North Carolina Auto Insurance
Whether you’re cruising along the Blue Ridge Parkway to see the sugar maples turn, taking in a Panthers game in Charlotte or a
Tar Heels game in Chapel Hill, touring the Yadkin Valley Wine Trail or doing business in Raleigh, North Carolina has miles of scenic
roads. From Murphy to Elizabeth City, Mount Airy to Wilmington, Winston-Salem to Wrightsville Beach,
sightseeing or commuting,
car insurance
is crucial to being a responsible North Carolina driver.
Auto Insurance Resources for NC State Residents
As of 2010, there were over 6.3 million licensed driver and over 8.2 million registered vehicles in the Tar Heel State.
The Insurance Research Council estimates that 12% of North Carolina drivers are uninsured. The North Carolina Department
of Transportation reported 220,224 traffic crashes in 2006 (the most recently published statistics); 31.6% involved only
one vehicle. That year, there were 119,955 people injured in car crashes and 1,555 fatalities. Speeding was the leading
cause in all the fatal crashes. Uninsured and reckless drivers are good reasons to make sure you have enough car insurance
while living and driving in the Tar Heel State.
North Carolina State Minimum Car Insurance
North Carolina state law requires you to carry a minimum amount of car insurance or face severe penalties. The Tar Heel
State has a tort-based system. That means if you cause an accident, you can be sued. While North Carolina does not require
you to carry additional personal liability or Collision and Comprehensive, if you own property or other valuable assets,
you would be wise to supplement the minimum requires shown below:
- $30,000 bodily injury per person per accident
- $60,000 bodily injury for all persons per accident
- $25,000 property damage liability
- $30,000/$60,000 uninsured motorist bodily injury
- $25,000 uninsured motorist property damage
North Carolina Car Insurance Laws
North Carolina law requires that you carry proof of North Carolina auto insurance in your vehicle and produce it if a
law enforcement officer asks to see it. Driving without car insurance carries a fine from $300 to $800 for a first offense.
You will also receive 3 points of your record. You may also lose your license plates and have your driver’s license
suspended. If you are caught driving with a suspended license, you will be charged with a Class 2 misdemeanor, which
carries a fine and/or jail time.
If you are involved in an accident and don’t have North Carolina auto insurance, you can be fined up to $5,000, plus you
will be liable for all damages and injuries.
North Carolina requires your insurance company to inform them if your policy is canceled or lapses. You will receive a
letter from the NC DMV with a $50 fine and a request to turn in your license plate or show proof of coverage. Failure to
respond can result in temporary suspension of your vehicle registration. Your vehicle could also be impounded.
Regulating Agency and References
North Carolina Department of Insurance
This agency is responsible for regulating vehicle insurance policies sold in North Carolina. For more information, visit their website at
www.ncdoi.com
North Carolina Department of Transportation Division of Motor Vehicles
This is the agency responsible for licensing drivers and registering vehicles. You can learn more about North Carolina auto insurance
requirements, penalties and related information at
www.ncdot.org/dmv/
National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC
provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government
officials who regulate the conduct of insurance companies and agents in their respective states or territories.
Visit NAIC at www.naic.org
Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at
www.iii.org/
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