North Carolina Auto Insurance Guide

In order to mitigate the financial damage to the state and its citizens caused by the number of drivers without insurance and unable to pay for accidents, the state of North Carolina has instituted financial responsibility requirements for all operators of motor vehicles. Auto insurance in North Carolina is not as strict as it is in some states - basic liability insurance is all that is required - but the minimum levels of insurance required are somewhat unusual.

North Carolina Insurance Regulations

Insurance companies operating in North Carolina are required to notify the state if you cancel your insurance policy or allow it to lapse. The state will send out a notice within 10 days of receiving this information and you will have to pay a fee associated with a gap in insurance as well as submit your current insurance information. Your license will be suspended for 30 days if you do not provide coverage.

Mandatory Minimum Coverage in North Carolina

North Carolina auto insurance requirements include the following:

• $30,000 - bodily injury liability to cover injury to a single person in an accident.
• $60,000 - maximum bodily injury liability or death coverage resulting from a single accident.
• $25,000 - for damage to personal or government property in an accident.

Note that these coverage levels are minimum, not necessarily recommended, and that this type of insurance - liability insurance - provides no protection for you as a driver or for the repairs to your vehicle after an accident. You will want to seek additional coverage for that.

Motorcycle Coverage Requirements

North Carolina, like many states, does not differentiate levels of coverage for motorcycle drivers, so the minimum requirements listed above (30/30/25) are the same levels that you will need to operate a motorcycle. Driving a motorcycle in North Carolina requires a different type of license than the standard license for operating a motor vehicle.

North Carolina State Auto Insurance Advice

Though North Carolina insurance regulations are not as strict as in some states which also require uninsured/underinsured motorist or Personal Injury Protection, insurance costs can still be fairly high, especially for younger drivers. It is important for younger drivers to shop around using the Internet to find the best rates of coverage for them and not be tempted by the expense to "go cheap" and stick with the minimum coverage levels - especially if they stand to lose a lot in a lawsuit.