diff --git a/packages/CarSystemUI/res/layout/car_left_navigation_bar.xml b/packages/CarSystemUI/res/layout/car_left_navigation_bar.xml
index d0916b518c923..a8c70989253e7 100644
--- a/packages/CarSystemUI/res/layout/car_left_navigation_bar.xml
+++ b/packages/CarSystemUI/res/layout/car_left_navigation_bar.xml
@@ -33,7 +33,6 @@
         android:gravity="top"
         android:paddingTop="30dp"
         android:layout_weight="1"
-        android:background="@drawable/system_bar_background"
         android:animateLayoutChanges="true">
 
         <com.android.systemui.car.navigationbar.CarNavigationButton
diff --git a/packages/CarSystemUI/res/layout/car_left_navigation_bar_unprovisioned.xml b/packages/CarSystemUI/res/layout/car_left_navigation_bar_unprovisioned.xml
index de5a15068a5cc..9e6dd113eeba4 100644
--- a/packages/CarSystemUI/res/layout/car_left_navigation_bar_unprovisioned.xml
+++ b/packages/CarSystemUI/res/layout/car_left_navigation_bar_unprovisioned.xml
@@ -33,7 +33,6 @@
         android:gravity="top"
         android:paddingTop="30dp"
         android:layout_weight="1"
-        android:background="@drawable/system_bar_background"
         android:animateLayoutChanges="true">
 
         <com.android.systemui.car.navigationbar.CarNavigationButton
diff --git a/packages/CarSystemUI/res/layout/car_right_navigation_bar.xml b/packages/CarSystemUI/res/layout/car_right_navigation_bar.xml
index d386ce3300e6d..fd75570e759c8 100644
--- a/packages/CarSystemUI/res/layout/car_right_navigation_bar.xml
+++ b/packages/CarSystemUI/res/layout/car_right_navigation_bar.xml
@@ -36,7 +36,6 @@
         android:gravity="top"
         android:paddingTop="30dp"
         android:layout_weight="1"
-        android:background="@drawable/system_bar_background"
         android:animateLayoutChanges="true">
 
         <com.android.systemui.car.navigationbar.CarNavigationButton
diff --git a/packages/CarSystemUI/res/layout/car_right_navigation_bar_unprovisioned.xml b/packages/CarSystemUI/res/layout/car_right_navigation_bar_unprovisioned.xml
index de5a15068a5cc..9e6dd113eeba4 100644
--- a/packages/CarSystemUI/res/layout/car_right_navigation_bar_unprovisioned.xml
+++ b/packages/CarSystemUI/res/layout/car_right_navigation_bar_unprovisioned.xml
@@ -33,7 +33,6 @@
         android:gravity="top"
         android:paddingTop="30dp"
         android:layout_weight="1"
-        android:background="@drawable/system_bar_background"
         android:animateLayoutChanges="true">
 
         <com.android.systemui.car.navigationbar.CarNavigationButton
diff --git a/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBar.java b/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBar.java
index 2b5cab783916e..e2a4246cb1c49 100644
--- a/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBar.java
+++ b/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBar.java
@@ -19,7 +19,6 @@ package com.android.systemui.car.navigationbar;
 import static android.view.InsetsState.ITYPE_NAVIGATION_BAR;
 import static android.view.InsetsState.ITYPE_STATUS_BAR;
 import static android.view.InsetsState.containsType;
-import static android.view.WindowManager.LayoutParams.LAYOUT_IN_DISPLAY_CUTOUT_MODE_ALWAYS;
 
