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Last updated: November 15, 2024
Penalties for Driving Without Insurance in North Carolina
Not having liability insurance in North Carolina could cost you.
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The average annual cost of car insurance in North Carolina is $1,240, which is about 36 percent lower than the national average. Despite this low rate, 10 percent of drivers on the road in North Carolina lack insurance. While that’s lower than the national average of 14 percent, driving without insurance is still illegal and could result in serious consequences.1 Penalties may include probation up to 45 days, license and registration suspension, fees of up to $200, and potentially thousands more if you’re at fault in an accident, as you’ll be financially responsible for all property damages and medical costs. We’ll review what happens if you’re caught driving without car insurance in North Carolina.
Editor’s note (last updated November, 2024): We have updated this guide with the latest fees, penalties, minimum requirements, and relevant contact information for driving without insurance in North Carolina.
Penalties for Driving Without Car 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.
| Infraction | Penalty2 |
|---|---|
| 1st insurance lapse | $50 |
| 2nd insurance lapse within 3 years of current lapse | $100 |
| 3rd and subsequent insurance lapses within 3 years of the current lapse | $150 |
| Failure to respond to liability insurance termination notification within 10 days | License plate revocation |
| Restoration fee | $50 |
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.
How to Appeal Fines
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.
How to Get Insurance After a Lapse
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.
SR-22s
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.
Minimum Coverage
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:
| Coverage | Minimum Limits (Until Dec. 31, 2024)5 |
|---|---|
| Bodily injury liability coverage | $30,000 per person
$60,000 per accident |
| Property damage | $25,000 |
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:
| Coverage | Minimum Limits Effective Jan. 1, 20256 |
|---|---|
| Bodily injury liability coverage | $50,000 per person
$100,000 per accident |
| Property damage | $25,000 (unchanged) |
FYI:
North Carolina’s original minimum insurance limits of $30,000/$60,000 were set in 1999. The increased requirements of $50,000/$100,000, which will be implemented starting July 1, 2025, were updated to reflect the rising costs of medical care, vehicle repairs, and other expenses related to accidents.
High-Risk Drivers
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.
NOTE:
All companies that are eligible to write auto insurance in North Carolina must be part of the NCRF. The NCRF keeps rates low for consumers and creates less risk for insurance companies. New Hampshire is the only other state in the U.S. that also uses reinsurance facilities, instead of requiring insurance companies to keep high-risk drivers on their books.
Registration
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
Conclusion
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.
Frequently Asked Questions
What is the grace period for car insurance in North Carolina?
If you are caught driving without insurance in North Carolina, the state will send you a liability insurance termination notification. From there, you have 10 days from the date printed on the notice to respond, notifying the state that you have purchased the minimum coverage it requires. If you don’t respond within this 10-day period, you’ll face a license revocation and fees of $50 to $150 for driving without insurance, plus a $50 license restoration fee, according to the North Carolina Division of Motor Vehicles.
Do you need insurance if you have a license but no car in North Carolina?
Yes, you need to have proof of liability insurance to get a driver’s license in North Carolina, even if you don’t own a car. To fulfill this requirement, you can buy a non-owner’s policy, which will be less expensive than a regular policy. Alternatively, if someone in your household owns a car, you can ask for them to add you as a named driver to their insurance policy.
What happens if the person at fault in an accident has no insurance in North Carolina?
If the person at fault in an accident has no insurance in North Carolina, they’d be financially responsible out of pocket for all of the property damage and medical costs of all parties outside of their car, as well as their own. Additionally, the no-fault party could sue them in civil court for compensation. If you get into an accident with someone with no insurance and they are at fault, your uninsured motorist coverage can also help pay for the damages.
Can you sue an uninsured driver in North Carolina?
You can sue an uninsured driver in North Carolina if you had 0 percent fault in the accident, in accordance with the state’s contributory negligence laws.
Senior Writer & Editor
A seasoned journalist and content strategist with over 10 years of editorial experience in digital media, Aliza Vigderman has written and edited hundreds of articles on the site, covering everything from plan coverages to discounts to state laws. Previously, she was a senior editor and industry analyst at the home and digital security website Security.org, previously called Security Baron. She has also contributed to The Huffington Post, SquareFoot, and Degreed. Aliza studied journalism at Brandeis University.
Citations
Facts + Statistics: Uninsured motorists. Insurance Information Institute. (2024).
https://www.iii.org/fact-statistic/facts-statistics-uninsured-motoristsInsurance Requirements. The Official North Carolina DMV Website. (2024).
https://www.ncdot.gov/dmv/title-registration/insurance-requirements/Pages/default.aspxArticle 13. The Vehicle Financial Responsibility Act of 1957. NCLeg.net. (2024).
https://www.ncleg.net/EnactedLegislation/Statutes/HTML/BySection/Chapter_20/GS_20-309.htmlTraffic Violations. North Carolina Judicial Branch. (2024).
https://www.nccourts.gov/help-topics/traffic-and-vehicles/traffic-violationsInsurance Requirements. The Official North Carolina DMV Webiste. (2024).
https://www.ncdot.gov/dmv/title-registration/insurance-requirements/Pages/default.aspxWill Raising Auto Insurance Minimums Increase Uninsured Drivers in North Carolina? Wallace Pierce Law. (2024, Oct 23).
https://www.wallacepierce.com/firm-news/2024/october/will-raising-auto-insurance-minimums-increase-un/
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