurance coverage lapse, their insurance company is required to report it to the Department of Motor Vehicles, and they may face fines, license suspension, and even jail time.

License plate revocation

If you let your auto insurance lapse in North Carolina, your insurance provider is required to notify the North Carolina Department of Motor Vehicles (DMV). The DMV will then send you a liability insurance termination notification, or Form FS-5, giving you 10 days to respond and prove that you have purchased a new insurance policy. Failure to respond within 10 days will result in the revocation of your license plates for 30 days.

To get your license plates back after they have been revoked, you must:

• Provide proof of insurance coverage using Form FS-1, which needs to be sent to the DMV by your insurance company. You can contact the North Carolina DMV Customer Contact Center to ensure they have received the form.
• Provide the license plate number associated with the insurance lapse and the control number on the insurance termination notice.
• Pay a civil penalty fee of $50, $100, or $150, depending on the number of lapses you have had in the past three years.
• Pay a $50 service fee and the appropriate license plate fee.

It is important to note that you must obtain a North Carolina car insurance policy before your license plates can be returned. Maintaining continuous auto insurance coverage will help you avoid these issues in the future.

Fines and penalties

Driving without insurance in North Carolina is considered a Class 1 misdemeanour, which can result in a range of penalties. The state has the seventh-lowest car insurance rates in the country, with an average annual cost of $753. However, it is estimated that 7% of drivers on the road in North Carolina are uninsured, which is lower than the national average of 12%.

If you are caught driving without insurance in North Carolina, you will not receive a minor traffic ticket. Instead, you will be charged with a crime and could face a criminal sentence, civil penalties, and the loss of your license plates for 30 days if you fail to provide proof of new insurance and pay the penalties within 10 days. The penalties for driving without insurance in North Carolina depend on the number of offences.

For a first offence, you may be sentenced to probation for 1 to 45 days and owe a $50 civil penalty and a $50 license reinstatement fee. For a second offence, the punishment could include jail time or probation for 1 to 45 days, with a civil penalty of $100 and a $50 license reinstatement fee. For a third or subsequent offence, the criminal penalty and civil reinstatement fee remain the same, but the civil penalty increases to $150.

In addition to these penalties, you will also need to obtain a new insurance policy and provide proof of coverage to the North Carolina Department of Motor Vehicles (DMV). The DMV will send a liability insurance termination notification, Form FS-5, to the vehicle owner, who has 10 days to respond with proof of insurance and payment of fees. Failure to respond within 10 days will result in a license plate revocation, and a $50 fine to restore the license plate.

It is important to maintain continuous auto insurance coverage in North Carolina to avoid these fines and penalties, as well as the potential consequences of being involved in an accident without insurance coverage.

Criminal record

Driving without insurance in North Carolina is considered a Class 1 misdemeanour, which can result in a criminal record and have long-term consequences on many aspects of your life. If you are caught driving without insurance in North Carolina, you could be charged with a crime and face a criminal sentence, including jail time or probation for up to 45 days, in addition to civil penalties and the loss of your license plates for 30 days. The criminal penalty and sentence will depend on the number of times you have violated the law.

For a first offence, you could be sentenced to probation for 1 to 45 days, in addition to a $50 civil penalty and a $50 license reinstatement fee. A second offence could result in a jail sentence or probation for between 1 and 45 days, with a $100 civil penalty and a $50 license reinstatement fee. For a third or subsequent offence, the criminal penalty and civil reinstatement fee remain the same as for a second offence, but the civil penalty increases to $150.

If you are convicted of driving without insurance in North Carolina, you will have a permanent criminal record. This can impact various areas of your life, including employment, housing, and financial opportunities. A criminal record may show up on background checks conducted by employers, landlords, and financial institutions, potentially disqualifying you from certain jobs, rentals, or loans. It is important to take this into consideration and maintain continuous auto insurance coverage to avoid the consequences of a lapse in insurance.

To reinstate your license after a lapse in insurance, you must provide proof of insurance coverage, typically using Form FS-1, which needs to be sent to the North Carolina Department of Motor Vehicles by your insurance company. You will also need to provide the license plate number associated with the insurance lapse and the control number on the insurance termination notice. In addition, you will be required to pay civil and reinstatement fees, which increase with each subsequent offence.

License reinstatement

If your insurance has lapsed in North Carolina, your insurance provider is required to notify the North Carolina Department of Motor Vehicles (DMV). The DMV will then send a liability insurance termination notification, or Form FS-5, to the vehicle owner. The owner then has 10 days to respond by providing proof of insurance and paying fees online. Failure to respond within 10 days will result in a license plate revocation for 30 days.

To reinstate your license after an insurance lapse, you must:

• Provide proof of insurance coverage using Form FS-1. This form needs to be sent to the DMV by your insurance company. Vehicle owners can contact the North Carolina Department of Motor Vehicles Customer Contact Center to ensure the form has been received.
• Provide the license plate number associated with the insurance lapse and the control number on the insurance termination notice.
• Pay a civil penalty fee ranging from $50 to $150, depending on the number of lapses you have had in the past three years.
• Pay a $50 service fee and the appropriate license plate fee.

It is important to note that you must obtain a North Carolina car insurance policy before your license plates can be returned. Maintaining continuous coverage will help you avoid future issues.

Civil penalties

Driving without car insurance in North Carolina is considered a Class 1 misdemeanour, which can result in a number of penalties. If you are caught driving without insurance, you will not receive a minor traffic ticket. Instead, you will be charged with a crime and given a permanent criminal record.

If your policy has lapsed, you must pay the state a civil penalty fee that ranges from $50 to $150. The amount depends on the number of lapses you have on record. The civil penalty for a first offence is $50, for a second offence it is $100, and for a third or subsequent offence, it is $150. In addition to the civil penalty, there is a $50 license reinstatement fee for all offences.

If you fail to provide proof of new insurance and pay the civil penalties within 10 days, you will lose your license plates for 30 days. After those 30 days, to get your plates back, you must provide proof of insurance coverage, the license plate number associated with the lapse, and the control number on the insurance termination notice. You must also pay a $50 service fee and the appropriate license plate fee.

It is important to note that you need a North Carolina car insurance policy in place before you can get your license plates returned. Maintaining continuous auto insurance coverage will help you avoid these issues in the future.

Frequently asked questions