 import static com.android.systemui.statusbar.phone.BarTransitions.MODE_SEMI_TRANSPARENT;
 import static com.android.systemui.statusbar.phone.BarTransitions.MODE_TRANSPARENT;
@@ -28,7 +27,6 @@ import android.content.Context;
 import android.content.res.Resources;
 import android.graphics.PixelFormat;
 import android.inputmethodservice.InputMethodService;
-import android.os.Binder;
 import android.os.Handler;
 import android.os.IBinder;
 import android.os.RemoteException;
@@ -349,33 +347,38 @@ public class CarNavigationBar extends SystemUI implements CommandQueue.Callbacks
             WindowManager.LayoutParams lp = new WindowManager.LayoutParams(
                     ViewGroup.LayoutParams.MATCH_PARENT,
                     height,
-                    WindowManager.LayoutParams.TYPE_STATUS_BAR,
+                    WindowManager.LayoutParams.TYPE_STATUS_BAR_ADDITIONAL,
                     WindowManager.LayoutParams.FLAG_NOT_FOCUSABLE
-                            | WindowManager.LayoutParams.FLAG_SPLIT_TOUCH
-                            | WindowManager.LayoutParams.FLAG_DRAWS_SYSTEM_BAR_BACKGROUNDS,
+                            | WindowManager.LayoutParams.FLAG_NOT_TOUCH_MODAL
+                            | WindowManager.LayoutParams.FLAG_WATCH_OUTSIDE_TOUCH
+                            | WindowManager.LayoutParams.FLAG_SPLIT_TOUCH,
                     PixelFormat.TRANSLUCENT);
-            lp.token = new Binder();
-            lp.gravity = Gravity.TOP;
-            lp.setFitInsetsTypes(0 /* types */);
             lp.setTitle("TopCarNavigationBar");
-            lp.packageName = mContext.getPackageName();
-            lp.layoutInDisplayCutoutMode = LAYOUT_IN_DISPLAY_CUTOUT_MODE_ALWAYS;
+            lp.providesInsetsTypes = new int[]{ITYPE_STATUS_BAR};
+            lp.setFitInsetsTypes(0);
+            lp.windowAnimations = 0;
+            lp.gravity = Gravity.TOP;
             mWindowManager.addView(mTopNavigationBarWindow, lp);
         }
 
         if (mBottomNavigationBarWindow != null && !mBottomNavBarVisible) {
             mBottomNavBarVisible = true;
+            int height = mResources.getDimensionPixelSize(
+                    com.android.internal.R.dimen.navigation_bar_height);
 
             WindowManager.LayoutParams lp = new WindowManager.LayoutParams(
-                    ViewGroup.LayoutParams.MATCH_PARENT, ViewGroup.LayoutParams.MATCH_PARENT,
-                    WindowManager.LayoutParams.TYPE_NAVIGATION_BAR,
+                    ViewGroup.LayoutParams.MATCH_PARENT,
+                    height,
+                    WindowManager.LayoutParams.TYPE_NAVIGATION_BAR_PANEL,
                     WindowManager.LayoutParams.FLAG_NOT_FOCUSABLE
                             | WindowManager.LayoutParams.FLAG_NOT_TOUCH_MODAL
                             | WindowManager.LayoutParams.FLAG_WATCH_OUTSIDE_TOUCH
                             | WindowManager.LayoutParams.FLAG_SPLIT_TOUCH,
                     PixelFormat.TRANSLUCENT);
             lp.setTitle("BottomCarNavigationBar");
+            lp.providesInsetsTypes = new int[]{ITYPE_NAVIGATION_BAR};
             lp.windowAnimations = 0;
+            lp.gravity = Gravity.BOTTOM;
             mWindowManager.addView(mBottomNavigationBarWindow, lp);
         }
 
