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North Carolina Car Insurance Laws: Minimum Coverage, Penalties and SR-22

North Carolina car insurance law: minimum liability limits, fault or no-fault, uninsured motorist coverage, proof of insurance, penalties for driving uninsured, SR-22, title and registration.

Quick answers for North Carolina

Minimum coverage required
For policies issued or renewed after July 1, 2025, North Carolina requires minimum liability coverage of $50,000 for bodily injury to one person, $100,000 for bodily injury to two or more people, and $50,000 for property damage (50/100/50). NCDMV, Vehicle Insurance Requirements (G.S. 20-279.21, 20-309); NC Department of Insurance, Automobile insurance: What's covered and what isn't
At-fault or no-fault
North Carolina is an at-fault (tort) state: liability coverage pays, up to the policy limits, when you cause a crash that injures someone or damages their vehicle or property. NC Department of Insurance, Automobile insurance: What's covered and what isn't; Alabama Department of Insurance, State Auto Insurance Laws
Driving without insurance
When coverage lapses, NCDMV sends a liability insurance termination notice to the registered owner, who must respond by the deadline (10 days from the notice date, increased to 30 days starting October 1, 2026). NCDMV, Vehicle Insurance Requirements
SR-22 filing
North Carolina's certificate of insurance is Form FS-1, which the insurance company submits electronically to NCDMV to show liability coverage; an FS-1 showing continuous coverage clears a recorded lapse. NCDMV, Vehicle Insurance Requirements

Last verified: 2026-10-27

Required coverage

Minimum coverage requiredFor policies issued or renewed after July 1, 2025, North Carolina requires minimum liability coverage of $50,000 for bodily injury to one person, $100,000 for bodily injury to two or more people, and $50,000 for property damage (50/100/50). Policies issued or renewed before July 1, 2025 had minimums of $30,000/$60,000/$25,000. Uninsured and underinsured motorist coverage is also required on all policies. Every vehicle with a valid North Carolina registration must have continuous liability insurance from a company licensed in North Carolina; out-of-state policies are not accepted.
NCDOI (July 2026): https://www.ncdoi.gov/blog/2026/07/22/automobile-insurance-whats-covered-and-what-isnt
Source: NCDMV, Vehicle Insurance Requirements (G.S. 20-279.21, 20-309); NC Department of Insurance, Automobile insurance: What's covered and what isn't
At-fault or no-faultNorth Carolina is an at-fault (tort) state: liability coverage pays, up to the policy limits, when you cause a crash that injures someone or damages their vehicle or property. The Alabama Department of Insurance's national list places North Carolina among the "Tort States."
National list: https://aldoi.gov/consumers/StateAutoLaws.aspx
Source: NC Department of Insurance, Automobile insurance: What's covered and what isn't; Alabama Department of Insurance, State Auto Insurance Laws
Uninsured motorist coverageUninsured and underinsured motorist coverage is required on all North Carolina auto policies, including policies with limits above the state minimums. Uninsured motorist coverage pays for injuries to you and your passengers, and damage to your car, when an uninsured at-fault driver hits you; underinsured motorist coverage pays the difference between the at-fault driver's liability limits and your UIM limits for injuries (it does not cover property damage). Coverage can be lost if you settle a bodily injury claim without the insurer's written consent.
Coverage descriptions: https://www.ncdoi.gov/consumers/auto-and-vehicle-insurance/basic-and-miscellaneous-auto-coverages and https://www.ncdoi.gov/blog/2026/07/22/automobile-insurance-whats-covered-and-what-isnt
Source: NCDMV, Vehicle Insurance Requirements; NC Department of Insurance, Basic and Miscellaneous Auto Coverages; Automobile insurance: What's covered and what isn't
Proof of insuranceNorth Carolina verifies insurance electronically: the insurer submits a Certificate of Insurance (Form FS-1) to NCDMV, and insurers must notify NCDMV whenever liability coverage on a vehicle is canceled or lapses. Registering a vehicle requires North Carolina insurance information, and applying for a driver's license requires proof of liability coverage, which may be printed or a digital copy uploaded during the DMV visit.
License proof: https://www.ncdot.gov/dmv/help/moving/Pages/new-residents.aspx
Source: NCDMV, Vehicle Insurance Requirements; Moving to North Carolina

Driving without insurance and SR-22

Driving without insuranceWhen coverage lapses, NCDMV sends a liability insurance termination notice to the registered owner, who must respond by the deadline (10 days from the notice date, increased to 30 days starting October 1, 2026). Failing to respond or pay can lead to revocation of the license plate (which law enforcement may seize), civil penalties, late fees, interest and collections. To relicense after a revocation, the owner pays a civil penalty of $50, $100 or $150 depending on the number of prior paid lapses on the vehicle within three years, plus a $50 restoration fee at registration renewal. If the insurer submits an FS-1 showing coverage was continuous, the lapse is cleared. Penalties may be waived if the vehicle was registered in another state within 30 days of the NC policy ending. Owners should surrender the plate to NCDMV before canceling insurance to avoid lapse fines.
Source: NCDMV, Vehicle Insurance Requirements
SR-22 filingNorth Carolina's certificate of insurance is Form FS-1, which the insurance company submits electronically to NCDMV to show liability coverage; an FS-1 showing continuous coverage clears a recorded lapse.
Source: NCDMV, Vehicle Insurance Requirements

