Auto Insurance Policies: North Carolina Specifics

Auto insurance policies in North Carolina are not all the same. While there are some mandatory coverages, there are also optional coverages that drivers can choose to add to their policies. All drivers in North Carolina are required to have continuous liability insurance and uninsured/underinsured motorist coverage. The minimum legal requirements for liability coverage are $30,000 per person and $60,000 per accident for bodily injury, and $25,000 for property damage. For uninsured/underinsured motorist coverage, the minimum legal requirements are $30,000 per person and $60,000 per accident for bodily injury, and $25,000 for property damage. In addition to these mandatory coverages, drivers in North Carolina can also choose to add optional coverages to their policies, such as collision coverage, comprehensive coverage, medical payments coverage, and rental reimbursement.

What are the minimum insurance requirements in North Carolina?

North Carolina law requires drivers to carry a minimum amount of driving insurance. This includes liability insurance, which protects anyone impacted if the driver causes an accident, and uninsured motorist coverage, which protects the driver if an uninsured driver causes an accident resulting in injuries.

The minimum requirements for insurance coverage in North Carolina are as follows:

• Bodily injury liability coverage: $30,000 per person and $60,000 per accident. This covers the medical bills of the injured party or parties.
• Uninsured motorist bodily injury: $30,000 per person and $60,000 per accident. This covers the driver's medical bills if they are injured by an uninsured driver.
• Uninsured/Underinsured motorist property damage: $25,000. This covers damage to the driver's vehicle and belongings if their vehicle is damaged by an uninsured driver.
• Property damage liability coverage: $25,000. This covers repairs to the other vehicle involved in the accident when the insured driver is at fault.

North Carolina operates on a "'fault' basis", meaning the driver who causes a traffic accident is responsible for any harm done to others. Therefore, it is important for drivers in North Carolina to have sufficient insurance coverage to protect themselves and others in the event of an accident.

What happens if you don't have insurance in North Carolina?

Driving without insurance in North Carolina is illegal and can result in various penalties. North Carolina is an at-fault state, meaning that the driver found to be at fault in an accident is responsible for the damage.

If a driver's insurance policy is cancelled or lapses, the North Carolina DMV will send a notification to the vehicle owner. The driver then has 10 days to respond with proof of insurance. If they do not, the DMV can revoke the vehicle's license plates, and the driver will be fined $50 and charged a $50 restoration fee. For a second offence, the fine increases to $100, with a $50 restoration fee, and all subsequent insurance lapses come with a $150 fine and a $50 restoration fee.

If a driver is involved in an accident and does not have insurance, their license can be suspended for up to a year, and they will receive three points on their driving record, which will increase insurance premiums in the future.

In North Carolina, all drivers are required to have liability insurance and uninsured motorist coverage. Liability coverage must be a minimum of $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $25,000 for total property damage. Uninsured motorist coverage will pay for injury claims if the at-fault driver has no insurance, their insurance is invalid, or they are a hit-and-run driver.

What are the penalties for driving without insurance in North Carolina?

Driving without insurance in North Carolina is considered a Class 1 misdemeanour and can result in several penalties. The severity of the punishment increases with each offence.

First Offence

For a first offence, you will face a $50 civil penalty fee and a $50 reinstatement fee. Your license and registration will be suspended for 30 days, and you may be placed on probation for up to 45 days.

Second Offence

For a second offence, the civil penalty increases to $100, and you will again have to pay a $50 reinstatement fee. Your license and registration will be suspended for 30 days, and you may face jail time or probation for up to 45 days.

Third and Subsequent Offences

For a third and any further offences, the civil penalty is $150, with a $50 reinstatement fee. Your license and registration will be suspended for 30 days, and you may face jail time or probation for up to 45 days.

Accident Without Insurance

If you are in an accident while driving without insurance in North Carolina, you will face the same penalties as above, regardless of who is at fault. If you are found to be at fault, you will be liable for all property damage and medical expenses for anyone else involved in the accident.

