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What’s the Penalty for Not Returning License Plates in NJ?

Dawn Pinnisi

December 12, 2024

Failing to return your old license plates in New Jersey could lead to financial penalties, fines, and complications with your driving record. The penalty for not returning license plates in NJ can include enforcement actions that may impact your finances and legal standing. Whether you’ve sold your car, moved out of state, or canceled your vehicle registration, it’s important to understand New Jersey’s requirements for surrendering license plates to avoid these consequences. At Varcadipane & Pinnisi, P.C. we aim to make legal information straightforward and accessible for Paramus residents. Here’s what you need to know about returning license plates in New Jersey and why compliance matters.

When Is It Necessary to Return a License Plate?

New Jersey law requires you to surrender your license plates under certain circumstances, such as:

  • Canceling Your Vehicle Registration: If your vehicle is no longer in use—whether it’s being retired, scrapped, or taken off the road—you must cancel the registration to remove the car from state records officially. Returning the plates is a necessary part of this process to avoid penalties or liability tied to active plates.
  • Selling Your Vehicle: When transferring ownership of your car, New Jersey law requires you to either surrender the plates to the MVC or reassign them to another vehicle you own. Failing to do so could leave the plates linked to your name, exposing you to potential legal issues if misused.
  • Relocating Out of State: Moving to another state requires you to register your vehicle in your new state of residence. At the same time, you must surrender your New Jersey plates to the MVC to avoid penalties or confusion in state databases, which might show your registration as active.

Failing to complete this step could leave your plates in the system, exposing you to fraudulent misuse or fines.

To make this process easier, you can return your plates in person at an MVC location or mail them to the New Jersey MVC headquarters. Be sure to request a receipt to prove you’ve completed the surrender.

What’s the Penalty for Not Returning License Plates in NJ?

Not returning your license plates in New Jersey could result in fines, fees, and possible suspension of your driving privileges. According to N.J. Stat. § 39:8-9, individuals who fail to comply with MVC regulations, including returning plates, may face enforcement actions such as monetary penalties.

Moreover, not surrendering plates could lead to complications if your canceled vehicle registration or insurance lapses without proper documentation. Unused license plates may remain linked to your name in state databases, triggering unexpected fines or liability if the plates are misused. For instance, if someone else were to use your old plates fraudulently, you could be held accountable until you can prove they were surrendered.

The best way to avoid penalties is to act quickly after selling your vehicle, canceling insurance, or moving to another state. Return the plates as soon as possible, and keep your receipt for at least a year for your records.

Does NJ Accept Out-of-State License Plates?

If you’re moving to New Jersey and bringing your vehicle, you must register your car with the New Jersey MVC and surrender your out-of-state plates. This is required even if your old plates are still valid in your previous state of residence. As the N.J. Stat. § 39:3-48 outlines, all vehicles operating in New Jersey must display a valid NJ registration and plates.

When switching from out-of-state plates to New Jersey’s, it’s a good idea to consult your previous state’s DMV for return instructions. Many states also require plates to be surrendered to prevent penalties.

What Can Happen If I Cancel My Car Insurance Without Returning My Plates?

Canceling your car insurance without first surrendering your license plates can create serious legal issues in New Jersey. Since plates remain tied to your vehicle registration, letting your insurance lapse without returning the plates may result in your registration being suspended. This could lead to additional penalties, such as fines, late fees, or court appearances.

For instance, if your plates are still active but uninsured, you may receive notices from the New Jersey MVC about lapses in coverage. This is why it’s crucial to follow the proper sequence:

  1. Return your plates to the MVC
  2. Cancel your registration with proof of plate surrender
  3. Then, cancel your insurance

This order ensures you’re not at risk of penalties for failing to maintain insurance on an “active” vehicle registration.

How We Can Help?

At Varcadipane & Pinnisi, P.C. we simplify managing New Jersey’s motor vehicle laws. If you’re facing penalties for not returning your license plates or need legal guidance about a car accident in NJ, our experienced Paramus car attorneys are here to help. Call us at (201) 588-1500 or contact us today for a free consultation.

Dawn M. Pinnisi

Dawn M. Pinnisi is a distinguished attorney with a track record of excellence in advocating for victims of injury and negligence. Dawn is a Founding Partner of the Firm, a member of the Million Dollar Advocates Forum, and has been awarded by the National Trial Lawyers.

University: J.D. Brooklyn Law School

Bar Number: 33771999

Locations: New Jersey and New York.

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This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Founding Partners, Jeffrey W. Varcadipane & Dawn M. Pinnisi, with more than 40 years of combined legal experience as personal injury attorneys.

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