North Carolina Minimum Coverage Car Insurance: Requirements and Costs (December 2024)

North Carolina's minimum coverage car insurance limits are 30/60/25. Minimum car insurance costs around $568 annually or about $47 monthly.

Updated: December 10, 2024

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North Carolina requires drivers to have minimum car insurance, including $30,000 for bodily injury per person, $60,000 for bodily injury per accident and $25,000 for property damage per accident. Uninsured/underinsured motorist coverage is also mandated, matching the liability limits.

As North Carolina follows an at-fault insurance system, the responsible driver must cover the damage. Minimum coverage car insurance costs about $47 per month, making it a budget-friendly option. Consider exploring the cheapest car insurance in North Carolina.

TABLE OF CONTENTS

North Carolina Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in North Carolina
Cheapest Companies in North Carolina for Minimum Coverage
Add-On Coverages in North Carolina
Penalties for Driving Without Insurance in North Carolina
FAQ

Why Trust MoneyGeek? We analyzed data from Quadrant Information Services and the North Carolina Department of Insurance to get the most accurate cost data for a range of North Carolina drivers.

These rates reflect the cost of minimum coverage car insurance requirements in North Carolina as of December 2024.

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North Carolina Minimum Coverage Car Insurance Requirements

In North Carolina, drivers must have minimum auto insurance coverage to legally operate a vehicle. The following are the required minimums:

$30,000 for bodily injury liability per person
$60,000 for bodily injury liability per accident
$25,000 for property damage liability per accident
$30,000 uninsured motorist bodily injury per person
$60,000 uninsured motorist bodily injury per accident
$25,000 uninsured/underinsured property damage coverage

North Carolina's fault-based system affects premiums. In a fault state, the driver responsible for an accident pays for the damage. Insurance companies typically determine payouts based on the driver's degree of fault in an incident.

DOES NORTH CAROLINA REQUIRE COLLISION AND COMPREHENSIVE COVERAGE?

North Carolina doesn't mandate collision or comprehensive insurance as part of its state minimum coverage. However, if you have a car loan or lease, the lender usually requires both types of insurance to protect their investment against damage from accidents, theft or natural disasters. If you own your car outright, consider these coverages based on your financial situation and vehicle's value.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you're at fault in an accident	Your injuries
Damage to another person’s property if you're at fault in an accident	Damage to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Repairs for weather-related accidents or if you were hit by an animal
	Property damage caused by uninsured/underinsured drivers, unless additional coverage is purchased

The table reflects North Carolina's minimum car insurance requirements, covering bodily injury and property damage liability. Your policy's terms and conditions outline the specific coverage details.

Average Cost of Minimum Coverage Car Insurance in North Carolina

In North Carolina, drivers aged 22-29 face the highest premiums, primarily because younger drivers are statistically more likely to be involved in accidents, making them a higher risk for insurers. The table below shows the average minimum coverage auto insurance costs in North Carolina by age group, showing how rates can differ with age.


22-29	$600	$50
30-59	$568	$47
60 +	$581	$48

Cheapest Companies for Minimum Coverage Car Insurance in North Carolina

In North Carolina, these are the most cost-effective options for minimum coverage:

North Carolina Farm Bureau: $265 per year; $22 per month
Erie: $300 per year; $25 per month

While affordability is crucial when choosing an insurance provider, selecting a policy that fits your needs is also important. Explore the best car insurance in North Carolina for more options.

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Age Group:30-59


North Carolina Farm Bureau	$265	$22
Erie	$300	$25
State Farm	$345	$29
Progressive	$502	$42
Nationwide	$529	$44
National General	$612	$51
GEICO	$689	$57
Allstate	$881	$73
Kemper	$993	$83

Optional Add-On Coverages in North Carolina

In North Carolina, drivers can opt for additional coverages like comprehensive, collision, uninsured/underinsured motorist, medical payments and rental reimbursement. These options aren't legally required but provide financial protection beyond the state-mandated minimum coverage. Assess how much car insurance you need to help select coverages to add.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured Motorist Coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance	Damage to your vehicle if you're at fault or damage that exceeds policy limits
Personal Injury Protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers, regardless of who's at fault	Vehicle damage or injuries to the other driver
Roadside Assistance	Services like towing, flat tire changes and jump-starts when your car breaks down	Cost of parts or repairs needed after the tow
Gap Insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen	Vehicle depreciation or overdue loan payments
Rental Car Reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event	Fuel, insurance or other rental extras
Collision Coverage	Repairs to your car after an accident, regardless of fault	Damage due to theft, vandalism or natural disasters
Comprehensive Coverage	Repairs to non-collision damage from events like theft, fire or hail	Damage from a collision or personal injuries
Towing and Labor Coverage	Towing and basic roadside assistance labor costs at the site of your vehicle's breakdown	More extensive repairs needed at a garage
Custom Parts and Equipment Coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems	Original parts that came with your vehicle
Accidental Death Coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident	Non-accidental deaths or injuries
Classic Car Insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars	Regular use, like your daily commute