Your rights with insurers

Cancellation and nonrenewalAn insurer that cancels a North Carolina auto policy must mail notice to your last known address at least 15 days in advance for nonpayment of premium, or at least 60 days in advance for any other reason, for liability, medical payments and uninsured/underinsured motorist coverages; other coverages require at least 10 days' notice. Nonrenewal of liability, medical payments and UM/UIM coverages requires at least 60 days' notice before the end of the policy period (10 days for other coverages). The notice must give the reason(s) and the termination date, and the insurer must be able to prove it was mailed. Insurers must also notify NCDMV when liability coverage is canceled or not renewed.
FAQ: https://www.ncdoi.gov/consumers/auto-and-vehicle-insurance/faqs-about-auto-insurance
Source: NC Department of Insurance, Losing Your Insurance; FAQs About Auto Insurance
Total loss rulesIn North Carolina a "salvage motor vehicle" includes one damaged by collision or other occurrence so that the cost of repairs to make it roadworthy would exceed 75% of its fair retail market value (parts and labor, using the NADA Pricing Guide or another approved publication), whether or not an insurer has declared it a total loss. A salvage vehicle that is rebuilt for title and registration is a "salvage rebuilt vehicle"; flood and reconstructed vehicles are separately defined. If an insurer totals your car, you can keep the salvage; the insurer then subtracts the salvage value from the actual cash value and, on request, must give you the name and address of a salvage dealer who will buy it for that amount. Salvage titles are blue and are not issued as instant titles.
Insurer settlement: https://www.ncdoi.gov/consumers/auto-and-vehicle-insurance/faqs-about-auto-insurance ; blue title: https://www.ncdot.gov/dmv/title-registration/vehicle/Pages/default.aspx
Source: G.S. 20-4.01(33); NC Department of Insurance, FAQs About Auto Insurance; NCDMV, Vehicle Titles
Complaints about an insurerFile a complaint with the North Carolina Department of Insurance online through its "Assistance or File a Complaint" page, by calling the toll-free consumer line at 855-408-1212 (consumer specialists are available weekdays 8 a.m. to 5 p.m.), or by mail to NC Department of Insurance, 1201 Mail Service Center, Raleigh, NC 27699-1201.
Source: NC Department of Insurance, How Can We Help You

Title and registration

Transferring a car titleAnyone buying, selling, gifting or donating a vehicle must transfer ownership by a title transfer at a license plate agency or by mail. The seller and buyer both complete the back of the original title, including the buyer's name and address, sale date, seller's signature and printed name, odometer reading if required, and a damage disclosure statement; a North Carolina title must be notarized. The buyer pays highway-use tax (transfers between spouses, parent and child, or stepparent and stepchild are exempt with Form MVR-613) and either pays property tax at registration or defers it for 60 days. Proof of liability insurance is needed only if the vehicle is also being registered. A seller whose sold vehicle still appears on their registration file can request cancellation with a notarized Form MVR-46F. Title applications normally take 10 to 15 business days.
Source: NCDMV, Vehicle Titles
Registering after you moveNew residents who plan to drive must get a North Carolina driver's license within 60 days of establishing a permanent residence, and must also title and register their vehicles; the license or ID must be obtained before titling and registering. NCDMV also says to register the vehicle when you start gainful employment or when the reciprocity period from your prior state ends (usually 30 days), whichever comes first. Written and road tests may be waived with a valid out-of-state license. Registration requires the title (or registration card if a lender holds it), Form MVR-1, Form MVR-180 odometer disclosure for vehicles under 10 years old, and North Carolina insurance (out-of-state policies are not accepted). No inspection is required for the initial registration, but one is required before renewal.
Source: NCDMV, Moving to North Carolina