What is the difference between minimum and full coverage insurance?

In North Carolina, drivers are required by law to carry minimum coverage auto insurance. This includes liability insurance, which covers the expenses of the other driver and their passengers in the event of an accident where you are at fault. The minimum coverage requirements in North Carolina are:

• $30,000 for bodily injury liability per person
• $60,000 for bodily injury liability per accident
• $25,000 for property damage liability per accident
• $30,000 uninsured motorist bodily injury per person
• $60,000 uninsured motorist bodily injury per accident
• $25,000 uninsured/underinsured property damage coverage

However, it's important to note that minimum coverage insurance may not be sufficient to cover the full cost of an accident. For example, if you cause an accident and the other driver has $80,000 in medical bills, a minimum coverage policy will only cover $30,000 of those expenses. In this case, you would be responsible for paying the remaining $50,000 out of pocket.

Full coverage insurance, on the other hand, offers greater financial protection by including comprehensive and collision coverage. Comprehensive coverage helps pay for damage to your vehicle caused by events outside of your control, such as fire, theft, vandalism, or acts of nature. Collision coverage, on the other hand, helps pay for repairs to your vehicle if you are at fault in an accident or if someone hits you and flees the scene. These additional coverages typically come with a deductible, which is an amount you must pay out of pocket before the insurance company covers the rest.

While full coverage insurance provides more comprehensive protection, it also comes at a higher cost. The average cost of a full coverage policy in North Carolina is $1,705 per year, compared to $491 per year for a minimum coverage policy. Ultimately, the decision between minimum and full coverage insurance depends on your financial situation and your willingness to take on additional risk.

What are the average insurance costs in North Carolina?

The average cost of car insurance in North Carolina depends on several factors, including the type of coverage, age, gender, marital status, driving record, and credit score. Here is a breakdown of the average insurance costs in the state:

Average Cost of Full Coverage Car Insurance

The average cost of full coverage car insurance in North Carolina is around $885 per year or $74 per month. This includes comprehensive and collision coverage, which protects your vehicle in addition to the required liability coverage. The cost of full coverage varies across the state, with the cheapest city being Alexander, at around 13% less than the state average, and the most expensive city being Newell, up to 29% higher than the state average.

Average Cost of Minimum Coverage Car Insurance

The average cost of minimum coverage car insurance in North Carolina is approximately $445 per year or $37 per month. This includes the state-mandated minimum liability coverage, which is $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage per accident, along with uninsured/underinsured motorist coverage with the same limits.

Cost of Car Insurance by Age

Age is a significant factor in determining insurance costs in North Carolina. Younger drivers tend to pay more for insurance due to their lack of driving experience. The average annual rate for a 16-year-old driver is $2649.93, while for a 22-year-old, it is $943. As drivers mature, the costs decrease, with the average cost for drivers aged 30-59 being $885, and for those aged 60 and above, it is $887.

Cost of Car Insurance by Gender and Marital Status

Gender also plays a role in determining insurance rates in North Carolina, although not as heavily as other factors. On average, men pay $859.45 per year, while women pay $863.11. Marital status can result in slight differences in rates, with married drivers paying approximately $7 less per year than unmarried drivers.

Cost of Car Insurance After a Violation or Accident

Having an accident or traffic violation on your record will lead to higher insurance rates. An at-fault accident can increase rates by an average of $311.77 per year, while a DUI can result in an average increase of $792.25 per year. The cost of insurance after a violation or accident also varies by city, with the cheapest rates for drivers with a DUI being found in Newell, and the most expensive in Charlotte, Fort Bragg, and Pope Army Airfield.

Cost of Car Insurance by Credit Score

Your credit score is a significant factor in determining insurance rates in North Carolina. Drivers with excellent credit scores can expect to pay around $834 per year, while those with good credit scores will pay around $867. Drivers with poor credit scores will pay significantly more, with an average annual premium of $1006.

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