Before registering a vehicle in North Carolina, drivers are required by law to carry both liability and uninsured/underinsured motorist insurance coverage.
Discover if you are overpaying for car insurance below.
Most U.S. states require drivers to meet minimum auto insurance requirements when registering a vehicle — and North Carolina is no exception. In addition, North Carolina is an at-fault state, which influences the types of coverage required before you can legally hit the road.
In this article, our MarketWatch Guides team will go over North Carolina car insurance requirements, as well as the penalties associated with driving without sufficient insurance coverage. We’ve also ranked the best car insurance companies in North Carolina for both minimum and full coverage to help you choose what best suits your needs.
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What Are North Carolina’s Car Insurance Requirements?
Drivers are required by law in North Carolina to purchase both bodily injury and property damage liability, as well as uninsured/underinsured motorist bodily injury and property damage coverage with limits of 30/60/25. Below is a breakdown of each type of coverage and the minimum coverage limits:
- $30,000 in bodily injury coverage per person
- $60,000 in bodily injury coverage per accident
- $25,000 in property damage coverage per accident
These categories and amounts apply to both liability coverage and underinsured/uninsured motorist coverage in North Carolina. If you’re found to be the at-fault driver in a car accident, liability insurance coverage will pay the cost of the other party’s personal injuries and property damage. Uninsured/underinsured motorist coverage will protect you if you suffer injuries or damage in an accident with someone who lacks proper insurance coverage.
Maintaining Your North Carolina Car Insurance Coverage
If you cancel, refuse to renew or let your car insurance coverage lapse, your chosen insurance provider is required by law to notify the North Carolina Division of Motor Vehicles (DMV). The DMV must then notify you and provide advice on what action, if any, is needed in the case that you incur a penalty. Failure to respond to this notice can result in your license plate being revoked.
Relicensing your vehicle after a lapse in auto insurance coverage will require you to pay a $50, $100 or $150 civil penalty, depending on prior offenses. You must also pay a $50 restoration fee at the time of your vehicle registration renewal.
Penalties for Driving Without Car Insurance in North Carolina
According to North Carolina law, driving without proof of insurance is considered a class 3 misdemeanor and is subject to a consequence of up to 20 days of community punishment, probation or jail time.
If you’re in an accident without car insurance in North Carolina, your vehicle registration will be suspended for 30 days. You must obtain insurance and pay a restoration fee of $50 following this suspension in order to register your vehicle again.
North Carolina Car Insurance: Cost
The average cost of a minimum-coverage car insurance policy in North Carolina is $42 per month or $503 per year according to estimates from Quadrant Information Services. This is slightly cheaper than the national average for minimum coverage of $53 per month or $635 per year.
Full-coverage insurance in North Carolina costs an average of $114 per month or $1,368 per year. This is slightly lower than the national average of $144 per month or $1,730 per year for a full-coverage auto insurance policy.
Cheapest Minimum Insurance Coverage in North Carolina
Nationwide, Erie and North Carolina Farm Bureau typically offer the cheapest minimum-coverage auto insurance policies in accordance with North Carolina’s minimum coverage requirements. All providers listed below offer average insurance costs that are cheaper than the national average of $53 per month. Average costs are based on a 35-year-old driver with good credit and a clean driving record.
| Car Insurance Provider | Average Monthly Cost | Average Annual Cost |
|---|---|---|
| Nationwide | $27 | $321 |
| Erie | $29 | $346 |
| North Carolina Farm Bureau | $33 | $394 |
| State Farm | $37 | $440 |
| National General | $40 | $480 |
Cheapest Full Insurance Coverage in North Carolina
Nationwide, Erie and North Carolina Farm Bureau also provide the cheapest average full-coverage rates to North Carolina drivers. Full-coverage insurance typically provides comprehensive and collision coverage in addition to the required coverages in North Carolina. All providers listed below offer full-coverage auto insurance premiums that are considerably lower than the national average of $144 per month.
| Car Insurance Provider | Average Monthly Cost | Average Annual Cost |
|---|---|---|
| Nationwide | $81 | $968 |
| Erie | $82 | $984 |
| North Carolina Farm Bureau | $93 | $1,114 |
| Geico | $98 | $1,169 |
| State Farm | $98 | $1,176 |
Optional Car Insurance Coverage in North Carolina
In addition to the coverage required by North Carolina car insurance laws, there are other standard types of insurance that are optional but worth consideration, such as:
- Collision coverage: This liability policy takes care of repairs and vehicle replacement after events such as an accident, hit-and-run or collision with a stationary object such as a tree or fence.
- Comprehensive coverage: This type of coverage protects your vehicle from damages not related to accidents, such as theft, vandalism, falling objects or natural disasters.
- Medical payments (MedPay): This coverage is available for drivers in at-fault states, such as North Carolina, and covers medical bills for you and your passengers after an accident.
Personal injury protection (PIP) is a standard type of medical expenses coverage in many states, but it’s not available in North Carolina.
North Carolina Car Insurance Requirements: The Bottom Line
In order to meet North Carolina auto insurance requirements, drivers need bodily injury liability and property damage liability coverage in addition to uninsured/underinsured motorist coverage, both with minimum limits of 30/60/25. While these are the only coverages required by law, North Carolina drivers can benefit from other, optional types of coverage that provide additional protection.
Top Auto Insurance Recommendations
As a driver in North Carolina, finding the best auto insurance provider for your circumstances requires comparing car insurance quotes from various insurers. We suggest reaching out to two of our top-ranking providers: Erie and State Farm.
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Erie: Affordable for Basic Coverage
In our industry-wide review, our team recognized Erie Insurance as one the most affordable options for basic coverage. We recommend the company as a reliable option for North Carolina drivers because of its low rates, solid coverage options and excellent customer service.
In addition to standard insurance coverages, Erie provides options such as pet coverage, auto glass repair and personal item coverage. Car insurance discounts offered through Erie include those for safe driving, safety equipment, multi-car, multi-policy, reduced usage and more.
Keep reading: Erie insurance review
State Farm: Editor’s Choice
The National Association of Insurance Commissioners (NAIC) states that State Farm accounts for 15.9% of auto insurance premiums sold in the U.S., which is more than any other insurance provider on the market today. Our team has chosen State Farm as our Editor’s Choice due to its variety of coverage options, overall cost, industry reputation and customer service.
State Farm offers insurance add-ons such as roadside assistance and rental car reimbursement. It also offers a telematics insurance program called Drive Safe & Save™ that offers up to a 30% discount on your insurance policy for safe driving habits.
Keep reading: State Farm insurance review
North Carolina Car Insurance Requirements: FAQ
Below are frequently asked questions about North Carolina car insurance requirements.
A North Carolina driver’s insurance must include both liability and uninsured/underinsured motorist coverage. The minimum requirements in terms of liability limits are $30,000 in bodily injury coverage per person and $60,000 per accident. You also need $25,000 in property damage coverage. These limits apply to both liability and uninsured/underinsured motorist coverage.
The average cost of a minimum-coverage policy in North Carolina is $42 per month or $503 per year. The average cost of a full-coverage insurance plan is $114 per month or $1,368 per year. The average cost in North Carolina is significantly less than the national average.
It’s illegal to drive in North Carolina without car insurance. Driving in North Carolina without insurance is considered a class 3 misdemeanor, and an uninsured driver could face up to 20 days of community service, probation or jail time.
Our Methodology
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
