In North Carolina, it is a legal requirement for drivers to have auto insurance. The state mandates that drivers carry a minimum amount of liability coverage and uninsured motorist coverage. This means that if a driver is found to be at fault in an accident, their liability insurance coverage will pay for the other party's injuries and property damage. If a driver is hit by someone without insurance, their uninsured motorist coverage will protect them. Family members are also covered by a driver's policy and should be listed as drivers.
Characteristics | Values |
---|---|
What is a listed driver? | A family member who is insured under your policy. |
Who can be a listed driver? | A person related to you by blood, marriage, or adoption who is a resident of your household. This includes a ward or foster child. |
Is it mandatory to list family members as drivers? | Yes. |
What happens if a family member is not listed? | Failure to do so could jeopardize your coverage. |
What happens if my son/daughter is going away to college? | Your company still must cover them as long as their permanent residence is your home. |
What You'll Learn
Liability insurance requirements
In North Carolina, drivers are legally required to carry a minimum amount of liability insurance. This includes bodily injury liability coverage, uninsured motorist bodily injury coverage, uninsured/underinsured motorist property damage coverage, and property damage liability coverage. The minimum legal requirements for each of these coverages are as follows:
- Bodily injury liability coverage: $30,000 per person and $60,000 per accident.
- Uninsured motorist bodily injury coverage: $30,000 per person and $60,000 per accident.
- Uninsured/underinsured motorist property damage coverage: $25,000.
- Property damage liability coverage: $25,000.
North Carolina drivers are also required to carry their insurance ID card with them while driving at all times and present it to a law enforcement officer upon request. The specific documents that are required to be presented include a DL-123 certification from an insurance agent, a copy of the policy declaration page, or an insurance binder copy.
In addition to the minimum liability insurance requirements, North Carolina drivers must also carry uninsured and underinsured motorist coverage. Uninsured motorist coverage provides legal protection for a driver if an uninsured driver causes an accident resulting in injuries. Underinsured motorist coverage protects a driver when the at-fault driver has insufficient insurance to cover all of the injured party's costs.
It is important to note that insurance policies in North Carolina are typically issued for six-month or one-year time frames and can be renewable.
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Uninsured/underinsured motorist coverage
In North Carolina, Uninsured Motorist (UM) coverage is a mandatory part of every car insurance policy. This coverage protects you and your passengers if you're injured by an uninsured at-fault driver. The minimum UM policy amount in the state is $30,000 per person and $60,000 per accident.
Underinsured Motorist Coverage (UIM) is optional in North Carolina and cannot be part of a minimum limits policy. UIM coverage can provide additional compensation if you're in an accident with a driver whose insurance coverage is insufficient to cover the costs of the damages. For example, if a driver with a UIM policy limit of $50,000 receives $20,000 from the at-fault driver, they might be eligible to collect up to $30,000 in additional compensation, depending on their medical bills and costs. It's important to note that even if the bills exceed the UIM policy limit, the difference between the at-fault driver's payment and the UIM policy limit is the maximum amount the injured policyholder can recover.
When purchasing car insurance in North Carolina, it's essential to carefully review the coverage options and choose the ones that best suit your needs. Consult with a skilled attorney who can guide you through the process and ensure your rights are protected.
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Collision and comprehensive coverage
Collision coverage is for physical damage to your covered vehicle caused by an impact with another vehicle or object. This coverage pays the lesser of the cost of repair or the actual cash value (ACV) of your automobile.
Comprehensive coverage, also known as "other-than-collision" (OTC) coverage, is for repairing damage to your vehicle caused by non-collision-related incidents. For example, this coverage applies if your vehicle is damaged by missiles, falling objects, fire, theft, larceny, explosion, earthquake, windstorm, hail, water, flood, malicious mischief, civil commotion, contact with a bird or animal, or breakage of glass. Like collision coverage, comprehensive coverage is generally subject to a deductible.
If you are paying off a loan for the car you are driving, you will be required by the financier to have both collision and comprehensive coverage. If you are leasing a car, you will also be required to have these coverages on top of the state minimum.
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Proof of insurance
In North Carolina, drivers are required to have liability insurance and uninsured motorist coverage. This basic personal auto insurance is mandated by the state, and policies are typically issued for six-month or one-year periods with the option to renew.