@@ -392,11 +395,10 @@ public class CarNavigationBar extends SystemUI implements CommandQueue.Callbacks
                     PixelFormat.TRANSLUCENT);
             leftlp.setTitle("LeftCarNavigationBar");
             leftlp.windowAnimations = 0;
-            leftlp.privateFlags |= WindowManager.LayoutParams.PRIVATE_FLAG_IS_SCREEN_DECOR;
             leftlp.gravity = Gravity.LEFT;
-            leftlp.setFitInsetsTypes(0 /* types */);
             mWindowManager.addView(mLeftNavigationBarWindow, leftlp);
         }
+
         if (mRightNavigationBarWindow != null) {
             int width = mResources.getDimensionPixelSize(
                     R.dimen.car_right_navigation_bar_width);
@@ -410,9 +412,7 @@ public class CarNavigationBar extends SystemUI implements CommandQueue.Callbacks
                     PixelFormat.TRANSLUCENT);
             rightlp.setTitle("RightCarNavigationBar");
             rightlp.windowAnimations = 0;
-            rightlp.privateFlags |= WindowManager.LayoutParams.PRIVATE_FLAG_IS_SCREEN_DECOR;
             rightlp.gravity = Gravity.RIGHT;
-            rightlp.setFitInsetsTypes(0 /* types */);
             mWindowManager.addView(mRightNavigationBarWindow, rightlp);
         }
     }
diff --git a/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBarController.java b/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBarController.java
index 55c11530fc375..9e194fb49d3a4 100644
--- a/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBarController.java
+++ b/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBarController.java
@@ -20,7 +20,6 @@ import android.content.Context;
 import android.view.View;
 import android.view.ViewGroup;
 
-import androidx.annotation.NonNull;
 import androidx.annotation.Nullable;
 
 import com.android.systemui.R;
@@ -160,8 +159,12 @@ public class CarNavigationBarController {
     }
 
     /** Gets the top navigation bar with the appropriate listeners set. */
-    @NonNull
+    @Nullable
     public CarNavigationBarView getTopBar(boolean isSetUp) {
+        if (!mShowTop) {
+            return null;
+        }
+
         mTopView = mNavigationBarViewFactory.getTopBar(isSetUp);
         setupBar(mTopView, mTopBarTouchListener, mNotificationsShadeController);
         return mTopView;
diff --git a/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBarView.java b/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBarView.java
index 46a720b884190..20fc1bcd60132 100644
--- a/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBarView.java
+++ b/packages/CarSystemUI/src/com/android/systemui/car/navigationbar/CarNavigationBarView.java
@@ -16,10 +16,14 @@
 
 package com.android.systemui.car.navigationbar;
 
+import static android.view.WindowInsets.Type.systemBars;
+
 import android.content.Context;
+import android.graphics.Insets;
 import android.util.AttributeSet;
 import android.view.MotionEvent;
 import android.view.View;
+import android.view.WindowInsets;
 import android.widget.LinearLayout;
 
 import com.android.systemui.Dependency;
@@ -44,7 +48,6 @@ public class CarNavigationBarView extends LinearLayout {
     // used to wire in open/close gestures for notifications
     private OnTouchListener mStatusBarWindowTouchListener;
 
-
     public CarNavigationBarView(Context context, AttributeSet attrs) {
         super(context, attrs);
         mConsumeTouchWhenPanelOpen = getResources().getBoolean(
@@ -75,6 +78,30 @@ public class CarNavigationBarView extends LinearLayout {
         setClickable(true);
     }
 
+    @Override
+    public WindowInsets onApplyWindowInsets(WindowInsets windowInsets) {
+        applyMargins(windowInsets.getInsets(systemBars()));
+        return windowInsets;
+    }
+
+    private void applyMargins(Insets insets) {
+        final int count = getChildCount();
+        for (int i = 0; i < count; i++) {
+            View child = getChildAt(i);
+            if (child.getLayoutParams() instanceof LayoutParams) {
+                LayoutParams lp = (LayoutParams) child.getLayoutParams();
+                if (lp.rightMargin != insets.right || lp.leftMargin != insets.left
+                        || lp.topMargin != insets.top || lp.bottomMargin != insets.bottom) {
+                    lp.rightMargin = insets.right;
+                    lp.leftMargin = insets.left;
+                    lp.topMargin = insets.top;
+                    lp.bottomMargin = insets.bottom;
+                    child.requestLayout();
+                }
+            }
+        }
+    }
+
     // Used to forward touch events even if the touch was initiated from a child component
     @Override
     public boolean onInterceptTouchEvent(MotionEvent ev) {