North Carolina Auto Insurance Requirements

The North Carolina State laws governing auto insurance require you to carry a minimum amount of liability insurance and uninsured/underinsured coverage. You will need to provide proof that you possess the required minimum auto insurance coverage to pay for injuries to another person or damages to their property in case of an accident.

The North Carolina State Department of Revenue and the North Carolina State Department of Insurance are the government agencies you need to present your proof of insurance to. You may also need to contact the Division of Motor Vehicles. All eligible drivers in a household must be covered under a liability auto insurance policy. If your insurance lapses, the insurance company by law must report the lapse. You will then receive a Form FS 5-7 Notice from the Division of Motor Vehicles requiring you to prove you have the mandatory coverage. You will have ten days to respond with proof of insurance or lose the plates to your car.

Mandatory liability auto insurance is also required on rental vehicles by the state of North Carolina. Your personal auto insurance policy generally covers rental cars but if it does not provide coverage for rental vehicles, you may want to check with the credit card that you used to rent the car on. Credit card companies sometimes cover insurance on rental cars. If neither option applies to your situation, you must purchase the minimum liability insurance from the rental company. This coverage will cost you $7.00 to $14.00 per day. Keep the rental agreement in the vehicle throughout the term of the agreement. This will be your proof of insurance in case of an accident or traffic stop.

North Carolina is a Torte state. This means that the individual who is at fault in an accident may be sued by those injured in the accident, or families of those killed in the accident, for pain, suffering, and lost wages. That individual will also be held responsible for all medical expenses connected to the accident as well as property damage.

You must have proof of insurance with you at all times. North Carolina’s mandatory minimum liability auto insurance limits are $30,000.00 per individual injury or death, $60,000.00 for all injured persons, and $25,000.00 for damage to property. In addition, you must carry uninsured and underinsured coverage. These amounts are $30,000.00 for uninsured/underinsured individual bodily injury, $60,000.00 uninsured/underinsured for all injuries, and $25,000.00 uninsured/underinsured property damage. Auto insurance policies purchased in North Carolina will include the mandatory liability minimum insurance limits. You do not have to carry collision and comprehensive insurance on your vehicle but the company must offer you that option.



North Carolina requires motorists to be covered by the mandatory liability auto insurance policy at all times. Should you become involved in an accident or be stopped for a traffic violation and you do not have the required liability policy, you will be cited as an uninsured motorist. Even if the accident is not your fault, you can still be cited for lacking proof of insurance. This will result in fines and other penalties. The penalties will increase with repeat offenses. The exemptions to the mandatory liability insurance are off highway vehicles and non operational vehicles.

If your insurance lapses or cancels for any reason and you are notified by the state, you have ten days to rectify the matter. If you fail to provide proof of insurance in the given time, you will lose the license plates to your vehicle for 30 days minimum. In order to reinstate your registration you will need to provide proof of insurance, pay a $50.00 restoration fee, a $50.00 service fee, and pay all applicable license plate fees. If you are caught driving without insurance coverage or are in an accident without insurance, the penalties will be harsher. You may lose your driver’s license and have 3 points added to your license.



You must produce proof of insurance upon request by the authorities. This proof needs to include the name of the insurance company, the dates of coverage, and the amount of liability coverage. It also needs to include the policy number, VIN number of the vehicles covered, the make and model of the vehicles as well as the name of the policy holder and the individuals covered by the policy. The auto insurance needs to be authorized by a qualified auto insurance company. The generally accepted proof is an identification card issued by the insurance company.

Remember that you may need your proof of minimum liability auto insurance at any time. You will definitely need it in the case of involvement in an accident either as the cause of the accident or the victim of the accident, or if you should be stopped for a traffic violation. You will also need to provide proof if you receive a notice from the state with regard to the lapse of your policy.