What Happens If You Don’t Return License Plates?

Last Updated on December 12, 2025

If you’re selling a car, junking it, moving out of state, or canceling insurance, you might need to remove and surrender your license plates. But the rules vary widely by state.

In some states, failing to turn in plates (or properly cancel registration) can lead to serious consequences—like registration suspension, fines, or even a driver’s license suspension. In other states, plates typically stay with the owner and can be transferred to a new vehicle.

One situation where plate rules matter most is when you cancel your liability insurance. Some states treat an “active registration with no insurance” as a problem, and they may require you to surrender plates or cancel registration first to avoid penalties.

Below is what usually happens if you don’t return plates, the most common situations where plate surrender is required, and the safest order of steps to follow—no matter what state you live in.

Key Takeaways

• Whether you must surrender license plates depends on your state and the situation (selling the car, moving, canceling insurance, etc.).
• In some states, canceling liability insurance while plates/registration are still active can trigger penalties—handle plates/registration first when required.
• Plates typically either “stay with the owner” (you remove/transfer them) or “stay with the vehicle” (they go with the sale), and vanity plates can have separate rules.
• Use your state’s official DMV/BMV guidance (start with this directory) and keep a receipt or confirmation after surrendering plates.

What Happens If You Don’t Return License Plates?

Penalties depend on your state, but common consequences include:

• Registration suspension (your plate/registration is no longer valid)
• Driver’s license suspension in some states if the plate remains active without insurance
• Fines or reinstatement fees to restore driving privileges
• Insurance headaches if your state reports a lapse or you’re flagged for uninsured registration

This is why it’s important to follow your state’s official process—especially if you’re dropping liability coverage, moving, or disposing of the vehicle.

The Safest Order: Plates/Registration First, Insurance Second

If you’re ending coverage because you sold the car, scrapped it, or won’t be driving it, the safest approach in many states is:

• Step 1: Remove the plates (unless your state requires plates to stay with the vehicle)
• Step 2: Cancel registration or surrender plates (as required by your state)
• Step 3: Keep proof (receipt/confirmation) that the registration/plates were canceled or surrendered
• Step 4: Then cancel your insurance (or remove the vehicle from the policy)

Why this matters: in certain states, canceling liability insurance while your plate is still active can trigger penalties. Doing plates/registration first helps you avoid an “uninsured but registered” situation.

When You Typically Need to Surrender Plates

Most plate return requirements come up in these situations:

1) You’re canceling liability insurance (and not replacing it)

If you’re canceling liability insurance and you’re not immediately replacing it with another policy, your state may require you to surrender plates or cancel registration first. This is especially important if your state actively enforces insurance/registration matching.

2) You sold, junked, donated, or totaled the vehicle

Some states require you to return plates if you won’t be transferring them to another vehicle. Others allow you to keep the plates (and transfer them later). If your plates stay active in the system and you drop insurance, you could still get penalized—so don’t assume the sale alone “ends everything.”

3) You moved out of state

When you register your vehicle in a new state, your old state may require you to surrender the prior plates (or cancel the old registration) to close the loop and avoid future notices, taxes, or penalties.

Do You Keep Plates or Do Plates Stay with the Car?

States generally fall into one of two systems:

• Plates stay with the owner: You remove them when you sell the car and either transfer them or surrender/cancel them.
• Plates stay with the vehicle: The plates usually go to the buyer with the car, and you report the sale and release liability through your DMV.

Specialty, personalized, and vanity plates often have different rules than standard plates. Even in states where plates normally stay with the vehicle, vanity plates may be transferable to the owner.

How to Find Your State’s Exact Plate Surrender Rules

Because requirements change and vary by state, the most reliable option is to use your state’s official motor vehicle agency guidance. A quick starting point is the U.S. government’s directory of state motor vehicle services:

Find your state motor vehicle agency (official directory)

When you check your state’s DMV/BMV site, look for pages on:

• “Surrender plates” or “turn in plates”
• “Cancel registration”
• “Sold vehicle” / “release of liability” / “notice of sale”
• “Insurance lapse” or “financial responsibility”

Tips to Protect Yourself When Turning in Plates

• Get a receipt or confirmation. Save it—some insurers or DMVs may ask for proof.
• Cancel registration properly. In many states, returning plates is part of canceling registration (but not always).
• Remove toll passes and parking permits. Many are linked to plate numbers.
• Don’t assume “no insurance” is okay if the plate is active. If you’re not driving the car, ask your DMV about canceling registration or using a planned-nonoperation / storage option where available.

FAQs on Returning License Plates

Final Word on the Consequences of Not Returning Your Plates

If you don’t return (or properly cancel) your plates when your state requires it, you could face penalties like registration suspension, fines, or other sanctions—especially if your insurance is canceled while the plate remains active.

To avoid problems, follow your state DMV’s instructions, keep proof you surrendered/canceled the plates or registration, and then cancel your liability insurance only after you’ve handled the registration/plate step the right way.