Penalties for Driving Without Insurance in North Carolina

The cost of a ticket for driving without insurance in North Carolina can vary, depending on whether it's a first-time offense or if you've been caught before. Penalties are less severe for first-time offenders but still include a substantial fine. Repeat offenders face higher fines and harsher penalties. Additional penalties for driving without insurance in North Carolina may include:

Confiscation of license plates: Driving your car without a license plate is illegal.
Three-month license suspension: If you're involved in an accident, your license may be suspended for three months.
Reinstatement fees for vehicle registration and driver’s license: You have to pay fees before you can get your vehicle registration and driver's license reinstated.
Mandatory liability insurance monitoring: You must file an FS-1, which is a form proving that you have liability insurance.

Driving with at least minimum car insurance coverage in North Carolina isn't just a legal requirement but also essential for financial protection. It helps cover costs for damage or injuries you may cause in an accident. Stay legal on the road to avoid these penalties and ensure you're covered when it counts.

What to Do if Your Policy Is Canceled

After a car insurance policy is canceled, seek a new one to stay legal. Contact your insurance agent to understand the reason for the cancellation and explore new coverage options. Shopping with different companies can help you find a policy that meets your needs.

The North Carolina Division of Motor Vehicles (NC DMV) is notified if you become uninsured due to cancellation. The DMV takes this seriously, as driving without insurance is illegal in North Carolina. If they discover you lack insurance, they may impose fines, revoke your vehicle registration, or enforce other penalties.

Consider the North Carolina Reinsurance Facility if you have trouble getting coverage through standard options. This entity provides a safety net for drivers unable to secure insurance through traditional channels, ensuring everyone can access the minimum required coverage. Always maintain at least minimum coverage auto insurance, as driving without it is risky and against the law.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in North Carolina may have been canceled for a few reasons:

Non-Payment: If you didn't pay your premiums on time, the insurance company might cancel your policy.
License Suspension: Losing your driving privileges due to infractions can lead to cancellation.
Fraud: Providing false information or lying to your insurance company can result in a canceled policy.
High Risk: If you’ve had many accidents or violations, you may be deemed too high risk to insure.
Vehicle Issues: Insuring a car that doesn't meet safety standards or is often stolen could lead to policy cancellation.

FAQ: North Carolina Minimum Coverage Car Insurance

We answered common questions about minimum coverage in North Carolina to help you understand the car insurance needed to comply with state laws.

What is the minimum car insurance coverage in North Carolina?

The minimum coverage auto insurance requirements in North Carolina are $30,000 for bodily injury liability per person, $60,000 for bodily injury liability per accident and $25,000 for property damage liability per accident. Drivers must also carry uninsured/underinsured motorist coverage with equal limits of $30,000 per person, $60,000 per accident and $25,000 for property damage. This basic coverage ensures drivers have financial protection in case of an accident.

Why does North Carolina require minimum automobile liability coverage for motorists?

Minimum coverage auto insurance is crucial for managing driving risks. In North Carolina, it's a legal requirement that covers potential costs for injuries or damage you may cause in an accident. This basic coverage promotes public safety by ensuring protection for everyone on the road.

Do you need comprehensive insurance in North Carolina?

North Carolina doesn't legally require comprehensive insurance. However, protecting your vehicle from non-collision events like theft or natural disasters is a wise investment. Your lender may mandate it if you're financing or leasing your car. Comprehensive insurance goes beyond the protection offered by minimum coverage, covering incidents that other policies don't.

What happens if you drive uninsured in North Carolina?

Driving uninsured in North Carolina can lead to severe penalties, including fines, license suspension and revocation of vehicle registration. You may face a civil penalty of $50 for a first lapse in coverage, which escalates with subsequent lapses. Additionally, reinstating your driving privileges could incur fees of up to $100, and obtaining a particular insurance form (FS-1) is required to prove future financial responsibility.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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