Insurance requirements for registering a car in North Carolina
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The North Carolina Department of Transportation requires all drivers in North Carolina to have motor liability insurance or "financial liability" in order to legally operate a vehicle and retain the vehicle's registration.
The minimum financial liability requirements for North Carolina drivers are as follows:
Minimum $30,000 per person for personal injury or death. This means you need to have at least $60,000 with you to cover the fewest possible number of people involved in an accident (two drivers).
$25,000 minimum for property damage liability
A minimum of $30,000 per person for an uninsured or underinsured motorist. This means you need to have at least $60,000 with you to cover the fewest possible number of people involved in an accident (two drivers).
This means that the total minimum financial liability you will need is $145,000 for bodily injury, property damage and coverage for uninsured or underinsured motorists.
proof of insurance
You must be able to provide an insurance certificate when you register your vehicle, and when requested by a police officer at a stop or at the scene of an accident. Acceptable forms of proof of insurance include:
Your insurance policy
Insurance card issued by an authorized insurance company
Your insurance policy
Form DL-123 issued by an authorized insurance agent confirming your insurance policy.
In addition, you may be required to file proof of FS-1 insurance if you suspect that your vehicle insurance has expired. This document serves as proof that you have not allowed your car insurance to expire and is presented by the investigating insurance agent acting as a government agent.
Safe Driver Incentive Plan (SDIP)
To encourage safe driving, North Carolina has a Safe Driver Incentive Plan that can reduce the cost of insurance for safe drivers and increase the cost of insurance for unsafe drivers.
Penalties for Violation
If your insurance expires for any reason while you are registered in the state of North Carolina, you will incur the following penalties:
$50 fine for the first time
$100 fine for the second incident within three years.
$150 fine for future cases within three years.
Vehicle license plates may be suspended or revoked
Restoration of driver's license
If your license plates are suspended due to an insurance breach, you can restore them after the 30-day suspension period by following these steps:
Pay the state fee
Pay fees related to breach of insurance
Submit the FS-1 Proof of Insurance through your insurance agent.
Cancellation of insurance
If you need to cancel your insurance while your vehicle is in storage or repair, you must turn in your license plates to the North Carolina Department of Transportation before canceling your insurance policy. If you cancel your insurance policy first, you will incur a breach of insurance penalty.
For more information, contact the North Carolina Department of Transportation through the MyDMV website.
