No matter where you live in the US, you are required to meet the minimum liability insurance requirements for the state you live in, if you want to be able to drive a vehicle legally. Just as with every other state, North Carolina has its own specific requirements for auto insurance, and if these requirements are not met, it can result in the loss of your driving privileges and your vehicle registration for a certain period of time. This is something that is just not convenient for most of us, so it is important to always make sure that you carry the average car insurance in North Carolina.

What Do You Need?

Every driver who owns a vehicle must carry a certain amount of liability coverage or they can’t have their vehicles on the road legally. Drivers in North Carolina must carry bodily injury and property damage coverage (BI/PD). This type of coverage will take care of most of the expenses of the other party in an accident if you are the driver who is at fault. After all, if you cause damages, you are required to pay for them. The minimum liability coverage drivers in North Carolina need to have is $30,000 per person, $60,000 per accident, and $25,000 for property damage. This is also known as 30/60/25.

• In addition to the above coverage, average car insurance in North Carolina also must include protection for uninsured and/or underinsured drivers. This is necessary if you are in an accident and the other driver is not carrying enough, or any insurance which happens all too frequently. This is known as UM/UIM coverage and you must carry a minimum of $30,000 per person and $60,000 per accident.

You WILL be Reported if Your Policy Lapses

If your insurance policy lapses, your insurer is required by law to inform the North Carolina Department of Insurance and the Division of Motor Vehicles. Even if your policy is only cancelled temporarily, your insurer must report it. This is why it is so important to make sure that you always have your insurance payments in on time, and that you have an up-to-date insurance card in your vehicle at all times.

What Happens if Your Policy Lapses?

Once the North Carolina Division of Motor Vehicles has been made aware of the fact that your insurance has been cancelled or has lapsed, the Division will send you a notification. This is known as an FS 5-7 Notice, and you will be requested to provide your insurance policy information within 10 days from the date that is on the notice. If your insurance has lapsed, you must provide a re-certified Certificate of Insurance along with your FS 5-7, which you can get from your insurer. You will also be required to pay a monetary penalty for allowing your policy to lapse.

Additional Coverage

Just because you are required to have a certain amount of liability insurance, it doesn’t mean that you can’t, or shouldn’t have additional insurance coverage. The average car insurance in North Carolina that many drivers have includes coverage over and above the required amount. If you can afford it, this is something that you really should consider, because the more coverage you have, the better off you will be financially if you do end up having an accident. Some of the additional coverage you might want to consider having include:

• Personal Injury Protection (PIP) – This is also referred to as no-fault insurance. This type of coverage will take care of any of your own medical bills if you are in an accident, and it does not matter whose fault the accident is.
• Comprehensive and Collision – Many things are not covered by your state-required liability insurance. For instance, if your car is stolen, or damaged due to vandalism, comprehensive insurance will cover your replacement or repair costs. This coverage is also used if vehicles are hit while parked, or damaged due to severe weather, items falling on them, etc.

Many other things are not covered by basic insurance policies, and it is wise to have these added on. For instance, you may want to include insurance for towing and rental vehicles. If you were in an accident or break down on the side of the road, you are probably going to need to be towed, which can get expensive. If you have to rent a vehicle while yours is being repaired after an accident, you can have coverage for this as well.

Legislators Looking at Insurance Changes

A number of proposals have been put out there about changes some would like to see in the North Carolina insurance requirements. For instance, in 2011, it was proposed that rates be lowered for high risk drivers. Supporters of the higher rates for high risk drivers don’t agree that this is necessary, while various insurance companies are undecided. The problem with the proposal is that it would raise the rates of other drivers who are not high risk, which they do not feel is fair.

Another proposed legislation would get rid of the Rate Bureau, and let insurers decide whether or not they want to increase their rates by as much as 15 percent per year without having to apply for permission to do so. Currently, the rates on insurance premiums in North Carolina are some of the lowest in the United States. The system is going to be studied this year to decide whether or not any changes are actually needed.

Getting the Best Rates

Even though you are probably already getting good rates on insurance premiums since you live in North Carolina, there are ways that you can get even better rates. Having an excellent driving record is one way. You can also lower your rates by taking a driver training course. You also need to make sure that you get quotes from a variety of insurers, as they are not required to charge the same rates for insurance products. We can get free quotes for you, and you just have to fill out a short online form letting us know what your requirements are. Then you can see about getting better than average car insurance in North Carolina.