North Carolina Car Insurance Requirements (Updated for 2025)
North Carolina law requires all drivers to carry minimum liability insurance coverage. Driving without insurance can lead to fines, suspension of your driver’s license and vehicle registration, and other penalties.
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Minimum Liability Coverage in North Carolina
The required minimum liability insurance limits as of 2025 are:
- Bodily Injury Liability: $30,000 per person / $60,000 per accident
- Property Damage Liability: $25,000 per accident
- Uninsured Motorist Bodily Injury: $30,000 per person / $60,000 per accident
- Underinsured Motorist Bodily Injury: $30,000 per person / $60,000 per accident
Proof of Insurance
Drivers must carry proof of insurance and present it upon request by law enforcement or during vehicle registration. This proof can be a physical card or an electronic version on a mobile device.
Penalties for Driving Without Insurance
- First Offense: $50 to $1,000 fine, license suspension for 30 days, and registration suspension until proof of insurance is provided.
- Second Offense: $100 to $2,000 fine, license suspension for 1 year, and registration suspension until proof of insurance is provided.
- Third and Subsequent Offenses: $200 to $5,000 fine, license suspension for 2 years, and registration suspension until proof of insurance is provided.
Optional Coverages to Consider
- Collision Coverage
- Comprehensive Coverage
- Medical Payments (MedPay)
- Rental Reimbursement
- Roadside Assistance
Average Insurance Rates
Insurance premiums vary depending on factors like driving history, location, vehicle type, and coverage choices. Comparing quotes from multiple providers is recommended.
FAQs
Is North Carolina a no-fault state?
No, North Carolina follows an at-fault system where the at-fault driver pays for damages.
What is an SR-22 in North Carolina?
An SR-22 is a certificate of financial responsibility filed with the state, often required after certain violations like driving without insurance.
Can I drive without insurance if I pay out-of-pocket for damages?
No, North Carolina requires all drivers to carry minimum liability insurance regardless of ability to pay damages out-of-pocket.