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What happens if you don't return your license plates in NJ?

Published in NJ Vehicle Registration 3 mins read

If you don't return your license plates in New Jersey, there are no direct penalties for not turning them in. While drivers are advised to surrender plates that are no longer in use, this practice is primarily for your own protection and to prevent potential complications.

No Direct Penalties for Unreturned Plates

In New Jersey, license plates serve as a physical indicator that a vehicle has current car insurance. Although the state expects drivers to surrender plates that are no longer associated with an active vehicle or insurance policy, the Motor Vehicle Commission (MVC) does not impose fines or direct penalties solely for failing to return them.

The Importance of Surrendering Plates for Your Protection

Despite the lack of direct penalties, surrendering your old license plates is strongly recommended. This action safeguards you from various potential issues that could arise if your plates remain unaccounted for.

  • Preventing Misuse: If your plates fall into the wrong hands, they could be used illegally on another vehicle. By officially surrendering them, you prevent others from using your identifying plates, which could lead to you being linked to traffic violations or even criminal activities.
  • Avoiding Potential Liability: As long as plates are associated with your name, there's a potential for liability if they are used on an uninsured vehicle or involved in an incident. Surrendering them severs your official connection to those specific plates and the vehicle they were once assigned to.
  • Clear Record Keeping: Returning plates ensures that state records accurately reflect that a vehicle is no longer registered or insured under your name. This prevents any confusion or potential flags related to continuous insurance compliance.
  • Streamlining Future Transactions: Having a clear record of plate surrender can simplify future vehicle registration or insurance processes in New Jersey or other states.

When to Surrender License Plates

It is advisable to surrender your license plates in several common scenarios:

  • Selling Your Vehicle: If you sell your car, especially if the buyer is from out of state or will be registering it under their own name, you should remove and surrender your plates.
  • Moving Out of State: When you move to another state, you will need to register your vehicle there and obtain new plates. Your old New Jersey plates should be surrendered.
  • Vehicle is Totaled or Scrapped: If your car is declared a total loss by an insurance company or is sent to a junkyard, the plates should be returned.
  • Canceling Registration or Insurance: If you decide to cancel your vehicle's registration or insurance and will not be driving it, the plates should be surrendered.

How to Surrender License Plates in NJ

To formally surrender your New Jersey license plates, you typically have a few options:

  • In-Person: You can return your plates to any New Jersey Motor Vehicle Commission (MVC) agency location.
  • By Mail: Plates can also be mailed to the MVC. Be sure to include a cover letter with your name, address, and reason for surrendering the plates.

For the most current and detailed instructions, it is always best to refer to the official New Jersey Motor Vehicle Commission website.