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North Carolina Class C Knowledge Test Practice
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Vehicle Safety, Documents & TowingStandalone practice
You plan to stop driving your second car and to cancel its liability insurance. Its North Carolina license plate is still valid. What should you do to avoid a fine or penalty?
Correct answer: Turn in the plate to the DMV before the insurance policy ends
Why
The DMV learns when a liability policy ends. If the plate is still valid at that time, the owner can have to pay a penalty, and the DMV can revoke the plate. If you later want to move a plate to another vehicle of the same type, the owner's name must be the same and the insurance must have been continuous.
Verified against North Carolina Driver Handbook · Insurance and Financial Responsibility · p. 101, 102
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