Car insurance in North Carolina is mandatory, as the state requires continuous liability coverage on all vehicles with valid license plates. As such, drivers may purchase full coverage car insurance if they wish to receive added financial protection in the event of an accident, or they may get car insurance that meets the state’s minimum liability requirements. However, customers cannot buy auto insurance from out-of-state providers unless the company is licensed in North Carolina. Alternately, drivers can find cheap auto insurance quotes online. To get started, drivers can save money by comparing auto insurance quotes here. Learn more about getting car insurance in NC by reviewing the sections below.
North Carolina Car Insurance Requirements
Continuous liability auto insurance coverage is a requirement under North Carolina law. As such, all car owners must maintain an active insurance policy on any automobile with valid license plates or they will need to pay a civil penalty fee of $50 (for the first lapse), $100 (for the second lapse) and $150 for any subsequent lapses within a three-year period. If there is a lapse in car insurance coverage, or if drivers do not purchase a new policy before canceling their old plan, the North Carolina auto insurance provider must notify the state Division of Motor Vehicles (NCDMV) as soon as the policy cancels. Then, the NCDMV sends vehicle owners a liability insurance termination notice (Form FS 5-7), which car owners must respond to within 10 days. If drivers believe that the motor vehicle insurance termination was a mistake, they must have their provider submit an electronic certificate of insurance (Form FS-1) to the NCDMV. To avoid lapses in automobile insurance coverage, drivers can get affordable car insurance quotes online here.
If car owners do cancel their North Carolina car insurance policy, however, they must surrender their vehicle’s current license plates by mailing them to the NCDMV Vehicle Registration Section in Raleigh, or they may return them in person at any license plate agency in the state. If motorists buy auto insurance before canceling their old policy, they may transfer their vehicle’s current plates to another automobile, rather than surrendering their plates to the NCDMV.
Note: Failure to pay an NC car insurance civil penalty fee may result in the revocation of a vehicle’s license plates and additional penalties and/or fees.
Minimum North Carolina Car Insurance Amounts
Car owners may purchase discount auto insurance or they may obtain a full-price policy, as long as the motor vehicle insurance plan covers property damage limits, minimum bodily injury and coverage for uninsured/underinsured drivers. When drivers compare auto insurance in NC, they must verify that their policy meets the following requirements:
- $30,000 for the bodily injury of one person
- $60,000 for the bodily injury of two or more people
- $25,000 for property damages
- Uninsured/underinsurance coverage
Whether drivers purchase the cheapest auto insurance plan they can find, or they obtain a more comprehensive full-coverage car insurance policy, they must maintain continuous liability coverage on their vehicle. To get started, car owners can search for NC auto insurance quotes online here.
How much is car insurance in North Carolina?
North Carolina auto insurance rates vary depending on several factors, including the driving history of the motorist, the automobile type and whether the policy provides full-coverage vehicle insurance or not. As such, several factors affecting car insurance rates include the following:
- The driver record of the vehicle owner – in many cases, NC car insurance providers use a 3 or 7-year driving record to determine insurance rates
- Location – North Carolina car insurance prices are often more expensive in urban areas than in rural parts of the state
- The vehicle type – sports cars are generally more expensive to insure than standard vehicles such as sedans
- Vehicle use – the more a car owner drives his or her vehicle, the more expensive the insurance premium will be
- Inexperienced operators – if a motorist adds an inexperienced driver with less than three years of driving experience to his or her auto insurance policy, it will significantly increase insurance premiums
Additionally, a driver’s car insurance cost varies depending on the specific type of point system the insurance provider uses. Many North Carolina auto insurance providers use the North Carolina Safe Driver Incentive Plan (SDIP), which rewards safe motorists with lower insurance premiums. Vehicle insurance rates may also vary depending on the credit score of the car owner. For additional information on auto insurance prices and the ways in which point systems affect car insurance rates, vehicle owners must contact their insurance agent directly.
To find the best car insurance policy to fit nearly any budget, car owners can get car insurance quotes online here.
Where can I find discount auto insurance in North Carolina?
“What is the cheapest car insurance in North Carolina?”, drivers may wonder. If car owners are searching for cheap car insurance quotes, it is important to shop around and ask plenty of questions pertaining to the discounts or credits the company may offer. Whether motorists purchase online car insurance that meets minimum state requirements, or they purchase a comprehensive full coverage auto insurance policy, it is important to keep the following questions in mind:
- Does the company provide discounts to customers who agree to an electronic funds transfer?
- Are there discounts for drivers with clean driving records?
- Are there discounts for mature drivers over 55 years of age?
- Can customers increase their deductibles to lower their monthly insurance premium?
- Can customers pay their insurance premium in full?
Before getting auto insurance in North Carolina, car owners can save money by comparing affordable auto insurance quotes online here.
How to Get Car Insurance in North Carolina
There are several ways to get car insurance, including online. However, all online car insurance providers must be licensed in the state of North Carolina. The DMV does not accept out-of-state auto insurance policies. For this reason, it is important to compare auto insurance policies, shop around and ask plenty of questions before purchasing a new policy. Additionally, car owners must decide whether they wish to buy full-coverage auto insurance or basic liability coverage. A full-coverage vehicle insurance policy often covers the following:
- Collision coverage – depending on the lender (if applicable), collision coverage may be a car insurance requirement
- Other than collision coverage (comprehensive insurance) – depending on the lender (if applicable), comprehensive coverage may be an insurance requirement
- Medical payments
To find an affordable car insurance policy in North Carolina, motorists can get started by comparing quotes online here.