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Did you know failing to cancel your license plates properly could result in unexpected fines or even continued insurance charges, according to the Department of Motor Vehicles?
Are you selling your car, moving to a new state, or retiring a vehicle? If so, do you know the exact steps to avoid penalties?
This guide will walk you through exactly how to cancel your plates the right way, avoid costly mistakes, and protect yourself from future liability.
We’ll cover when and why you should cancel, step-by-step instructions, common pitfalls, and special situations—so you can navigate this process with confidence.
5 Situations When You MUST Cancel Your License Plates
- Selling or Trading In Your Vehicle – The buyer may use your old plates, leaving you legally responsible.
- Moving to Another State – Some states fine you for keeping old plates active.
- Taking a Vehicle Off the Road – Avoid insurance confusion and potential fraud.
- After a Total Loss Accident – Ensure your insurance company fully processes your claim.
- Switching to Antique or Custom Plates – Prevent duplicate registrations and extra fees.
Step-by-Step: How to Cancel Your License Plates
The National Highway Traffic Safety Administration reports that plate cancellation procedures vary by state, but generally require:
- Return your plates to the DMV. Bring them in person or mail them (check your state’s DMV website for mailing options)
- Complete a plate cancellation form. Some states require this—get the right form online before heading to the DMV.
- Provide proof of insurance cancellation. Your insurer may require documentation before canceling your policy.
- Pay any outstanding fees. Ensure there are no unpaid tickets or fines tied to your plates.
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.
The 4 Biggest Mistakes People Make When Canceling Plates (Avoid These!)
- 🚫 Mistake 1: Throwing Away Plates Instead of Returning Them
- 👉 Solution: Always return plates to your insurance broker to avoid legal liability.
- 🚫 Mistake 2: Canceling Insurance Before Plates
- 👉 Solution: Canceling insurance first can lead to registration suspension and hefty fines. Always cancel plates before insurance.
- 🚫 Mistake 3: Forgetting to Notify the DMV of Address Changes
- 👉 Solution: If the DMV has an outdated address, you might miss important notices about fees or violations.
- 🚫 Mistake 4: Assuming the Dealership Handles Plate Cancellation
- 👉 Solution: Always confirm with your DMV! Some dealerships take care of it, but many don’t—leaving you responsible for fines.
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.
Canceling your license plates the right way ensures you avoid unnecessary fees, legal trouble, and insurance complications.
Many people assume canceling plates is a simple process, only to find themselves hit with fines or unexpected insurance charges later.
Your next step? Before canceling, talk to your insurance provider to ensure you’re making the transition correctly.
At Vargas & Vargas Insurance, we specialize in helping clients navigate DMV and insurance processes smoothly. Call us at [phone number] for expert guidance.
Remember: Proper plate cancellation protects you from future liability and unnecessary expenses.
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