Auto insurance is required by law in almost every state, including North Carolina. However, certain auto insurance laws in North Carolina differ from those in other states.
Being arrested without insurance in North Carolina has serious consequences, including hefty fines. Luckily, the Tarheel auto insurance law is simple and easy to understand.
North Carolina Auto Insurance Law
Drivers purchasing auto insurance in North Carolina should review auto insurance laws before purchasing a policy. This ensures that drivers have sufficient coverage to meet state requirements and understand any other laws they must follow. The major auto insurance laws in North Carolina are:
- Liability insurance: All North Carolina drivers must have ongoing liability insurance issued by a company licensed to operate in North Carolina.
- Uninsured and uninsured compulsory insurance: All drivers in North Carolina are required to have both uninsured and uninsured motorist insurance.
- Note regarding coverage expiration: North Carolina insurance companies are required by law to notify the State Motor Vehicles Department (DMV) when a driver’s coverage is canceled or expired for any reason.
- Insurance card: All North Carolina drivers are required to carry insurance documents with their vehicle at all times and provide proof of insurance if requested by authorities.
North Carolina Liability Insurance
North Carolina requires drivers to have liability insurance, including liability insurance for personal injury and property damage, and uninsured and uninsured driver insurance. The amount of compensation required by state is as follows:
- $30,000 personal injury liability insurance per person
- $60,000 liability insurance for accidental personal injury
- $25,000 liability insurance for property damage
However, North Carolina drivers should be aware that minimum coverage insurance may not be sufficient to cover the full cost of a crime-free accident. For example, if someone had an accident and another driver paid for his $80,000 medical bills, the minimum insurance would cover him only $30,000 in expenses. The offending driver is responsible for paying the rest of his $50,000 out of pocket.
Most insurance companies recommend that drivers purchase coverage beyond the state’s minimum requirements for additional protection. Getting higher coverage means paying a higher premium, but providing a higher level of coverage and reducing risk.
Is North Carolina a Debt-Free State?
North Carolina is not a debtor nation. This means that in the event of an accident, the at-fault party’s insurance company is responsible for paying the other driver’s medical bills and lost wages. In guilty states like North Carolina, the driver’s insurance company automatically pays medical bills after an accident, regardless of who caused the accident.
Uninsured driving penalties in North Carolina
Driving without auto insurance in North Carolina is illegal and subject to fines. The North Carolina DMV will send a notice to the vehicle owner if the driver’s insurance policy is canceled or coverage expires. The driver must provide proof of insurance within 10 days after he receives the notification.
If the driver does not respond to the notice within 10 days, the DMV can revoke the vehicle’s license plate and the driver will pay a $50 repair fee. For a second offense, the driver will pay him $100 and all subsequent driver convictions. $150 fine.
car insurance options in north carolina
Getting auto insurance in North Carolina is a fairly straightforward process. After choosing an insurance company, drivers can get a quote and apply for insurance. Drivers decide whether they want minimal insurance or full comprehensive coverage before purchasing insurance. In addition to basic coverage, there are some supplementary insurances that North Carolina drivers benefit from.
- Travel Allowance: Travel Allowance Highway includes basic vehicle repair, towing, battery service, fuel delivery, and disposal if vehicle breaks down.
- Holiday insurance: Gap insurance covers the difference between the value of your car and the remaining loan balance after an accident.
- New car replacement insurance: New car reinsurance pays for a new car when the insured’s car is completely destroyed in an accident.
Frequently Asked Questions
What is the best auto insurance?
The best car insurance is different for each driver. For example, some drivers focus on excellent customer service, while others focus on the lowest price. Some of the best auto insurance companies include Amica, Allstate, Nationwide and USAA.
Is auto insurance mandatory in North Carolina?
Yes, auto insurance is required by law in North Carolina. Drivers must have a minimum of 30/60/25 coverage. This equates to $30,000 third party liability, $60,000 collision damage waiver, and $25,000 collision damage waiver per person. Drivers must also have uninsured or underinsured driver insurance.
How much does car insurance cost in North Carolina?
In North Carolina, the average comprehensive insurance cost is $1,308 per year and the average minimum coverage auto insurance cost is $396 per year.