North Carolina Car Insurance Regulations & Required Coverage

North Carolina car insurance regulations operate under a tort system, meaning the at-fault driver and their insurance are responsible for covering damages and injuries sustained by all parties. North Carolina auto insurance requirements are 30/60/25 in both minimum liability and uninsured motorist coverage. To get the best rates on your North Carolina car insurance coverage, enter your ZIP code below to compare quotes from local companies for free.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Nov 5, 2020

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North Carolina car insurance rates can vary from driver to driver but the state has minimums that all drivers must maintain. The state follows a tort system and therefore it is recommended that drivers obtain insurance coverage greater than the state minimums. Failure to maintain adequate coverage in North Carolina can result in fines and other penalties.

In North Carolina, when a car accident occurs, someone must always be found to be at fault for causing the accident. This type of system is known as a tort system. The person found at fault, along with their insurance company, is then held responsible for paying any financial liabilities resulting from the crash.

Required Coverage

All personal vehicles in Texas require the following liability coverage requirements:

  • Bodily Injury
  • Property Damage

Additionally, North Carolina requires the following coverage:

  • Uninsured / Underinsured Motorist Bodily Injury
  • Uninsured / Underinsured Motorist Property Damage
Minimum North Carolina Car Insurance Requirements
Bodily Injury Liability $30,000 / $60,000 Limit
Property Damage Liability $25,000 Limit
Uninsured/Underinsured Bodily Injury $30,000 / $60,000 Limit
Uninsured/Underinsured Property Damage $25,000 Limit

Additional insurance coverage can include:

  • Comprehensive and Collision Coverage

Collision insurance coverage pays for repairs to your vehicle after it has been in an accident. Comprehensive insurance coverage pays for repairs to your vehicle for situations not specifically resulting from an accident. These can include incidents such as your car being vandalized or hurricane damage. The most stolen vehicles in North Carolina may be more likely to benefit from comprehensive, but it’s still recommended to add this option to your policy. Each coverage will pay out expenses above your chosen deductible.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

  • Get a standard liability car insurance policy

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

  • Insurance ID Card
  • Self Certification – you will need to provide the insurance company name and policy number
  • Certificate of Insurance (FS-1)

You must maintain proof of insurance and financial responsibility and present it:

  • When asked by a police officer
  • When obtaining or transferring your license or permit
  • When restoring your license after having it revoked or suspended
  • When awarded a “Limited Privilege” license by the court
  • When obtaining a title or registration for your vehicle

Failure to Maintain Financial Responsibility Penalties

If you are unable to show proof of insurance when asked, you can face one of the following penalties:

  • A fee listed on form FS 5-7
  • 30 day license suspension
  • Other penalties and fines that can be in excess of $200

In North Carolina, if you cancel your coverage or if your coverage lapses, you are responsible for replying to a notice sent by the DMV within 10 days. If you fail to notify the DMV in 10 days, you are liable for paying fees listed on form FS 5-7. If you do not respond to the notice or have proper coverage, you can face harsher penalties such as having your license suspended and fines that can total more than $200. After, you will then be required to complete form FS-1 and submit it to the DMV.

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