Car Insurance & Vehicle Laws FAQ

What is the minimum car insurance required in North Carolina?
For policies issued or renewed after July 1, 2025, North Carolina requires minimum liability coverage of $50,000 for bodily injury to one person, $100,000 for bodily injury to two or more people, and $50,000 for property damage (50/100/50). Policies issued or renewed before July 1, 2025 had minimums of $30,000/$60,000/$25,000. Uninsured and underinsured motorist coverage is also required on all policies. Every vehicle with a valid North Carolina registration must have continuous liability insurance from a company licensed in North Carolina; out-of-state policies are not accepted.
Is North Carolina a no-fault car insurance state?
North Carolina is an at-fault (tort) state: liability coverage pays, up to the policy limits, when you cause a crash that injures someone or damages their vehicle or property. The Alabama Department of Insurance's national list places North Carolina among the "Tort States."
Is uninsured motorist coverage required in North Carolina?
Uninsured and underinsured motorist coverage is required on all North Carolina auto policies, including policies with limits above the state minimums. Uninsured motorist coverage pays for injuries to you and your passengers, and damage to your car, when an uninsured at-fault driver hits you; underinsured motorist coverage pays the difference between the at-fault driver's liability limits and your UIM limits for injuries (it does not cover property damage). Coverage can be lost if you settle a bodily injury claim without the insurer's written consent.
Can you show proof of car insurance on your phone in North Carolina?
North Carolina verifies insurance electronically: the insurer submits a Certificate of Insurance (Form FS-1) to NCDMV, and insurers must notify NCDMV whenever liability coverage on a vehicle is canceled or lapses. Registering a vehicle requires North Carolina insurance information, and applying for a driver's license requires proof of liability coverage, which may be printed or a digital copy uploaded during the DMV visit.
What is the penalty for driving without insurance in North Carolina?
When coverage lapses, NCDMV sends a liability insurance termination notice to the registered owner, who must respond by the deadline (10 days from the notice date, increased to 30 days starting October 1, 2026). Failing to respond or pay can lead to revocation of the license plate (which law enforcement may seize), civil penalties, late fees, interest and collections. To relicense after a revocation, the owner pays a civil penalty of $50, $100 or $150 depending on the number of prior paid lapses on the vehicle within three years, plus a $50 restoration fee at registration renewal. If the insurer submits an FS-1 showing coverage was continuous, the lapse is cleared. Penalties may be waived if the vehicle was registered in another state within 30 days of the NC policy ending. Owners should surrender the plate to NCDMV before canceling insurance to avoid lapse fines.
When do you need an SR-22 in North Carolina, and for how long?
North Carolina's certificate of insurance is Form FS-1, which the insurance company submits electronically to NCDMV to show liability coverage; an FS-1 showing continuous coverage clears a recorded lapse.
How much notice must an insurer give before canceling car insurance in North Carolina?
An insurer that cancels a North Carolina auto policy must mail notice to your last known address at least 15 days in advance for nonpayment of premium, or at least 60 days in advance for any other reason, for liability, medical payments and uninsured/underinsured motorist coverages; other coverages require at least 10 days' notice. Nonrenewal of liability, medical payments and UM/UIM coverages requires at least 60 days' notice before the end of the policy period (10 days for other coverages). The notice must give the reason(s) and the termination date, and the insurer must be able to prove it was mailed. Insurers must also notify NCDMV when liability coverage is canceled or not renewed.
When is a car a total loss in North Carolina?
In North Carolina a "salvage motor vehicle" includes one damaged by collision or other occurrence so that the cost of repairs to make it roadworthy would exceed 75% of its fair retail market value (parts and labor, using the NADA Pricing Guide or another approved publication), whether or not an insurer has declared it a total loss. A salvage vehicle that is rebuilt for title and registration is a "salvage rebuilt vehicle"; flood and reconstructed vehicles are separately defined. If an insurer totals your car, you can keep the salvage; the insurer then subtracts the salvage value from the actual cash value and, on request, must give you the name and address of a salvage dealer who will buy it for that amount. Salvage titles are blue and are not issued as instant titles.
How do you transfer a car title in North Carolina?
Anyone buying, selling, gifting or donating a vehicle must transfer ownership by a title transfer at a license plate agency or by mail. The seller and buyer both complete the back of the original title, including the buyer's name and address, sale date, seller's signature and printed name, odometer reading if required, and a damage disclosure statement; a North Carolina title must be notarized. The buyer pays highway-use tax (transfers between spouses, parent and child, or stepparent and stepchild are exempt with Form MVR-613) and either pays property tax at registration or defers it for 60 days. Proof of liability insurance is needed only if the vehicle is also being registered. A seller whose sold vehicle still appears on their registration file can request cancellation with a notarized Form MVR-46F. Title applications normally take 10 to 15 business days.
How long do you have to register your car after moving to North Carolina?
New residents who plan to drive must get a North Carolina driver's license within 60 days of establishing a permanent residence, and must also title and register their vehicles; the license or ID must be obtained before titling and registering. NCDMV also says to register the vehicle when you start gainful employment or when the reciprocity period from your prior state ends (usually 30 days), whichever comes first. Written and road tests may be waived with a valid out-of-state license. Registration requires the title (or registration card if a lender holds it), Form MVR-1, Form MVR-180 odometer disclosure for vehicles under 10 years old, and North Carolina insurance (out-of-state policies are not accepted). No inspection is required for the initial registration, but one is required before renewal.
How do you file a complaint against a car insurance company in North Carolina?
File a complaint with the North Carolina Department of Insurance online through its "Assistance or File a Complaint" page, by calling the toll-free consumer line at 855-408-1212 (consumer specialists are available weekdays 8 a.m. to 5 p.m.), or by mail to NC Department of Insurance, 1201 Mail Service Center, Raleigh, NC 27699-1201.

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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.