The Insurance Suspension
G.S. 20-313 — a Class 3 misdemeanor, and G.S. 20-311 — a notice of lapse, a penalty, and a revoked registration
The misdemeanor. An owner of a motor vehicle registered or required to be registered in the state who operates it, or permits it to be operated, without the required financial responsibility in full force and effect is guilty of a Class 3 misdemeanor.
The records as evidence. Evidence that the owner operated or permitted operation of the vehicle, coupled with Division records showing no financial responsibility in the manner the owner certified, is prima facie evidence of the offense.
The notice of lapse. When the Division receives evidence that an owner does not have financial responsibility, it notifies the owner, who must respond within 10 days of the date the notice was sent, explaining how the duty of continuous coverage was met.
| Lapses in the previous three years | Penalty |
|---|---|
| Lapses in the previous three yearsNone | Penalty$50.00 |
| Lapses in the previous three yearsOne | Penalty$100.00 |
| Lapses in the previous three yearsTwo or More | Penalty$150.00 |
When the registration is revoked. The registration is revoked if the owner still has no coverage, if the vehicle was in an accident during the lapse, if the owner knowingly operated or allowed operation during it, or if the owner does not respond in time. A revocation for having no coverage, or for not responding, is indefinite and ends when the owner obtains coverage or transfers the vehicle to an owner who has it, or, after a failure to respond, establishes that there was no lapse. One for an accident or knowing operation is 30 days.
Getting the registration back. At the end of the revocation, an owner with coverage may apply to register the vehicle with proof of current financial responsibility, any penalty assessed, a restoration fee of fifty dollars ($50.00), and the plate fee.
How much coverage the law requires, and anything more that reinstatement takes, are set out in other sections that are not on this page. Whether a particular charge applies is a question for a licensed North Carolina attorney.
Sources for this section (2)
- G.S. 20-313 — Operating without financial responsibility
- G.S. 20-311 — Notice of a lapse, the penalty table, and registration revocation
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed North Carolina attorney.