Car Insurance In North Carolina 2026: Laws, Costs, Requirements & Companies

Having thoroughly looked at the North Carolina car insurance market, I’ve seen firsthand how changes to legislation, natural disaster risk, and driver behavior can influence car insurance. This guide is designed to provide North Carolina drivers with everything they need to know about the biggest risk factors in the state, what type of coverage they should consider, and what the costs will be.

Does North Carolina Require Car Insurance?

Yes, North Carolina requires that all drivers with a registered vehicle carry state minimum insurance coverage. Failure to do so can come with steep penalties.

As of July 1, 2025, North Carolina increased its mandatory minimum liability limits. This applies to any new or renewed insurance policy and requires:

• Bodily Injury Liability: $50,000 per person and $100,000 per accident.
• Property Damage Liability: $50,000 per accident (currently the highest minimum in the nation).
• Uninsured/Underinsured Motorist (UM/UIM) Bodily Injury: $50,000 per person and $100,000 per accident.
• Uninsured Motorist (UM) Property Damage: $50,000 per accident.

These changes have some of the highest state minimum requirements across the U.S. and have made mandatory the underinsured motorist coverage.

How Much Insurance Should You Get In North Carolina?

Still, there are many situations where drivers in North Carolina might consider optional coverage like Supplemental Uninsured/Underinsured Motorist (UM/UIM).

Supplemental Uninsured/Underinsured Motorist (UM/UIM

As an estimated 7.5% of all drivers in the state are uninsured, this type of policy can help protect you in the event that you are involved in an accident caused by an uninsured driver, something that’s quite common on the I-85 and I-40.

Full Comprehension And Collision Coverage

Full comprehension and collision coverage can be your only respite to protect against hurricane and tropical storm-related damage, like flooding or damage from windborne debris breaking a windshield or a car window. Similarly, there are thousands of deer strikes every year, according to the North Carolina Department of Transportation, and these types of single-vehicle incidents are not covered by state minimums.

Medical Payments (MedPay)

Medical Payments (MedPay) coverage can help with medical or funeral expenses for you and your passengers after an accident, no matter who was at fault, which is increasingly important in tourist-heavy areas like Asheville and the Outer Banks, where multi-car pileups are common.

How Much Is Car Insurance In North Carolina?

The average cost of car insurance in North Carolina is around $536 annually (~$45/month) for minimum state-mandated coverage and $1,816 to $1,860 annually (~$152–$155/month) for full coverage. Still, several other factors can influence cost.

• Low-Income / Minimum Coverage: There are no state-based programs for low-income drivers in North Carolina, but paying just the minimum requirement can give you rates around $40 per month.
• Non-Owner Car Insurance: For those who do not own a vehicle, the average cost is $25 per month ($302/year) for personal coverage, useful if you regularly borrow a vehicle or rent a vehicle.
• Temporary / Short-Term Insurance: Those drivers who only need short-term insurance can expect to pay around $430 for a standard 6-month term, which is the most common in North Carolina.
• Senior Car Insurance (Age 60-70): North Carolina Seniors can expect to pay around $29 per month for minimum coverage or $144 per month for full comp and collision.
• Teen Car Insurance (Age 16-19): Teen drivers in North Carolina pay some of the highest premiums because of their higher risk category, averaging around $158 per month for minimum coverage, or $300 per month for full coverage, assuming they are added to a parent’s policy and not taking out a policy on their own.
• SR-22 / High-Risk Filing: High-risk drivers, like those who have been previously caught without insurance and have to file an SR-22 certificate, can expect to pay an average of $59 per month for minimum coverage and $172 per month for full coverage.
• College Students / Young Adults (Age 20-25): As teenagers make their way to college or reach young adulthood, prices change; 25-year-olds pay an average of $55 per month for minimum coverage or $160 per month for full coverage.
• Bad Credit: State laws in North Carolina stipulate that a credit score does not have a high impact on insurance premiums, meaning that someone who has a poor credit score will see an increase of only around $5 per month as compared to someone with an excellent credit score.
• With a Speeding Ticket: If you are issued a citation for speeding, it can increase your premiums by up to 80% in large part because of a new Safe Driver Incentive Plan initiated by the state.

These figures are general estimates and can vary depending on the insurer and your personal driving profile.

Which Car Insurance Companies Operate In North Carolina?

North Carolina has some of the largest state-specific farm bureaus across the country, with a wide range of national carriers and regional providers, including the following:

• State Farm
• Nationwide
• Progressive
• GEICO
• Allstate
• Farmers Insurance
• Liberty Mutual
• Travelers
• USAA
• NC Farm Bureau Insurance
• Erie Insurance
• Auto-Owners Insurance
• National General Insurance
• Penn National Insurance
• The Hanover Insurance Group
• Selective Insurance
• Integon Insurance
• Direct Auto Insurance
• The General
• AAA Auto Insurance
• Heritage Insurance

Note: You can use the North Carolina Department of Insurance Company Search tool to find all licensed providers in the state.

