Penalties for Driving Without Insurance in North Carolina

Compared with other state laws governing driving without insurance, North Carolina’s penalties are relatively minor. At worst, if you’re convicted of driving without insurance for the third time within three years, you’ll face a $150 fee, plus a $50 restoration fee to reinstate your license and registration. Additionally, you may be subject to 45 days of probation or jail time, and your license and registration could be suspended for up to 30 days. Not responding to the state’s notice of insurance lapse within 10 days will lead to a license plate revocation. Plus, you’ll pay a $50 fine to restore your license plate once you prove you have the state’s minimum coverage.

The state will know whether you’re covered, because insurance companies are required to submit certificates of insurance (Form FS-1) to the North Carolina Division of Motor Vehicles electronically. Additionally, you’ll need to carry proof of auto insurance with you, either in the form of a physical ID card or a digital one accessible through your insurer’s website or mobile app.³ To find out if your insurance lapse has been cleared, you can call NC DMV at (919)-715-7000.

To dispute your misdemeanor fine after you’ve been found guilty in district court of driving without insurance, you can appeal to the Superior Court for a jury trial within 10 days of your conviction.⁴ The court will appoint you an attorney if you don’t hire a private lawyer, but you’ll have to file the motion yourself initially. If you are still found guilty or the case is thrown out of the Superior Court, you can appeal to the Court of Appeals.

Getting insurance after a lapse means comparing quotes from multiple providers and finding a company that will accept you as a lapsed customer at rates you can afford. As a starting point to your research, read our guide to the best auto insurance in North Carolina.

Unlike many states, North Carolina doesn’t require SR-22s, forms that prove you have the minimum amount of insurance the state requires after a license or registration reinstatement. Instead, North Carolina uses a similar form called the DL-123. If a driver’s situation requires DL-123 insurance, they can request it from their insurance company, which will generate the form and submit it to the North Carolina DMV.

To avoid the entire legal process, always carry at least the minimum car insurance North Carolina requires. North Carolina’s current minimum requirements are as follows:

Starting on January 1, 2025, however, Senate Bill 452 mandates all North Carolina drivers to carry higher minimum liability limits on their auto insurance. The new limits are:

Car insurance is more expensive for high-risk drivers in every state — and you’ll be considered a high-risk driver if you have a lapse in insurance. High-risk drivers also include everyone from people with bad driving records, like DWIs, to those with very little driving experience in the U.S., like people living in the U.S. without legal permission, or teen drivers.

North Carolina is one of two states that use reinsurance facilities. Insurance companies in North Carolina are allowed to transfer high-risk drivers to the North Carolina Reinsurance Facility (NCRF), a non-profit organization created to ensure that all drivers can get auto liability insurance, regardless of their risk profile. In doing so, insurance companies give up the premiums but share the risk with other member companies. In other words, reinsurance is like insurance for insurance companies.

Registering a vehicle in North Carolina requires proof of insurance, so if you don’t have insurance, you won’t be able to register your car. Here’s a list of the documents you’ll need when you register your vehicle at your local DMV.

• Vehicle title 
• MVR-1 Title Application: https://www.ncdot.gov/dmv/downloads/Documents/MVR-1.pdf
• MVR-180 Odometer Disclosure (if your vehicle is less than 10 years old): https://www.ncdot.gov/dmv/downloads/Documents/MVR-180.pdf
• North Carolina driver’s license or valid out-of-state driver’s license: If you have an out-of-state license, you will need a temporary North Carolina driver’s license via https://www.ncdot.gov/dmv/license-id/driver-licenses/Pages/issue.aspx.
• Proof of liability insurance coverage from a North Carolina insurer

Driving without car insurance in North Carolina isn’t worth it. Along with potential license suspension and fees, keep in mind that if you’re at fault in an accident, you’ll be responsible for covering all property damage and medical bills for everyone involved out of pocket.

And due to the state’s contributory negligence laws, if you’re at fault at all in an accident, even just 1 percent, you won’t be able to receive compensation in a civil suit. Paying for insurance now could save you thousands down the line and give you peace of mind on the road.