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North Carolina Car Insurance Requirements

North Carolina Minimum Car Insurance Requirements

The state of North Carolina requires all drivers to carry two types of car insurance: liability insurance and uninsured/underinsured motorist coverage. With each of these insurance types also some state-mandated minimums every driver must at least carry. These minimum coverage amounts are as follows:

Liability Insurance

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

Uninsured/Underinsured Motorist Coverage

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

Proof of insurance must be carried while you are driving in North Carolina, and if asked by law enforcement, you must present this proof. Also, keep in mind that if you have an auto loan or lease your vehicle, your lender or leasing company could require you to carry additional car insurance.

North Carolina Uninsured/Underinsured Motorist Coverage

The state of North Carolina requires drivers to carry uninsured/underinsured motorist coverage. This type of insurance will help pay for your injuries when another driver’s insurance company is either nonexistent or cannot pay for your expenses. North Carolina is a bit unique in the sense that they also require uninsured/underinsured coverage to also cover property damage. If you end up in an accident with a driver lacking insurance, in order for some payout, you would need to turn to uninsured/underinsured motorist insurance.

North Carolina Liability Car Insurance

North Carolina, like many other states, requires you to carry liability insurance. Liability insurance covers injuries and property damage you cause in an accident you have found to be at fault for. It will also cover pain and suffering compensation and lost wages. It is important to note that your liability insurance policy will never cover any of your injuries or damage to your property. It is reserved only for an accident in which you have been found responsible.

Car Insurance Limits in North Carolina

The term limits refer to the maximum amount that your insurer will pay in the event of a claim. On the flip side, states will set minimum limits of coverage that all drivers must carry. In North Carolina, liability insurance minimums are expressed as 30/60/25. Each of the three numbers represents a different aspect of liability insurance. Those categories and what they cover are explored below.

  • Bodily injury per person is the maximum amount of money your insurance company will pay for injuries to one person in an accident you caused.
  • Bodily injury per accident is how much your insurer will pay for all injuries you cause in an accident.
  • Property damage per accident refers to the amount of money your insurer will pay for damage you caused in an accident.

Uninsured/underinsured motorist coverage In North Carolina operates the same way except that it covers your injuries and property damage when the other driver doesn’t have liability insurance. It will pay for things like your medical expenses and vehicle auto repairs. You should also note that coverage limits are the same as liability coverage.

Is North Carolina’s Mandatory Car Insurance Minimums Enough Coverage?

Insurance laws in North Carolina are not too unlike those found in other states, but that does not mean they offer adequate coverage. It would be in your best interest to purchase a policy with increased coverage limits along with utilizing policy add-ons. One accident can be detrimental to your finances if you lack good insurance. For example, $25,000 in property damage coverage may not be enough to fully cover the expenses for a new vehicle should you total someone else’s. Anything not covered by insurance will land back in your lap.

Driving Without Car Insurance in North Carolina

Since car insurance is mandatory in the state of North Carolina, failing to abide by the law will come with some unfortunate consequences. The chart below outlines what you could be facing if you choose to drive without insurance in North Carolina.

1st Offense
2nd Offense
3rd Offense
Jail Times
1-45 days of probation
Probation up to 45 days or jail time
Probation up to 45 days or jail time
License Suspension
30 days
30 days
30 days

On top of what has been outlined above, you could also be facing a reinstatement fee, suspension of your vehicle registration, and maintaining an SR-22 certificate.

Additional Types of Car Insurance in North Carolina

While North Carolina already requires a couple of different types of car insurance, there are numerous other ways you can expand your coverage even further. Listed below are some common types of car insurance you can add to your policy.

  • Collision: Collision coverage pays for damages to your vehicle following an accident with another car.
  • Comprehensive: This coverage protects your car from damages after a non-collision-related incident. Some events covered under this policy include theft and extreme weather.
  • Gap Coverage: This insurance will cover the difference between the actual cash value of your vehicle and what is remaining on your auto loan. This can come in handy if your car ends up being worth less than what is left on your loan.
  • Rental Car Reimbursement: If your car is out of commission following an accident, this coverage can help pay for the costs of renting a vehicle until yours is back up and running.
  • Medical Payments: This coverage will pay for medical expenses you and your passenger(s) accumulate as a result of an accident. It pays out no matter who was found to be at fault for the collision.

Car Insurance is Important For Any North Carolina Driver

Carrying proper car insurance not only keeps you within the law in North Carolina but is also offers valuable protection. As we have outlined, an accident can be very costly if your insurance is lacking. In order to make sure you and your assets are protected, you will want to obtain a policy with strong coverage limits and useful add-ons. Remember, anything that goes unpaid can come back to you. Having to pay out of pocket for an accident can put your finances in an unfortunate position. Not to mention foregoing insurance can land you in jail or hit with multiple fines.

Don’t let high annual premiums stop you from driving insured. Contact Insurance Navy today for your free cheap car insurance quote and see for yourself how cheap coverage can really be. Call us at 888-949-6289 or use our mobile app to request a quote. Agents are also available to help you in person at one of our many storefronts.

*This product may not be available in every state, please call an agent for more information.