Compare quotes and coverage details through Insuranceopedia to find the best fit for your needs.

How To Get Lower Insurance Premiums In North Carolina

Drivers in North Carolina can find many ways to reduce their premiums, including leveraging state-based opportunities and general strategies for improving driving behavior.

Leverage A “Prayer For Judgment Continued” (PJC)

Once every 3 to 5 years, North Carolina drivers have the legal option to ask a judge for a “prayer of judgment continued,” meaning that the guilty verdict for certain traffic violations can be suspended. This suspension means that no insurance or charges are applied to your premiums for that specific event. If you receive a speeding ticket, you can try to utilize this option, assuming you meet all other qualifications to avoid a price increase.

Take Advantage Of The Waivable Speeding Surcharge

North Carolina drivers can confirm with their insurance provider as to whether or not premiums will increase after receiving a speeding ticket. North Carolina’s law stipulates that anyone who receives a citation for driving 10 mph or less over the speed limit, assuming they’ve had no other violations over the last 5 years, should not see a price increase, so if this applies to you, you can reach out to your insurance provider about returning to your previous rate.

Request an SDIP Points Review

North Carolina relies on the Safe Driver Incentive Plan (SDIP) to determine what the insurance charges are after you get issued a citation or are involved in a car accident. If you review the points on your record and remove them through things like driver improvement courses, this can lead to lower premiums.

Student Discounts

If you are adding a policy for a teenager or a college student, there are many opportunities to save, starting with good student discounts on GPA that are typically 3.0 or higher, as well as students away from school discounts if your child lives more than 100 miles away and their car is at home.

Change Your Deductible

Premiums go up with lower deductibles and vice versa, so if you can change your out-of-pocket deductible from around $200 to $1,000, you might see a reduction in your monthly premiums by between 15% and 30%.

Check Annually

Before your current package expires, use tools like Insuranceopedia to compare prices from competing companies. Just because the insurance company you use currently is the one with whom you have your car insurance doesn’t mean that they will offer the best prices once your policy is renewed.

Audit Your Annual Mileage

Drivers throughout the state who work remotely or have any type of hybrid schedule can update their policy to reflect the commuter status. This type of low mileage status can typically provide discounts on premiums, especially if you drive fewer than 7,000 or 10,000 miles per year.

Proof Of Insurance In North Carolina

Registered vehicles in North Carolina must maintain liability coverage and carry a physical or digital card to prove that they have insurance. North Carolina drivers can show an FS-1 Form, which is an electronic Certificate of Insurance that your insurance provider sends to the DMV, a DL-123 Form, which is a certification that your insurance agent gives you, an official insurance card that displays things like your policy number and name, or a full copy of your insurance policy.

If you experience a lapse in your coverage, you have to notify the DMV in North Carolina immediately, after which they will send a liability insurance termination notice, or Form FS 5-7, giving you 10 days to get a new policy. If you failed to respond within that 10-day time frame, they can revoke your license plates and your registration for 30 days, and may choose to suspend your license as well.

If you don’t have insurance at all and you cause a car accident, you can face a class three misdemeanor, a permanent mark on your criminal record, and financial responsibility for any property damage and medical bills.

North Carolina State Driving Laws

North Carolina has many distinct driving regulations, particularly those having to do with insurance, accidents, and driving laws.

Fault State

North Carolina is a fault state, which means that the driver found to be at fault is responsible for the damages. However, there is a strict contributory negligence rule in North Carolina, so if the injured party is found to be 1% or more at fault, they cannot recover compensation in a personal injury claim.

Drivers Without Insurance

Driving without insurance can result in fines and an immediate suspension of your driver’s license.

Uninsured Motorist Coverage

Uninsured motorist (UM) coverage is required in North Carolina. Underinsured motorist (UIM) coverage is optional but recommended.

North Carolina DUI/DWI Laws

North Carolina law sets a blood alcohol concentration (BAC) of 0.08% or higher (stricter limits apply to commercial and underage drivers), and a conviction of driving while impaired results in a minimum one-year license suspension. If you are pulled over and you refuse to take a chemical test, it will initiate an immediate license and registration revocation.

Seat Belt Laws

Drivers and front seat passengers over the age of 16 must wear seat belts. All passengers under the age of 18 must be properly restrained by either seat belts or child restraint devices. This is a primary enforcement law, which means you can be pulled over just because you weren’t wearing a seatbelt.

Distracted Driving Laws

It is illegal for all drivers in North Carolina to text or email. This is considered a primary offense, so you can be pulled over for it. However, adult drivers of the age of 18 are allowed to use a handheld phone for talking, though it is still not recommended.

