North Carolina Car Insurance Requirements, Rules and Laws
In North Carolina, every driver has to buy the liability insurance. The liability insurance coverage is $30,000 for per person. If two or more people are involved in the accident, the liability insurance must cover at least $60,000 per accident. The minimum requirement for the property damage is $25,000.
Many financial experts recommend insurance buyers to purchase more car insurance than the minimum requirements. Without sufficient insurance, you can become bankrupt if the third party become severely injured and sue you for a large amount of money. Young drivers often have problem paying the car insurance because of the higher premium cost. If you can present a report card with straight A, you will probably get discount for your car insurance. When shopping for car insurance, it is important that you use the insurance quotes search engine to find the best rates online. It does not mean that cheap insurance quote is good. Cheap insurance will provide lesser benefit to you so you are not taking any advantage at all. You should check with the BBB to determine whether the insurance company is legitimate and financially stable.
North Carolina is strict in that it does not allow its residents to carry other proofs of financial responsibilities. The Division of Motor Vehicles in North Carolina requires you to have a certificate of insurance, policy number and insurance company name. You have to make payment for the premium every year so that it will not be cancelled by the insurance carrier.
If you stop paying the premium, the insurance company will notify the Division of Motor Vehicles about it. As a result, a notice will be sent to your house by the state. The notice will be sent to you in 10 days after the state is notified. After you received the notice, you are required to pay the fee on the form and renew your insurance premium. The fee listed on the form must be paid if you experience a gap during your insurance policy term.
When a traffic police ask you for the insurance policy proof, you must be able to produce it. If you are unable to produce it, you can get fined for $200. The $200 fee includes all the penalty fees of your offence. Your car driving license will be suspended for 1 month. You have to produce the proof of insurance policy or financial responsibility within 1 month if you want to reinstate your driving license.
North Carolina Department of Insurance
- 430 N. Salisbury St. Raleigh, NC 27603
- Phone: (800) 546-5664
North Carolina Department of Transportation
- 2612 N Duke St. Durham, NC 27704
- Phone: (919) 560-6858