Skip the auto shop - Our mechanics make house calls
  1. Home
  2. Articles
  3. Insurance Requirements for Car Registration in North Carolina

Insurance Requirements for Car Registration in North Carolina

Insurance Requirements for Car Registration in North Carolina

The North Carolina Department of Transportation requires that all drivers in North Carolina carry automotive liability insurance, or “financial responsibility,” in order to operate a vehicle legally and maintain vehicle registration.

The minimum financial responsibility requirements for North Carolina drivers are as follows:

  • A minimum of $30,000 per person, for bodily injury or death. This means you’ll need to carry a minimum of $60,000 to cover the lowest possible number of people involved in an accident (the two drivers).

  • A minimum $25,000 for property damage liability

  • A minimum of $30,000 per person, for uninsured or under-insured motorist coverage. This means you’ll need to carry a minimum of $60,000 to cover the lowest possible number of people involved in an accident (the two drivers).

This means that the total minimum amount of financial responsibility you will need is $145,000 to cover bodily injury, property damage, and uninsured or under-insured motorist coverage.

Proof of insurance

You must be able to provide proof of insurance when you register a vehicle, and when asked by a police officer at a traffic stop or at the scene of an accident. Acceptable forms of proof of insurance include:

  • Your insurance policy binder

  • An insurance card issued by an authorized insurance provider

  • Your insurance policy

  • A DL-123 form issued by an authorized insurance agent, certifying your insurance policy

Additionally, you may be required to file an FS-1 Proof of Insurance document if you have been suspected of letting your car insurance lapse. This document acts as proof that you did not allow your car insurance to lapse, and is submitted by an investigating insurance agent, who acts as a representative of the state.

Safe Driver Incentive Plan (SDIP)

In order to promote safe driving habits, the state of North Carolina operates the Safe Driver Incentive Plan, which can lower the cost of insurance for safe drivers, and increase the cost of insurance for unsafe drivers.

Violation penalties

If your insurance lapses for any reason while you are registered in the state of North Carolina, you will incur these penalties:

  • $50 fine for the first instance

  • $100 fine for the second instance within three years

  • $150 fine for future instances within three years

  • The license plates of the vehicle may be suspended or revoked

Reinstating driving privileges

If your license plates are suspended due to an insurance violation, you will be able to reinstate them after the 30-day suspension period by following these steps:

  • Pay the license plate fee

  • Pay the fees associated with the insurance violation

  • Submit an FS-1 Proof of Insurance document through your insurance agent

Canceling your insurance

If you need to cancel your insurance while your vehicle is in storage or being worked on, you must surrender your license plates to the North Carolina Department of Transportation before you cancel the insurance policy. If you cancel the insurance policy first, you will incur an insurance violation fine.

For more information, contact the North Carolina Department of Transportation through the MyDMV website.

The statements expressed above are only for informational purposes and should be independently verified. Please see our terms of service for more details
Icon-warranty_badge-02

Skip the repair shop, our top-rated mechanics come to you.

At your home or office

Choose from 600+ repair, maintenance & diagnostic services. Our top-rated mechanics bring all parts & tools to your location.

Fair & transparent pricing

See labor & parts costs upfront, so you can book with confidence.

12-month, 12,000-mile warranty

Our services are backed by a 12-month, 12,000-mile warranty for your peace of mind.

Get A Quote

Need Help With Your Car?

Our certified mobile mechanics make house calls in over 2,000 U.S. cities. Fast, free online quotes for your car repair.

GET A QUOTE

More related articles

Symptoms of a Bad or Failing Flexible Clutch Hose
Common signs include difficulty shifting, low clutch fluid, and feeling no resistance at the clutch pedal.
P0240 OBD-II Trouble Code: Turbocharger Boost Sensor B Circuit Range/Performance
P0240 code definition Turbocharger Boost Sensor B Circuit Range/Performance What the P0240 code means P0240 is an OBD-II generic code triggered when the Engine Control Module (ECM) detects the intake boost...
How to Avoid Back Pain in a Car
If you have back problems, sitting in a car for an extended period of time can be excruciating. Even without back problems, you could experience discomfort and soreness from...


Related questions

Q: Hit a car and want to know the best way to go about this persons repair.

This would all depend on the extent of the damage caused by the accident. If the paint damages on a very large surface it would probably be best to go through the insurance company to make sure it gets repaired...

Q: What is "diminished value" as it refers to a totaled car?

Hi, thanks for writing in. The insurance company can use "diminished value" for a number of reasons. The overall condition of the vehicle not including the wreck, above average mileage, etc. I would ask them what criteria they are using...

Q: Advice on buying the first car

Unfortunately, I don't want to jinx you, but the first car people get is the first car they wreck. I would say get a nice, used Toyota. You pay less, your insurance will be a lot cheaper. As time goes...