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Driving without insurance in North Carolina is illegal, and individuals who do not have an aggressive insurance policy can face several types of penalties, including fines and licence suspensions. It is important to understand NC driving without insurance laws to ensure you are legal when you are behind the wheel. Bankrate’s insurance editorial team has looked at state regulations that will help you understand what you need to drive legally in Tar Heel.
Minimum insurance is required in North Carolina
In North Carolina, all drivers must purchase at least the minimum amount of car insurance. Otherwise, if you are being pulled, you can receive a quote. The state requires all insurers to notify the DMV whenever a driver’s policy expires, so it’s easy to be handed over in North Carolina to drive without insurance.
In North Carolina, the minimum amounts each driver needs to have are:
- Responsibility for physical disability: $50,000 per person. $100,000 per accident
- Liability for property damages: $50,000 per accident
- Uninsured driver’s physical injury: $50,000 per person. $100,000 per accident
- Property damage to drivers with uninsured/underinsured: $50,000 per accident
While the minimum amount of car insurance covers you from a legal standpoint, we recommend considering more financial protection for collisions and comprehensive coverage.
- Collision insurance: Collision insurance is a type of car insurance that covers the cost of damages incurred on a vehicle if they are involved in an accident. Provides financial protection against physical damage caused by the incident.
- Comprehensive Insurance: Comprehensive Auto Insurance provides coverage for damages that occur as a result of non-collision-related events. This includes theft, vandalism, natural disasters, or fallen items. This provides financial protection against a wide range of incidents beyond typical accidents.
Penalties for driving without insurance in North Carolina
If you drive without insurance, North Carolina will evaluate fines totaling between $100 and $200. Some drivers may be seduced by insurance temptations due to costs, but fines assessed for doing so will be in addition to other penalties such as termination of licenses and vehicle registration. The maximum fine taken into account can be greater than the average monthly output of car insurance premiums. You may be relieved to know that the average cost of car insurance in North Carolina is significantly lower than the national average, but full coverage costs $1,956 a year, or $163 a month.
There are several penalties you may face as driving without insurance in North Carolina is considered a misdemeanor. Generally, the severity of the punishment increases with each crime.
| First violation | 1-45 days of probation | Civil penalty fee of $50. $50 recovery fee | 30 Days of Suspension | 30 Days of Suspension |
| Second violation | Up to 45 days of prison or probation | Civil penalty fee of $100. $50 recovery fee | 30 Days of Suspension | 30 Days of Suspension |
| Third and subsequent crimes | Up to 45 days of prison or probation | Civil penalty fee of $150. $50 recovery fee | 30 Days of Suspension | 30 Days of Suspension |
You will be involved in an accident without insurance
Accidents can happen to anyone, even with the safest drivers. If you get involved in an accident while driving without insurance in NC and find yourself responsible for the accident, you can face serious financial challenges. As outlined below, even if you are not liable, you may face penalties.
There is no responsibility
Even if you didn’t have an accident, the on-site officers will probably give you a ticket for not having insurance. If your car is available to drive after an accident, you may need to pay a tow or exemption fee as the police know you are not covered by insurance is likely not allowed to drive it. Nevertheless, you can file a claim with a breakdown driving insurance company, assuming they are properly insured.
breakdown
North Carolina is in a state of disability/tort. This means that the driver responsible for the accident is financially liable for the damage caused by the collision. The minimum liability limit is $50,000/$100,000 for physical injuries and $50,000 for property damage, but these amounts can easily be exceeded, especially in the event of serious injuries. Any costs exceeding the policy’s coverage limits must be paid through your pocket. For this reason, insurance experts recommend choosing a higher limit (for example, 100/300/100).
All of these economic consequences include potentially losing your license, paying fines and even going to prison. With these implications in mind, it is important to carry car insurance as well as something with sufficient financial protection.
