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 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 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 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.