The South Carolina Department of Motor Vehicles (SCDMV) has issued a public reminder to all drivers: do not cancel your vehicle insurance policy until after your license plate has been decommissioned or returned. This message is critical for vehicle owners who plan to sell their car, move out of state, or temporarily stop driving.
Under South Carolina law, maintaining active license plates without valid vehicle insurance is considered a vehicle regulatory violation and can result in daily fines, registration suspension, or even a driver’s license penalty.
Why This Rule Matters for South Carolina Drivers
The South Carolina DMV monitors insurance compliance for every registered vehicle in the state. If an insurance company notifies the DMV that coverage has been canceled while the license plate remains active, a fine of $5 per day is automatically imposed until proof of new insurance or plate return is provided.
This rule applies regardless of whether you are driving the car or not. Even if the vehicle sits unused in your garage, its Vehicle Registration remains active until the license plate/tag is officially surrendered or decommissioned.
Failing to comply can also lead to:
- Driver’s License suspension.
- License Reinstatement fees.
- Vehicle Registration cancellation.
- Future problems renewing your vehicle title or obtaining a commercial driver’s license (CDL).
Step-by-Step: How to Properly Return Your License Plate
To avoid penalties, the South Carolina Department of Motor Vehicles recommends completing a License Plate Return before contacting your insurance company.
Here’s how you can do it online:
- Visit the official South Carolina DMV website: https://scdmvonline.com
- Locate the section titled License Plate Surrender or License Plate Return.
- Enter your license number, vehicle identification number (VIN), and vehicle make.
- Confirm your identity as the vehicle owner.
- Submit the request to decommission your plate.
After completing this process, you’ll receive confirmation that your license plate is inactive. Only then should you cancel your automobile liability policy with your insurance company.
Understanding Vehicle Insurance Requirements in South Carolina
Every driver in South Carolina must maintain an automobile liability policy for each registered vehicle. This policy ensures that the vehicle owner can cover damages or injuries caused in an accident.
The minimum coverage typically includes:
- Bodily Injury Liability: Coverage per person and per accident.
- Property Damage Liability: Compensation for damaged vehicles or property.
If your vehicle insurance lapses or is canceled, your insurer is required to immediately notify the South Carolina Department of Motor Vehicles. The DMV then checks whether your license plates have been turned in. If not, fines begin accumulating automatically.
Consequences of Canceling Insurance Too Early
Drivers who cancel their insurance without surrendering their plates may face more than just fines. Common penalties include:
- Suspended Driver’s License: You will be unable to legally operate any vehicle.
- Revoked Vehicle Registration: Your vehicle will no longer be legally recognized for road use.
- Reinstatement Fees: You may have to pay a fee to restore your registration and driving privileges.
- Points on Your License: Certain violations may add points on your license, impacting your record and insurance premiums.
Additionally, unpaid fines and unpaid tickets related to these violations can block your ability to renew your Driver’s License or register another vehicle in South Carolina.
When Selling or Transferring a Vehicle
If you’ve sold your vehicle or moved to another state, your license plate still needs to be returned to the SCDMV. Selling a vehicle does not automatically end your Vehicle Registration or insurance requirement.
To complete the process properly:
- Fill out a Notice of Vehicle Sold and submit it to the South Carolina DMV.
- Complete a License Plate Surrender form.
- Keep proof of your plate return for your records and your insurance company.
Failure to follow these steps may result in unexpected fines or suspension of your Driver’s License even after moving out of state.
If you move to North Carolina, for example, and obtain a North Carolina Driver’s License, you’ll still be responsible for closing your South Carolina Vehicle Registration. Some drivers use SCDMV Form 447-NC or SCDMV Form 447-CDL (for commercial vehicles) to properly document these transitions.
Important SCDMV Forms and Their Purpose
To simplify compliance, the South Carolina DMV provides several forms for different situations:
- SCDMV Form MV-93: Notice of vehicle sale or transfer.
- SCDMV Form 447-CDL: For drivers seeking to reinstate or modify a Commercial Driver’s License.
- SCDMV Form 452: For out-of-state Driver’s License verification.
- SCDMV Form 416: Used for Vehicle Registration or insurance verification purposes.
- SCDMV Form MV-94: Used to reinstate a suspended Driver’s License or registration due to insurance violations.
These forms help the DMV confirm your compliance, verify insurance coverage, and process reinstatement requests more efficiently.
Vehicle Property Tax and License Renewal
Another key point many drivers overlook is vehicle property tax. Before renewing a Vehicle Registration or license plate, all taxes associated with your vehicle must be paid in full. The South Carolina DMV will not process renewal or reinstatement if there are outstanding vehicle property tax balances or unpaid tickets.
Always confirm your county tax payments before renewing or returning plates to avoid administrative delays.
Out-of-State Drivers and Transfers
Drivers moving from South Carolina to another state, like North Carolina, must surrender their South Carolina license plates and confirm the transfer of insurance and Driver’s License.
Similarly, individuals relocating to South Carolina must register their vehicle and obtain a South Carolina Driver’s License within 45 days of establishing residency. They must also provide proof of insurance issued by an insurance company licensed in the state.
Failure to comply may result in a vehicle regulatory violation and delayed approval of your Vehicle Registration or Driver’s License application.
Common Questions Answered
1. Can I cancel my insurance before returning my plate if I no longer drive the car?
No. You must return the license plate first or decommission it online before canceling coverage.
2. What happens if I forget to return my license plate after selling my car?
You can still return it by mail or online, but daily fines will continue until the License Plate Surrender is recorded.
3. What if my insurance company didn’t notify the DMV?
You are still responsible for compliance. Always confirm your insurance company has properly reported your coverage.
4. Can I face penalties for expired or lost plates?
Yes. Even expired or misplaced license plates must be reported and canceled to prevent penalties.
The Role of the South Carolina Department of Motor Vehicles
The South Carolina Department of Motor Vehicles works with the South Carolina Department of Public Safety to enforce state driving laws, including the South Carolina Hands-Free and Distracted Driving Act and Vehicle Registration compliance.
The DMV’s main goal is to ensure all vehicle owners maintain valid automobile liability policies and follow proper procedures when canceling, transferring, or renewing registrations. By enforcing these rules, the South Carolina DMV helps reduce uninsured driving and strengthens public safety.
About Ted Law
Ted Law Firm, represents individuals and families across South Carolina in matters related to vehicle insurance, license reinstatement, traffic violations, and personal injury. The firm helps clients navigate complex state forms like SCDMV Form 416, SCDMV Form 447-CDL, and SCDMV Form MV-93, ensuring compliance with the South Carolina Department of Motor Vehicles.We serve families across Aiken, Anderson, Charleston, Columbia, Greenville, Myrtle Beach, North Augusta and Orangeburg. With dedication to justice and transparency, Ted Law remains a trusted name for motorists seeking legal clarity and peace of mind.Contact us today for a free consultation
