The Hidden Risks of Keeping Your License Plates After Selling Your Car

You've just sold your trusty old car. As you're cleaning out the glove compartment, you spot the vehicle's license plates. “Maybe I'll keep these as a memento,” you think. But wait—that decision could cost you more than you bargained for in Central New York.

At the Horan insurance agency, we've seen how this seemingly innocent choice to hold onto your car's license plates can spiral into a costly mistake. As an independent agency working with multiple carriers, we've got unique insights into the consequences of keeping your vehicle's plates after a sale.

In this article, we'll dive into why holding onto your car's license plates isn't just risky—it's downright expensive. We'll explore the hidden costs, legal implications, and smart alternatives for Central New York drivers when it comes to handling their vehicle's plates after a sale or trade-in.

By the time you finish reading, you'll know exactly how to handle your car's license plates when selling or trading in your vehicle, saving yourself from potential headaches and hefty fines.

The Temptation to Keep Your Car's License Plates in Central New York

Picture this: You've just sold your car in Baldwinsville. The keys are gone, but those familiar license plates are still in your hands. They've been with you through countless Upstate New York winters and summer road trips. It's tempting to keep them as a souvenir.

But that small decision to hang onto your old vehicle's plates could lead to big problems.

What You’re Risking by Keeping Your Vehicle's Plates

You might think keeping your car's plates is harmless, but the New York State Department of Motor Vehicles (DMV) sees it differently. Here's what you're risking:

Daily Fines That Add Up Fast

For every day you hold onto your vehicle's plates without active insurance, you're looking at fines:

• $8 per day for the first 30 days
• $10 per day from 31 to 60 days
• $12 per day from 61 to 90 days

Let's put that in perspective. If you keep your car's plates for just two months, you're facing a fine of up to $540. That's enough to make anyone in Central New York think twice.

The 91-Day Danger Zone: License Suspension

The fines, however, are only the beginning of potential consequences. After 91 days, the DMV can suspend your license. Another important consideration is that paying the fines after this point doesn't guarantee you'll get your license back, especially if you've had similar lapses in the past 36 months.

For many CNY drivers, this could mean a major disruption to your daily life. Suddenly, that commute to work becomes a lot more complicated.

The Legal Maze: Why New York State Cares About Your Vehicle's Plates

You might wonder why the state cares so much about a couple of metal car plates. It's not about the plates themselves—it's about what they represent.

The Critical Link Between License Plates and Insurance Coverage

In New York, vehicle license plates are tied to insurance coverage. The DMV assumes that if you've got the plates, you've got a car to put them on. And if you've got a car, you need insurance.

This system prevents drivers from canceling their insurance while still having a vehicle on the road. It's a safeguard meant to protect everyone who shares those roads.

The Insurance Reporting Requirement

Here's something many Central New York drivers don't realize: insurance companies are required to report to the DMV when coverage on a vehicle ends. This means the DMV knows exactly when your car becomes uninsured, triggering those daily fines.

The Policy Cancellation Catch-22

Canceling your policy while retaining your vehicle plates is not a viable workaround. Insurance companies in New York can't cancel your policy without proof that you've surrendered your car's plates to the DMV. It's a foolproof system designed to keep uninsured vehicles off the roads.

Navigating Private Car Sales in Central New York

Selling your car privately? Here's what you need to know about vehicle plates and insurance:

Transitional Insurance Coverage During Private Vehicle Sales

If you sell your car but keep the plates, your insurance policy continues to cover the sold car until the new owner registers it. This could leave you paying for coverage on a car you no longer own.

Strategic Insurance Adjustments for Vehicle Sellers

To avoid overpaying, consider:

1. Dropping optional coverages like comprehensive and collision on the sold vehicle
2. Keeping only the minimum required coverage until you transfer the plates to your new car

Just remember to reinstate adequate coverage when you get your new vehicle on the road.

A Potential Loophole (But Proceed with Caution)

If you've only held onto your car's plates for a short time—say, 10 days—there might be a way out of those fines. You could go to the DMV, turn in both your vehicle's plates and your registration for those 10 days. The DMV might waive the fines if you're willing to give up that registration time.

But be warned: this isn't a guaranteed fix, and it's always better to turn in your vehicle's plates promptly when you sell or trade in your car.

Smart Alternatives for Central New York Drivers

So, what should you do when it's time to part with your vehicle? Here are your best options:

1. Turn in Your Vehicle's Plates Promptly: As soon as you sell or trade in your car, head to your local DMV office. Turn in those plates and get an FS-6T form (plate surrender receipt).
2. Notify Your Insurance Agent: Once you've got that receipt, call your agent right away. We can remove the car from your policy, often retroactively to the date you surrendered the plates.
3. Keep Your Policy Active Between Cars: If you're selling one car and buying another, you can keep your vehicle plates and policy active. Just be sure to adjust your coverage options to save money in the interim.

Don't Let Vehicle Plate Problems Derail Your Life in Central New York

Keeping your car's license plates after selling your vehicle might seem like a small thing, but it can have big consequences. From daily fines to potential license suspension, the risks aren't worth it.

At the Horan insurance agency, we've seen how these simple oversights with vehicle plates can cause major headaches for CNY drivers. We're here to help you navigate these tricky situations and keep your driving record clean.

Don't let a pair of metal vehicle plates put your driving privileges at risk. Take action to protect yourself and your wallet.

Click the Get a Quote button below to start a conversation with our knowledgeable team. We'll help you find the right coverage to protect you on Central New York's roads—without any vehicle plate-related pitfalls.