Understanding Proof of Insurance
What to Carry With You
In North Carolina, it is essential to keep proof of insurance in your vehicle at all times. The most common form of proof is your insurance card, which your insurance company typically provides. This card should be kept in your car and include the following information:
- The insurance company's name and contact information
- The policy number
- Effective dates of the policy
- Vehicle information, including the make, model, and Vehicle Identification Number (VIN)
- Names of all listed drivers on the policy
Digital Proof of Insurance
In addition to a physical insurance card, many insurance companies now offer digital proof of insurance. This can be accessed through a mobile app or an electronic version sent to your email. Having digital proof is convenient and ensures you always have access to it when needed.
When You May Need to Provide Proof of Insurance
There are several scenarios in which you may be required to show proof of insurance:
- During a traffic stop: If a law enforcement officer pulls you over, they will likely request proof of insurance along with your driver's license.
- After an accident: In the event of a collision, exchanging insurance information with the other driver(s) involved is standard procedure. Providing proof of insurance ensures all parties have the necessary details for filing claims.
- Registering your vehicle: When registering a vehicle in North Carolina, you will need to present proof of insurance to the DMV.
- Renewing your registration: Proof of insurance is also required when renewing your vehicle registration each year.
- Changing your policy: If you make changes to your insurance policy, such as adding or removing a vehicle or driver, you may need to provide updated proof of insurance to the DMV.
Penalties for Not Having Insurance or Proof
Driving without insurance or failing to provide proof of insurance in North Carolina can result in penalties. These may include fines, suspension of your driver's license, or even jail time for repeat offences. It is essential to maintain active insurance coverage and always have proof of insurance readily available.
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Penalties for driving without insurance
Driving without insurance in North Carolina is a serious offence and can result in various penalties, including fines, license suspension, and even jail time. Here is an overview of the potential consequences for driving without insurance in the state of North Carolina:
First Offence
For a first-time offender, driving without insurance is considered a Class 1 misdemeanour in North Carolina. The penalties include a civil penalty fine of $50, probation of up to 45 days, and a $50 license reinstatement fee. The state may also suspend your registration and license plates for 30 days until you can provide proof of insurance.
Second Offence
For a second offence within three years, the penalties increase. The civil penalty fine rises to $100, and the state will again suspend your registration and license plates for 30 days. You will need to pay the $50 reinstatement fee to get your license back. Additionally, you may face jail time or probation for up to 45 days.
Third and Subsequent Offences
For a third and subsequent offence within three years, the penalties become more severe. The civil penalty fine increases to $150, and your registration and license plates will be suspended for 30 days. You will need to pay the $50 reinstatement fee, and you may face jail time or probation for up to 45 days.
Accidents Without Insurance
If you are involved in an accident while driving without insurance in North Carolina, the consequences can be significant. Even if you are not at fault, you will likely receive a ticket for not having insurance and may have to pay towing and impound fees. If you are found to be at fault, you will be financially responsible for any property damage and medical costs of all parties involved. The financial burden can quickly escalate, especially if there are serious injuries.
License Plate Revocation
Failure to respond to the state's liability insurance termination notice within 10 days will result in license plate revocation. Additionally, you will need to pay a $50 fine to restore your license plate once you can provide proof of the state's minimum insurance coverage.
Fines and Costs
The fines and costs associated with driving without insurance in North Carolina can add up. The civil penalty fees range from $50 to $150, and there is a $50 license reinstatement fee for each offence. The average cost of car insurance in North Carolina is $143 per month for full coverage, so the penalties for driving without insurance could be more expensive than maintaining an insurance policy.
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Frequently asked questions
A listed driver is someone who is insured under your policy. This can include family members and foster children.
Yes, family members should be listed as drivers under your policy.
If you fail to notify your insurance company of a family member who is a resident of your household, your coverage could be jeopardized.
Driving without insurance in North Carolina is considered a class 3 misdemeanor and can result in up to 20 days of community service, probation, or jail time.
The minimum coverage required in North Carolina is $30,000 in bodily injury per person, $60,000 in bodily injury per accident, and $25,000 in property damage per accident.