Teen Driving Laws

North Carolina uses a three-level Graduated Driver Licensing (GDL) system, which provides a learner’s permit with many limitations at age 15, a level to provisional license at age 16, and a full license granted 6 months after the provisional license or age 18, whichever happens first.

Statute of Limitations For Claims

The statute of limitations for property damage or personal injury lawsuits after an accident is 3 years from the date of the accident, but for a wrongful death claim, it’s two years after the death date.

Cancellation/Non-Renewal Notification Laws

Insurance companies must provide written notice of 15 days if your policy is cancelled because of non-payment or 30 days for other reasons.

Self-Insurance

Businesses and individuals can meet with the North Carolina DMV if they own significant vehicles and assets to confirm whether they have the financial responsibility for self-insurance.

DL-123

North Carolina uses a DL-123 form for financial responsibility after serious violations like driving without insurance or a DUI. If you move from another state and you have an SR-22 requirement, you’ll still have to maintain that requirement for the existing term.

Car Inspection Requirements

All registered vehicles must be inspected every year and undergo annual emissions inspections.

Defensive Driving

North Carolina drivers can reduce up to three points from their driving record once every 5 years, get voluntary discounts from their insurance companies, and potentially have a traffic ticket dismissed with court approval if they complete defensive driving courses.

When Is A Car Declared A Total Loss?

If the cost of repairs and salvage is 75% or more than the actual cash value.

When To Report An Accident

If any car accident involves injury, death, or property damage of more than $1,000, it must be immediately reported to the police. Drivers must remain at the scene, exchange information, and contact the respective insurance companies.

Civil Suit Thresholds

North Carolina does not have civil suit thresholds for compensatory damages, but it does have punitive damage thresholds at three times the compensatory damage or $250,000, whichever is higher. That said, there are property damage limits of $10,000 for small claims court cases.

North Carolina Car Insurance Contact Information

If you are looking to handle any disputes, registrations, or other car insurance-related issues, there are two main state agencies in North Carolina you might need to contact.

1. North Carolina Department of Insurance (NCDOI)

If you need to file a complaint about an unresolved dispute regarding your current insurance provider, confirm that a company is legitimately authorized to work in the state of North Carolina, or get help understanding different policies, this is who you can contact.

Contact Information:

• Consumer Helpline: (855) 408-1212 (Toll-free).
• Main Office: (919) 807-6000.
• Agent Services: (919) 807-6800.
• Mailing Address: 1201 Mail Service Center, Raleigh, NC 27699-1201.
• Physical Address: 325 N. Salisbury Street, Raleigh, NC 27603.
• Website: gov.

2. North Carolina Division of Motor Vehicles (NCDMV)

This department enforces liability insurance laws, so if you have a reported lapse in your insurance coverage, you can clear it by contacting this company, providing Form FS-1, and paying your civil penalties. This is also who you reach out to for any Administrative Hearings if you believe that your insurance was revoked without proper cause, or to handle any registration and title issues.

Contact Information:

• Customer Contact Center: (919) 715-7000.
• Liability Insurance Unit: (919) 715-7000 (Same as main).
• Online Portal: MyDMV for secure vehicle and license information.
• Mailing Address: 3101 Mail Service Center, Raleigh, NC 27699-3101.
• Website: ncdot.gov/dmv.

3. North Carolina Reinsurance Facility (NCRF)

This is another organization you might need to contact if you are a high-risk driver. This is a state safety net designed to help high-risk drivers still find insurance if they cannot get one through a private insurance company.

Contact information:

• Website: ncrf.org

Common North Carolina Car-Related Crime And Fatalities

North Carolina drivers need to be aware of the multiple causes of car accidents and car accident fatalities, as well as the risk of vehicle theft in different cities. With so many different causes of car accidents, knowing the data can help you find the right type of insurance coverage for your needs.

Traffic Fatality Data

In 2024, North Carolina recorded over 1,700 traffic fatalities and a 28% increase in pedestrian deaths. Roughly 100 teens die every year in car accidents in North Carolina.

Vehicle Theft Trends

North Carolina ranks 7th across the U.S. for car thefts, with well over 10,000 per year. This means residents, especially in major cities or those who drive electric vehicles, who are commonly still living, including those from Hyundai and Kia, should strongly consider adding extra protection to their insurance.

Common Accident Causes

Across North Carolina, speeding and distracted driving represent the highest causes of accidents, involved in nearly 1/4 of all car accident fatalities. This risk factor changes based on the city, with places like Charlotte experiencing an average of 82 car accidents every day, the majority of which involve speeding or a lack of seatbelt use.

Wildlife is also a risk factor, with 90% of all wildlife accidents in North Carolina involving deer. During similar times of year, there are equal risks of inclement weather; North Carolina ranks 5th in the U.S. for the biggest increase in car accidents during fall and winter. As the weather turns, North Carolina drivers will typically experience an average of 41% more accidents.