When you sell your car, move states, or retire a vehicle, you need to properly cancel your license plates. According to the Department of Motor Vehicles , failing to cancel plates can result in fines, fees, and continued insurance charges. Here’s what you need to know.
When to Cancel Your Plates
- Selling or trading in your vehicle
- Moving to another state
- Taking a vehicle off the road
- After a total loss accident
- When switching to antique plates
The Process
The National Highway Traffic Safety Administration reports that plate cancellation procedures vary by state, but generally require:
- Return plates to your local DMV
- Complete a plate cancellation form
- Provide proof of insurance cancellation
- Pay any outstanding fees
Important Considerations
Insurance: Contact Vargas & Vargas Insurance before canceling plates. Canceling insurance before plates can result in registration suspension and fines.
Documentation: Keep copies of all cancellation paperwork. Take photos of plates and get receipts when surrendering them.
Timing: Coordinate plate cancellation with vehicle sale or registration in a new state to avoid gaps in coverage.
Common Mistakes
- Throwing away plates instead of returning them
- Canceling insurance before plates
- Forgetting to notify the DMV of address changes
- Assuming a dealership will handle plate cancellation
Special Situations
Total Loss: After an accident, wait for insurance settlement before canceling plates.
Moving: Each state has different requirements. Research new state’s rules before canceling old plates.
Storage: If temporarily storing a vehicle, consider a storage insurance policy instead of canceling plates.
Electronic Tolls: Remove plate from any automatic toll payment systems.
Steps to Success
- Contact your insurance agent
- Gather required documents
- Visit DMV or mail plates
- Keep all receipts
- Confirm cancellation status
Final Tips
Never give plates to a private buyer. Always return them to the DMV yourself. Consider getting a cancellation receipt notarized for extra protection.
Contact Vargas & Vargas Insurance at [phone] for guidance through this process. We’ll help ensure you’re protected during transition periods and avoid common pitfalls.
Remember: Proper plate cancellation protects you from future liability and unnecessary expenses.
