Understanding North Carolina Auto Insurance Requirements: What You Need to Know

Each state has insurance requirements drivers must follow. North Carolina mandates that all drivers maintain minimum amounts of auto liability insurance. Your agent can help you shop around for compliant car insurance that meets your needs.   

North Carolina Auto Insurance Basics 

The following auto insurance coverage is required in North Carolina: 

• Liability insurance may help cover damages or injuries you cause to other people in an accident. This coverage does not cover damage to your own car or injuries.  
• Uninsured/underinsured motorist coverage may help provide financial protection if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover the damages, up to the policy’s limits.  

Minimum Coverage Limits in North Carolina 

North Carolina sets specific minimum limits for liability insurance that all drivers must meet. This is the maximum amount your insurer agrees to pay for third-party accident-related claims. 

Uninsured/underinsured motorist coverage limits are equal to the bodily injury and property damage liability limits. 

Adhering to these minimums might not be enough to fully protect you financially. If you’re in a major accident, the costs could easily exceed these minimum limits. You might want to increase your coverage limits to help protect yourself from potential lawsuits if you have significant assets. 

Although not required by North Carolina law, comprehensive and collision coverage can help provide financial protection for your vehicle. Comprehensive covers noncollision-related damage—such as theft or weather damage—and collision covers damage to your car in an accident. 

If you finance or lease your car, the lienholder has rules about which auto insurance policies you must maintain. Your agent can help you get a policy that meets North Carolina’s minimum limits and satisfies your lender’s requirements. 

You may also want to consider additional coverages such as: 

• Medical payments (MedPay) 
• Roadside assistance 
• Rental car coverage 
• Auto glass coverage 
• Guaranteed asset protection (GAP) insurance 

Staying informed about North Carolina’s auto insurance requirements is essential. State laws about auto insurance are subject to change at any time, so review your car insurance coverage limits with your agent periodically. 

Contact Us 

When designing an insurance plan, consider your individual circumstances and consult with insurance professionals to find appropriate coverage.  

Contact Amato Insurance Group in Havelock, North Carolina, for auto insurance tailored to your needs at a favorable rate. 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.