What Is the FS-1 Form in North Carolina?

Last Updated on December 25, 2025

Drivers in North Carolina sometimes get a letter from the DMV saying their insurance “terminated” or “lapsed.” When that happens, the DMV may require an FS-1 form—a certificate your insurance company submits to prove you have (or had) valid North Carolina liability coverage.

Think of the FS-1 as North Carolina’s way of confirming proof of financial responsibility for a specific vehicle and time period. It’s similar in spirit to the SR-22 used in other states, but the FS-1 is typically tied to a DMV insurance lapse/plate issue (not always a high-risk filing).

If you canceled your policy, switched companies, missed a payment, or had a billing mix-up, your insurer is required to notify the DMV. If the DMV can’t confirm continuous coverage, it can revoke your plate until the issue is cleared—and you may owe civil penalties.

Below is exactly what the FS-1 form is, when you need it, how to get it filed, and how to avoid common mistakes that lead to fees or plate revocation.

Key Takeaways

• An FS-1 is a Certificate of Liability Insurance your insurer submits to the North Carolina DMV to prove coverage for a specific vehicle and time period.
• You’ll most often need an FS-1 after a DMV “liability insurance termination” notice—typically caused by a cancellation, missed payment, switching insurers, or a reporting error.
• If coverage didn’t actually lapse, an FS-1 showing continuous coverage can correct DMV records and clear the notice once processed.
• Since July 1, 2025, North Carolina’s minimum liability limits increased to 50/100/50 for policies new or renewed on/after that date, and continuous coverage is strictly enforced.

What Is the FS-1 Form in North Carolina?

An FS-1 is a Certificate of Liability Insurance your insurance company submits to the North Carolina DMV to show a vehicle had valid liability insurance. It’s not an insurance policy by itself—it’s the DMV-facing proof that coverage exists (or existed) for the dates the DMV is questioning.

In many cases, the DMV requests an FS-1 when it believes there has been a lapse in coverage. If your coverage never actually lapsed, the FS-1 is often the fastest way to correct the DMV’s record and clear the termination notice.

When Do You Need an FS-1?

You usually need an FS-1 after the DMV flags your vehicle for an insurance issue—most commonly because an insurer reported a cancellation or lapse. Typical scenarios include:

• You switched insurance companies and there was a gap (or the DMV thinks there was a gap).
• You missed a payment and the policy canceled for nonpayment.
• You intentionally canceled coverage (even temporarily) without turning in your plate first.
• Your insurer made an error (wrong VIN, wrong effective date, duplicate policy, etc.).
• You got a DMV “liability insurance termination” notice and need to prove continuous coverage.

Important: North Carolina generally gives you a short window to respond to a termination notice. If you don’t respond in time, your plate can be revoked and additional fees can stack up.

FS-1 vs. Insurance Card vs. DL-123

North Carolina uses a few different “proof” documents, and they’re easy to mix up:

• Insurance ID card: The everyday proof you keep in your car. Here’s what it is and what it includes: a card from your insurance company verifying your coverage.
• DL-123: A separate form often used to prove liability insurance for certain DMV/driver license situations.
• FS-1: A certificate your insurer submits to the DMV to confirm liability coverage for a specific vehicle and timeframe—commonly used to clear an insurance lapse/termination record and reinstate plates.

How to Get an FS-1 Filed (Step-by-Step)

The FS-1 is handled through your insurance company, not something you typically download and fill out yourself. Here’s the smoothest process:

1. Buy or confirm active NC liability coverage for the vehicle (make sure the VIN and effective date are correct).
2. Call your insurer and request an FS-1 submission to NCDMV. Tell them you received (or expect) a “liability insurance termination” notice and need proof of coverage sent to the DMV.
3. Ask the insurer to confirm the exact effective date they’re sending. If your DMV notice is about “continuous coverage,” the dates matter.
4. Follow up with the DMV to confirm your lapse has been cleared after the insurer submits the FS-1.

If the DMV’s record is wrong (for example, you never had a gap), an FS-1 showing continuous coverage can clear the issue and remove fines once the DMV updates its system.

What If Your Insurance Really Did Lapse?

If there was an actual lapse, you’ll generally need to do two things:

• Get covered again (so you’re legal going forward), and
• Resolve the DMV penalties/reinstatement tied to the lapse/plate revocation.

That can include civil penalties and restoration fees, depending on how many lapses you’ve had within a set time window. If you’re dealing with a lapse, it’s also worth understanding what happens when car insurance lapses (and how it can affect rates, reinstatement, and future underwriting).

What Happens If You Ignore a North Carolina DMV Insurance Notice?

If the DMV sends a liability insurance termination notice, you typically have a limited number of days to respond. If you don’t, the DMV may revoke your plate, and you can face civil penalties, late fees, and collections. Once your plate is revoked, you may need to relicense the vehicle to drive legally again.

If you cannot clear the issue and your plate is revoked, you may be required to return your license plate (or follow DMV instructions for surrendering it). Driving with a revoked plate can create bigger problems than the original lapse.

How Much Are the DMV Penalties for an Insurance Lapse?

North Carolina uses a civil penalty structure that increases for repeat lapses within a set timeframe, plus additional restoration-related fees. The DMV can also add transaction/processing fees for online payments.

Because fees can change and your situation may involve timing details (continuous coverage vs. true lapse), treat any letter from the DMV as time-sensitive and verify the exact amounts shown on your notice.

Minimum Car Insurance Requirements in North Carolina

North Carolina requires continuous liability insurance from a company licensed in the state. Since July 1, 2025, the minimum liability limits for policies new or renewed on/after that date increased to:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability per accident

North Carolina also requires uninsured/underinsured motorist coverage as part of an auto policy. And while many people still refer to “30/60/25” as the old minimum shorthand, most drivers today will see the updated minimums reflected on active policies written or renewed after the July 2025 change.

If you want a broader overview of how coverage minimums vary across the country, here’s a state-by-state guide: certain insurance requirements to legally drive.

Tips to Avoid Needing an FS-1 Again

Most FS-1 headaches come from preventable timing problems. A few best practices:

• Don’t cancel coverage until you’ve handled the plate. If you’re not going to keep the vehicle registered, take care of the plate/registration steps first.
• If you’re “pausing” driving, talk to your insurer before you drop coverage. In some cases, alternatives exist (like changing coverages or using a storage approach) that avoid a formal lapse—see: paused your car insurance.
• Set payments to autopay and keep your address current so you don’t miss cancellation notices.
• Switching companies? Start the new policy before the old one ends (even one-day gaps can trigger DMV notices).

FAQs on the FS-1 Form in North Carolina

Final Word on the FS-1 Form

To register or title a vehicle in North Carolina, you must show proof of insurance. Most drivers can use standard documentation, like their insurance card.

If the DMV believes your insurance was canceled or lapsed, you may need an FS-1. In most cases, the fix is straightforward: get your insurer to submit the FS-1 to the DMV (and if there was a real lapse, resolve any penalties and reinstatement requirements).