Does North Carolina have Mandatory Insurance Requirements for Licensing a Vehicle?

As a Burlington independent agent, we are often asked whether North Carolina has mandatory auto insurance requirements for licensing a vehicle? The answer is yes.

According to the North Carolina Division of Motor Vehicles, all registered owners must keep continuous liability coverage on any vehicles that currently have a valid license plate assigned. Failure to do so can lead to serious fines and/or having your license plate suspended.

It is also important to note that insurance companies are required to report any auto insurance policy cancelations to the Department of Transportation. This includes any lapses in coverage for failure to pay your bill on time. This is often handled by most insurance carriers via a system generated letter, which is then sent to the state. North Carolina keeps track of the number of "lapses" a registered owner has and issues fines accordingly.

The minimum required liability insurance for private vehicles in North Carolina is $30,000 for bodily injury for one person and $60,000 bodily injury for two or more people (to be split accordingly in the event of an accident. You must also carry $25,000 property damage coverage.

We are also often asked whether a person without a driver’s license who does not drive but owns a vehicle needs an auto insurance policy. The answer to this is also yes. According to the state, every registered vehicle must have an auto insurance liability policy. There are no exceptions to this guideline.

Those who own inoperable vehicles have the choice of turning in their license plates, deactivating their registration, and cancelling their liability insurance policy. All surrendered plates must be turned into the state prior to cancelling the insurance policy.

Mebane, Graham, and Burlington residents in need of auto insurance or are looking to find an independent agent may visit our website for more information.