North Carolina Car Insurance Requirements

In North Carolina, you are legally mandated to be able to afford covering the cost of injuries or damages that are the result of a car accident. Most people choose to purchase insurance to meet this requirement.

All drivers must have, at the very least, liability insurance and uninsured motorist coverage.

North Carolina Auto Insurance Minimums

To comply with North Carolina insurance laws, your liability insurance must meet the following minimums:

• $30,000 for bodily injury liability, per person, per accident
• 60,000 total for bodily injury liability total, per accident
• $25,000 for property damage liability, per accident

You are also required to have uninsured motorist coverage at the same minimums as your liability insurance.

North Carolina Proof of Insurance

North Carolina requires you to provide proof of insurance when you register your vehicle. You can provide: a North Carolina car insurance policy, an insurance card, an insurance binder, or a DL-123 form issued by your insurance agent.

North Carolina Safe Driver Incentive Plan

The North Carolina Safe Driver Incentive Plan (SDIP) is an initiative that was created by the state to give drivers a financial incentive to drive safely.

Vehicle operators get points for at-fault accidents and driving violations. Insurance costs increase for unsafe drivers.

Optional North Carolina Auto Insurance

Personal injury insurance and property damage insurance are not required in North Carolina. However, most insurance companies will offer additional coverage to help offset costs in the case of an accident. The following types of insurance may be available:

• Collision – For accident-related damages to your car
• Comprehensive – For any damages to your car that are out of your control, such as weather-related damages
• Towing and labor
• Rental car

North Carolina Reinsurance Facility

North Carolina laws don’t allow insurance companies to refuse liability coverage to any driver, but high-risk drivers might pay higher premiums. If you have a poor driving record, you may be considered a high-risk driver.

Insurance companies have the option of insuring you through a North Carolina Reinsurance Facility (NCRF). This system allows insurance companies to share the risk associated with your policy.

North Carolina Insurance Discounts

You can ask your insurance company if you are eligible for insurance discounts. They may offer them if:

• You agree to pay via an Electronic Funds Transfer
• You renew your policy and have a clean driving record
• You are a mature driver (generally age 55 or older)

North Carolina Insurance Premium Factors

To determine your insurance premiums, insurance companies will look at the following factors:

• Driving record – this will have the largest impact on your premium
• Where you live – insurers consider vehicle population density, repair rates, road conditions, medical costs, and the average number of accidents in the area
• Type of automobile – insurers consider the likelihood of being stolen, whether or not it’s a sports car
• Use of automobile – if you use your car more frequently, you may pay higher premiums

Most Stolen Cars in North Carolina

You might pay higher premiums if your car is commonly targeted by car thieves. The following cars are the most-stolen in North Carolina:

1. Honda Accord
2. Honda Civic
3. Ford Pickup (Full Size)
4. Chevrolet Pickup (Full Size)
5. Toyota Camry