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Auto Insurance in North Carolina

The State of North Carolina currently requires that all drivers be covered under liability auto insurance and that proof of car insurance always be carried within the vehicle at any moment.

North Carolina was one of the first states in the country to mandate liability insurance coverage on motor vehicles. For as long as your vehicle is registered, you will need to maintain and carry proof of insurance when operating the vehicle. Acceptable forms of proof of insurance include your company name and policy number, if you're providing insurance for yourself, or an insurance certificate from a company licensed to do business in North Carolina.

North Carolina auto insurance laws require insurance companies to inform the Division of Motor Vehicles when a policy has been cancelled. Should your insurance coverage lapse for any reason, you will receive a notice known as a Form FS 5-7 from the DMV. You will then have 10 days to respond. If you did indeed have a lapse in coverage, you will need to be recertified and pay $50 within the 10 day period. If you do not respond to the notice, you will lose your license plates for 30 days. If this happens, you will have to pay a penalty fee, processing fee and license plate fee to get your license reinstated.

North Carolina Minimum Liability Coverage

Liability coverage is required by law in the State of North Carolina. The minimum liability amounts for the State of North Carolina are as follows:

  • $30,000 bodily injury per person.
  • $60,000 total bodily injury per accident.
  • $25,000 total property damage per accident.

Remember that these are only the minimum requirements set by the state. Experts always advise that drivers get more than the state-mandated minimums, particularly if you have assets you need to protect, since these limits have not kept pace with the skyrocketing costs of car repairs and medical care. Also, getting liability coverage alone will not cover you in case of damage to your own car, so most drivers will want to add collision and comprehensive coverage to their policies.

Uninsured/Underinsured Motorist Coverage

Some, not all, states will require that drivers carry UM/UIM, also known as uninsured/underinsured motorist coverage. This coverage will protect the driver in the event that an accident occurs and the other party does not have auto insurance.

The State of North Carolina currently requires UM/UIM coverage, with mandatory UM/UIM limits being the same as a driver's liability limits.

No-Fault Insurance

North Carolina is a not no-fault state, so no-fault insurance is not required.

Personal Injury Protection (PIP)

PIP is an extension of car insurance available in some U.S. states that covers medical expenses and, in some cases, lost wages and other damage.

The State of North Carolina current does not require drivers to carry PIP insurance.

North Carolina SR-22 Requirements

SR-22 is a document that is required to be filed with a state's DMV as proof that the minimum liability coverage for the state is being carried. Not everyone needs an SR-22 filing. SR-22s are typically required for a driver to reinstate their driving privileges after an offense such as a DUI conviction, uninsured auto accident, or driving without proof of insurance.

North Carolina currently does not require an SR-22 filing to reinstate a driver's license.

North Carolina DUI Laws

For the first DUI offense in the State of North Carolina, you will face the following maximum penalties:

  • 1 year license suspension
  • Mandatory substance abuse treatment

Additional Information on North Carolina Insurance

For additional information, you can contact the North Carolina Department of Insurance at (800) 546-5664 or go to their website at

Read more about the Most Popular Auto Insurance Carriers in NC.