A Guide to Understanding North Carolina's Auto Insurance Laws?

Answer 1

North Carolina's auto insurance laws require drivers who own a functioning vehicle to carry auto liability coverage for each vehicle that is registered in the state at all times. This coverage must provide protection against bodily injuries and property damage that are sustained in auto accidents. Proof of this coverage must be carried at all times by drivers who are traveling in North Carolina.

Moreover, North Carolina's auto insurance laws feature stiff penalties for drivers who choose not to comply with these auto insurance requirements. As a result, here is a guide to understanding auto insurance requirements in North Carolina that can help drivers avoid these penalties.

Drivers in North Carolina must purchase no less than $25,000 of property liability coverage.

The coverage must include provisions for damages sustained to vehicles that are damaged beyond repair in an auto accident. The coverage must also provide provisions for damages that are sustained by buildings in auto accidents. As a result, most auto insurance underwriters in North Carolina add these provisions to auto insurance policies as a matter of course.

Drivers in North Carolina must also purchase at least $60,000 of injury liability coverage.

At least $30,000 of this coverage must be set aside for bodily injuries that are sustained by one person in an accident. This coverage is required because it pays the medical expenses and rehabilitation costs for people who are injured in auto accidents.

Moreover, auto insurance companies in North Carolina must follow certain regulations.

For example, auto insurance companies in North Carolina are required to notify a branch of the Division of Motor Vehicles about any lapses in a driver's coverage. Moreover, North Carolina auto insurance providers must also send a driver a written notice of any lapses in coverage. These regulations are designed to help drivers avoid being penalized for not having adequate auto insurance coverage.

These penalties can be severe.

For example, North Carolina drivers who do not have adequate auto insurance coverage must pay a $50 fine and a vehicle re-certification fee. Drivers who fail to pay these fees could lose their license plates for 30 days.

Moreover, drivers who are involved in accident face stiff penalties. For example, many drivers lose their driver's license for 30 days. Other drivers receive up to 3 points on their driving record for each uninsured accident.

For more details about these requirements, please call the North Carolina Division of Motor Vehicles during normal business hours. The main office may be reached at (919)-715-7000. Moreover, North Carolina drivers may visit their local DMV office for more information.