North Carolina law mandates that all vehicles registered in the state must maintain continuous liability insurance from a company licensed to operate in North Carolina. It’s important to note that out-of-state car insurance policies are not valid in North Carolina for meeting this requirement. This liability coverage is in place to protect you and your family financially if you are involved in an accident caused by another driver who is underinsured or uninsured. To avoid penalties and potential fines, it’s crucial to keep your car insurance active until you have officially surrendered your license plates to the North Carolina Division of Motor Vehicles (NCDMV).
North Carolina Minimum Car Insurance Coverage
State law in North Carolina sets specific minimum coverage requirements for all car insurance policies, even if you choose to purchase higher coverage limits. These minimums include both bodily injury and property damage liability, as well as uninsured/underinsured motorist coverage. These minimums are designed to provide a basic level of financial protection in the event of an accident.
| Requirement | Coverage Amount |
|---|---|
| Bodily injury (one person) | $30,000 |
| Bodily injury (two or more people) | $60,000 |
| Property damage | $25,000 |
For further details or if you have questions regarding car insurance requirements in NC, you can contact the Consumer Services Division of the N.C. Department of Insurance at (855) 408-1212 and select Option 3.
Penalties for Driving Without Car Insurance in NC
North Carolina strictly enforces its car insurance laws. Insurance companies are legally obligated to notify the NCDMV if a policy is canceled or if coverage lapses for any reason. When the NCDMV receives such a notification, they will send a Liability Insurance Termination Notification to the registered vehicle owner. You will have 10 days from the date on this notice to respond and provide proof of valid Car Insurance Nc coverage.
Failure to respond or to provide proof of continuous insurance can lead to serious consequences. The NCDMV may revoke your vehicle’s license plate, and you will be subject to civil penalties, late fees, interest charges, and potential collections actions. The amount of civil penalties increases with each subsequent lapse in coverage within a three-year period.
Proving You Have Continuous Car Insurance Coverage in NC
Existing and Continuous Coverage
If you receive a notification of insurance lapse but your car insurance coverage has been continuous and valid, you need to take immediate action. Your insurance company, which must be licensed to do business in North Carolina, should electronically submit a certificate of insurance (Form FS-1) directly to the NCDMV. Once the NCDMV receives and verifies the Form FS-1 confirming continuous coverage, their records will be updated, and any penalties will be cleared. To confirm that the insurance lapse issue has been resolved, it’s advisable to call the NCDMV directly at (919) 715-7000. Ignoring penalties can result in your license plate being revoked and seized by law enforcement, along with additional penalties.
Relicensing After a Car Insurance Lapse
If your license plate has been revoked due to a car insurance lapse, you will need to pay a civil penalty to have your vehicle relicensed. The penalty amount depends on your history of insurance lapses within the past three years:
- First Lapse: $50 civil penalty
- Second Lapse: $100 civil penalty
- Subsequent Lapses: $150 civil penalty
In addition to the civil penalty, you will also be required to pay a $50 restoration fee when you renew your vehicle registration. It’s critical to remember that if you are moving out of North Carolina permanently, you should only cancel your North Carolina car insurance policy and surrender your NC license plate to the NCDMV before terminating your insurance to avoid potential penalties.
Lost or Stolen License Plates
If your license plates have been lost or stolen, you are required to report this to the NCDMV by completing and submitting a MVR-18A Form, which can be downloaded from the NCDMV website.
By understanding and adhering to North Carolina’s car insurance requirements, you can ensure you are legally compliant and financially protected while driving in the state.
