All drivers in North Carolina are required by law to cover the cost of any damage or injuries that are a result of an automobile accident they caused. The smart way to take care of this issue is to have a good car insurance policy.

 

Does Law require Auto Insurance in North Carolina?

 

North Carolina residents who drive are required to have liability auto insurance. This type of coverage pays for damage or injuries caused by a car accident for which you are at fault.

 

There are different types of liability auto insurance coverage you can choose from, but here are the minimum requirements for liability coverage for all North Carolina drivers.

 

• $30,000 for bodily injury liability, per person, per accident.
• $60,000 of bodily injury liability total per accident.
• $25,000 of property damage liability, per accident.

 

It is also required by law that all drivers in North Carolina purchase uninsured motorist coverage. The type of insurance helps pay for your injuries which occurred due to an automobile accident that with an uninsured driver.

 

The same minimum coverage requirements apply for uninsured motorist coverage as with bodily injury liability insurance.

 

Proof of Auto Insurance is Required by Law

 

It is also required by law that you have proof of insurance if you are a driver in North Carolina. Proof of insurance can be any of the following:

 

• A DL-123 form that is issued by your insurance agent which certifies what your current insurance policy is.
• The actual North Carolina insurance policy.
• An insurance binder.
• Insurance card.

 

If you do not have proof of insurance because you allowed your coverage to lapse, your insurance company will alert the DMV in North Carolina. You will receive an FS 5-7 form by mail. You will then have just ten days to mail the formback along with your insurance information.

 

Failure to do this could result in you being subject to fines and penalties, or you may even have your license plates revoked for as long as 30 days.

 

If your license plates are revoked, you can get them back after the 30-day period has passed. You can do this by paying for the license plate fee, paying any feesthat relate to the insurance violation, and submitting an FS-1 as proof of insurance.

 

What Happens if you Are CaughtDriving without Proof of Auto Insurance?

 

The punishment that you receive if you are caught driving without proof of insurance can vary depending on whether it is your first, second, or third offense.

 

For a first offense, drivers face a $50 fine, probation 1 to 45 days, a 30-day registration suspension, and a $30 reinstatement fee.

 

For a second offense within three years, you will receive a $100 fine, probation or imprisonment between 1 and 45 days, a 30-day registration suspension and a $50 reinstatement fee.

 

For a third offense of driving without proof of insurance, if it is within three years, you will receive a $150 fine, probation or imprisonment between 1 and 45 days, a 30-day registration suspension ad a $50 reinstatement fee.

 

Can High-Risk Drivers Get Auto Insurance in North Carolina?

 

The North Carolina Reinsurance Facility (NCRF) ensures that all drivers are allowed to purchase car insurance, even if they are considered high-risk drivers. These drivers will pay more for their premiums, but no company can deny them coverage.

 

The type of coverage that a high-risk driver is eligible for include the following:

 

• $100,000 of bodily injury liability per person, per accident.
• $300,000 of bodily injury liability total per accident.
• $50,000 of property damage liability per accident.
• $2,000 for medical payments.
• $1,000,000 for uninsured drivers.

 

Many high-risk drivers may try to avoid getting car insurance because of the high price of the policy. But that isn’t a good idea. You will only end up paying out higher fees if you happen to get caught.

 

Final Thoughts

 

Obeying the local car insurance laws for North Carolina can help save drivers a lot of money and aggravation. Paying for car insurance may seem like a huge burden for some individuals. However, when you consider the price you must pay if you are caught driving without proof of insurance, your car insurance premium no longer seems as expensive.

 

To learn more about auto insurance laws in North Carolina, contact the professionals with ProtetiveAgency.comat (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.