Five New Motor Vehicle Laws Take Effect in North Carolina on July 1
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Five New Motor Vehicle Laws Take Effect in North Carolina on July 1

The new provisions, passed by the NC General Assembly, affect either vehicles or drivers in the state

June 28, 2016

Beginning on Friday, July 1, 2016, five new motor vehicle provisions will become law in North Carolina.

The new laws include:

Liability insurance for mopeds: North Carolina moped owners will now be required to carry liability insurance. Moped owners must provide the North Carolina Division of Motor Vehicles (NCDMV) proof of liability insurance coverage from their insurance carrier. Once the insurance information is received, the Division will issue an updated registration card reflecting coverage. Owners can provide the information to their local license plate agency or their insurance company can submit it to the NCDMV. If a moped owner fails to provide proof of insurance, their license plate will be revoked. All registered moped owners in NC should have received two letters from the NCDMV since April alerting them about the new requirement.

Vehicle registration late fees: North Carolina vehicle owners will now have to pay a late fee if their vehicle registration renewal is not paid by the expiration date. The late fees will be added beginning the first day of the month following the expiration date and total $15 if the registration has been expired for less than one month, and $20 if the registration has been expired for one month or greater, but less than two months. If the registration has been expired for two months or more, the late fee will be $25. The new late fees apply to private passenger vehicles and to apportioned truck fleets registered under the International Registration Plan. Even though citizens can operate their vehicle up to 15 days after their registration has expired without being ticketed, they will be fined the late fee beginning the first day of the month after the registration expires.

Tags for loaner vehicles: Franchise vehicle dealers will have a third option for providing a tag for loaner vehicles used while an owner's vehicle is being serviced by the dealer. The new loaner plates are available to franchise dealers at a cost of $200 each. There is no limit to the number of loaner plates available to a franchise dealer. The plates are issued only through the Dealer Unit at the NCDMV's Raleigh Headquarters. Other options available for use by dealers during vehicle servicing are the 96-hour permit and the U-Drive-It plate. The new loaner plates are optional until December 31, 2018, when they will become mandatory for all franchise dealers.

Disability/handicapped placard renewal: A person who has been certified by a physician as being totally and permanently disabled will NOT be required to be medically recertified every five years. The disability placard will still need to be renewed every five years without a physician's recertification. Since May 23, 2016, new North Carolina disability parking placards carry two expiration stickers affixed to the placards when they are issued. Temporary placards that are issued for a six-month period, and permanent placards that are issued for five years, are available from license plate agencies across the state.

Additionally, a disability determination issued by the U.S. Department of Veterans Affairs may be used for medical certification and recertification requirements for handicapped parking placards.

Electronic lien system for financed vehicles: All individuals and lienholders who are normally engaged in financing motor vehicles, and who conduct at least five transactions annually, will now be required to use the electronic lien system to record information about the security interest in a vehicle. If a lienholder records three liens manually after this date, they will receive a notification letter from the NCDMV advising that when five liens have been recorded, title services will be denied until they comply with the electronic requirements. A hold letter will be mailed to lienholders when five recorded liens are on file, specifying the vehicles affected, and advising that no future title services will be processed until they become an electronic lienholder.