North Carolina Auto Insurance Quotes and Coverage Guide

North Carolina Motor Vehicle Insurance Questions & Answers

Q: Is auto insurance mandatory?

A: Yes. Unless you live in Mayberry, where Barney will overlook any driving infraction if you appeal to his vanity, but in the rest of the state, North Carolina law requires the registered owner of a motor vehicle to maintain continuous insurance coverage as long as there is a valid license plate for that vehicle.

Q: Is North Carolina a "tort" state?

A: Yes. North Carolina’s insurance system is based on the tort system in which there are no restrictions on lawsuits. This means you could get your suspenders sued off if you run over Aunt Bea in her Buick while you’re trying to avoid Otis crossing the road in a drunken stupor. Aunt Bea can get you for pain and suffering, as well as for any out-of-pocket medical expenses she had to pay to get her whiplash treated.

Q: What type of insurance is required to purchase and maintain a North Carolina tag and registration?

A: The minimum requirements of liability for private passenger vehicles are $25,000 for bodily injury for one person; $50,000 bodily injury for two or more people and up to $15,000 to cover the prize-winning rosebushes you destroyed in Aunt Bea’s front yard.

Q: Are all insurance companies accepted in North Carolina?

A: Liability coverage must be continuously maintained with a company licensed and authorized to do business in this state – with the exception of those in Mayberry.

Q: Is there a penalty for a lapse of liability insurance coverage?

A: If you change insurance carriers or you have a lapse of coverage, your insurance company is required by law to notify the DMV. When the DMV receives this information, they are required to send Form FS 5-7 Notice, and you are required to respond within 10 days.

If there has been a break in coverage, you must re-certify with the correct insurance information and submit payment of $50 within 10 days from the date of the letter in order to retain your license plate. Failure to respond within the required time can result in the loss of your license plate for 30 days and community service of helping Aunt Bea re-plant her rosebushes, or worse – cleaning the jail cell after Otis sobers up and leaves.

Q: Should a license plate be surrendered when insurance has been discontinued?

A: A license plate must be surrendered whenever insurance has been deleted for any reason, no matter what Barney has told you.

Q: I feel the termination of insurance is unjustified. Do I have any recourse?

A: An insurance hearing may be requested if or when you feel the action is unjustified, or when circumstances were beyond your control. You’ll have to wait until Howard’s hearing is finished, though, and you know how long-winded he is.

Q: How can I own a vehicle and not need insurance?

A: Since the North Carolina Department of Motor Vehicles, for some reason, just absolutely refuses to accept a written note from Aunt Bea or even from Andy that you no longer drive, you must cancel your registration and turn in your tag to the Driver's License or Tag Office. And don’t tell Barney – he’ll be mad you didn’t get a note from him.