What is the penalty for driving without insurance in North Carolina?

Car insurance in North Carolina costs $40 per month, on average, or $477 per year. The average cost of car insurance in North Carolina is 34% lower than the national average auto insurance premium, and North Carolina ranks 13 out of 50 for the most affordable car insurance rates in the U.S.… read full answer

Average Cost of Car Insurance in North Carolina by Category

• Clean driving record: $466 per year
• After an at-fault accident: $761 per year
• Driver with poor credit: $613 per year
• Teen driver: $1,110 per year
• After a DUI: $1,860 per year

There are several factors that affect how much you’ll pay for car insurance in North Carolina, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from. On average, the cheapest insurance companies in North Carolina are Geico, Erie, and North Carolina Farm Bureau. But every insurer has their own way of calculating premiums, so it’s a good idea to get quotes from at least three different companies to make sure you find the best deal.

Finally, it’s worth noting that car insurance premiums in North Carolina are low, compared to the cost of coverage in neighboring states like South Carolina and Georgia. You can find more details in the table below.

Cost of Car Insurance in North Carolina vs. Neighboring States

Yes, uninsured motorist coverage is required in North Carolina. Drivers in North Carolina must purchase at least $30,000 in uninsured motorist bodily injury coverage per person (up to $60,000 per accident), as well as $25,000 in uninsured motorist property damage insurance per accident. Additionally, North Carolina drivers need $30,000 in underinsured motorist bodily injury coverage per person (up to $60,000 per accident), as well as $25,000 in underinsured motorist property damage insurance per accident.… read full answer

Uninsured/underinsured motorist insurance covers a driver’s medical bills and repair costs after an accident if the at-fault driver doesn’t have enough coverage to pay for the damage. Normally, a North Carolina driver can collect damages from the at-fault driver’s liability insurance. However, if the other driver is uninsured, getting compensation can be time-consuming or nearly impossible. That’s where uninsured motorist coverage can help. Instead of having to file a lawsuit, you can file a claim with your own insurance company in order to pay your bills and get the repairs or treatment you need without waiting for the courts.

Even though car insurance is required in North Carolina, an average of 7% of drivers in the state don’t have car insurance. Car accidents in North Carolina can be extremely expensive, too. For example, fatal accidents in North Carolina have a total cost of $2.26 billion each year. As a result, uninsured motorist insurance is a smart investment for North Carolina drivers.

Key Facts About Uninsured Motorist Coverage in North Carolina:

• Minimum Uninsured Motorist Bodily Injury: $30,000 per person and up to $60,000 per accident
• Minimum Uninsured Motorist Property Damage: $25,000 per accident
• Minimum Underinsured Motorist Bodily Injury: $30,000 per person and up to $60,000 per accident
• Minimum Underinsured Motorist Property Damage: $25,000 per accident
• Uninsured Drivers on the Road: 7%
• Crashes per Year: $1.71 billion
• Odds of a Crash with an Uninsured Driver: 1 in 15

No, North Carolina is not a no-fault state. North Carolina is an at-fault (or “tort”) state. That means the driver who causes an accident uses their insurance to pay for the other driver’s bills from the collision. Police and insurance companies use the available evidence to decide who is at fault for the accident. Then the at-fault driver’s insurance pays to cover the other driver’s damages. Depending on their coverage, they might have insurance for their own damages, too.… read full answer

“Fault” can be shared by drivers – for example, one driver could be 20% responsible for an accident while the second driver is 80% responsible. North Carolina has contributory negligence laws. That means after an accident, you can collect damages proportionate to your fault in causing the crash. For example, if you're 99% at fault, you can get 1% from the other driver.

Why You Should Care That North Carolina is a Tort/Fault State

In tort states like North Carolina, medical coverage only pays out after fault has been determined. That means there are more legal hoops to jump through and a longer waiting period before fault is decided and a driver can get reimbursed. This type of system has other implications for drivers, too, including some that vary by state due to nuances in local car insurance laws.

Here’s what tort insurance means for North Carolina drivers:

• Tort insurance is typically cheaper than car insurance in no-fault states.
• Drivers can sue the at-fault party for almost any type of loss after their collision. This includes lost wages, emotional distress, and hospital bills that exceed the at-fault driver’s coverage.
• You can collect accident damages in proportion to your fault in the accident.
• North Carolina has a statute of limitations of 3 years after a car accident. That means you have 3 years from the time of the car accident to sue the at-fault driver, or vice versa.

North Carolina vs Other Tort/Fault States