North Carolina Auto Insurance Requirements

Whether heading up the Great Smoky Mountains, taking a beach vacation on the Outer Banks, or commuting to work in Charlotte, there are plenty of places to go in the Tar Heel State when you have some free time and an adequate car insurance policy.

Every driver in the state must have an active North Carolina auto insurance policy before getting behind the wheel, lest they face legal penalties. Driving without the minimum coverage required by law is illegal and could land drivers some severe consequences. Let’s check out exactly what’s necessary on a policy in the Tar Heel State, what the law says about auto accidents, and answer your frequently asked questions about car insurance laws in the state.

When it comes to car insurance in North Carolina, there are a few things drivers should know before they bind policies or get behind the wheel. First of all, it’s essential to remember that driving without the minimum amount of coverage required by state law is illegal. Maintaining a policy is necessary for all North Carolinians who drive, both for their safety and legal purposes.

A minimum coverage policy in the Tar Heel State will have a limit of $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident (30/60/25 liability coverage), and the same 30/60/25 limit for uninsured motorist coverage (UM). Those who lease or finance their vehicles may need to carry comprehensive and collision coverages as part of their agreement. 

Drivers in the Tar Heel State who maintain a policy with the legal minimum amount of coverage are adequately protected in the eyes of the law. While some drivers may be content with a minimum coverage policy, others may feel such minimal coverage leaves them inadequately protected on the roads. Those uncomfortable with such minimal protection may opt for a full coverage policy with higher limits of the legally necessary coverages and several optional coverage types added on.

North Carolina car insurance requirements mandate that drivers have at least 30/60/25 liability and UM coverages on their policies. Drivers who fail to carry such coverages may face legal penalties ranging in severity depending on the severity and frequency of the incident.

Insurance regulations in the Tar Heel State require drivers to carry liability coverage because the state is a tort state. North Carolina isn’t a no-fault state but a tort state, meaning at least one driver must be liable in every accident. Generally, the insurance laws in tort states require drivers to carry liability coverage to cover the victim’s accident expenses should the policyholder be considered at fault in an accident.

North Carolina car insurance laws require drivers to carry a minimum limit of both liability and UM coverage. Any other coverages aren’t legally necessary but may help North Carolinians feel safer behind the wheel.

While policyholders are only required to carry liability coverage and UM coverage, which acts similarly to liability coverage but instead covers the policyholder’s accident expenses should the at-fault driver be uninsured, some drivers opt to carry more coverage than is legally necessary. Drivers may opt for full coverage policies if they want coverage for accident expenses regardless of who’s at fault or in accidents where there isn’t fault. 

Full coverage policies in the Tar Heel State may contain higher liability and UM limits than legally necessary but may also contain optional coverages like underinsured motorist coverage (UIM), a first-party medical benefit (FPMB) like personal injury protection (PIP) or medical payments coverage (MedPay), collision coverage, comprehensive coverage, or gap coverage, among others. 

In North Carolina, the minimum insurance requirements mandate all drivers must have at least 30/60/25 in liability coverage, and the same limit in uninsured motorist (UM) coverage. While maintaining the minimum amount of coverage legally required in the state will protect drivers from legal penalties in the event of an accident, it may not offer enough coverage for some policyholders.

Say a policyholder with a minimum coverage policy is in an accident with an uninsured driver. If the driver’s medical expenses exceed their coverage limit of $30,000 in UM coverage, they’re on the hook for their bills once they reach that coverage limit. 

The same goes for the scenario where a policyholder with a minimum coverage policy is in an accident with another driver with minimum coverage. Once the victim with a minimum coverage policy maxes out the at-fault driver’s liability coverage, they don’t have any coverage for the remainder of their expenses.

While a full coverage policy costs more than a minimum coverage one, North Carolina is actually one of the cheapest states to have auto insurance. The average full coverage policy in the Tar Heel State costs about $1,340 annually, or about 20% less than the national average of $1,670 annually. 

In North Carolina, the liability insurance requirements mandate all drivers must have an active policy with at least 30/60/25 liability and UM coverages. Every insurer in the state will offer a policy with at least the minimum amount of coverage required by state law. 

Insurance is highly subjective based on the driver, policy, and insurer. Drivers may tailor their policies to meet their individual needs, whether they prefer coverage over cost, cost over coverage, or value both equally.

The cheapest policy in the state will likely be a minimum coverage policy from an insurer that offers low base rates and plenty of discounts. However, the best policy in North Carolina will vary from person to person, depending on their values, but it may be a full coverage policy from an insurer with a great reputation.

North Carolina accident laws can be tough to wrap your head around, especially when it comes to understanding auto insurance in the context of an accident. Let’s check out some frequently asked questions about auto insurance requirements and car accident laws in the Tar Heel State.

Yes, all drivers in North Carolina need a car insurance policy that contains the minimum amount of coverage required by law. A minimum coverage policy in the state has at least 30/60/25 liability and UM coverages. 

A policy that meets these requirements is all North Carolinians need to be considered adequately insured in the eyes of the law. However, the amount of car insurance one may need to maintain their safety behind the wheel may differ from person to person, depending on each driver’s comfort level. Many drivers feel perfectly fine with a minimum coverage policy, while others feel safer on the road with a full coverage one.

In North Carolina, insurance follows the car, not the driver. Many coverages that appear on one’s policy will follow the car instead of the driver, meaning anyone driving the insured car will be protected if they’ve been given permission to get behind the wheel. 

Generally, the only type of coverage that follows the driver instead of the car is a FPMB.

Yes, auto insurance is required in North Carolina. Drivers in the Tar Heel State must always maintain at least 30/60/25 liability coverage and UM coverage. Those who fail to maintain an adequate amount of coverage may face legal penalties such as fines, fees, license and registration suspension, or even jail time.

Yes, all drivers in North Carolina have to have car insurance. It’s illegal to drive without an active and adequate policy in the Tar Heel State. Those who break this law may face legal penalties and significant obstacles when it comes to getting and maintaining an auto insurance policy in the future. 

Drivers who’ve previously been caught driving without insurance in the Tar Heel State may require an SR-22 form to be filed on their behalf, otherwise known as a DL-123 in North Carolina. The existence of this form on one’s record indicates that they have a track record of making poor decisions behind the wheel, and may make it difficult for the driver to find an insurer that’s willing to bind a policy with them, let alone obtain a policy at an affordable rate.

Yes, car insurance is mandatory in North Carolina. All drivers must have at least 30/60/25 liability and uninsured motorist coverage on their policies. While all drivers must have at least 30/60/25 liability and UM coverage on their policies, some drivers may opt for higher limits of those coverage types and several optional coverages to be added to their policies. 

Whether you’re content to carry the minimum car insurance in North Carolina or prefer to have a full coverage policy, the best way to find a policy that meets your needs is to get and compare quotes online. By getting and comparing quotes, you can see all your options in one place so you can get the most bang for your buck.

Luckily for you, you’ve come to the perfect place for quotes. Here at Clovered, we offer a free quoting tool you can use to access your unique quotes in just minutes. If you’d prefer to speak to a person about your quote, we have those too! You can contact one of our licensed agents at 833-255-4117 or [email protected].