What are North Carolina's minimum auto insurance requirements?

Drivers in North Carolina are required to have auto liability coverage ( BI liability and PD liability ), and either uninsured motorist (UM) coverage OR uninsured/underinsured motorist (UM/UIM) coverage.

Is North Carolina a no-fault state?

No, North Carolina is an at-fault state, which means the driver who causes an accident is responsible for the resulting injuries and property damage.

How do I lower my car insurance in North Carolina?

Adjusting your coverages, limits, and deductible makes the biggest impact on your premium. A higher deductible lowers your premium, though you'll pay more on a claim. Bundling your auto and home policies and keeping a clean driving record can lower your cost over time as well.

What is the Safe Driver Incentive Plan (SDIP)?

The Safe Driver Incentive Plan (SDIP) is North Carolina's standardized system for pricing auto insurance based on your driving record. Created by state law and overseen by the North Carolina Department of Insurance, it assigns points for certain traffic convictions and at-fault accidents during a set period of time. More points can mean a higher premium.

What happens if my car insurance lapses in North Carolina?

If your coverage lapses, your insurer notifies the North Carolina DMV, and the DMV sends a notice requiring you to verify coverage or respond. If ignored, you can face civil penalties, and your registration may be revoked.

North Carolina car insurance

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Getting car insurance in North Carolina

Learn which car insurance coverages North Carolina requires, what your coverage options are, and what determines your rate. Then, discover how Progressive helps North Carolina drivers with flexible coverage and transparent pricing. We offer tools to easily compare coverage, price, and more, including the Name Your Price® tool and AutoQuote Explorer®.

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FAQs

What are the minimum auto insurance requirements in North Carolina?

North Carolina requires drivers to carry bodily injury and property damage liability coverages plus uninsured/underinsured motorist coverage. Insurers must also offer medical payments coverage, but you can reject this coverage. Below are the state's minimum insurance limits:

Coverage	What it covers	Minimum amount
Bodily injury liability	Injuries you cause to others in an accident	$50,000 per person $100,000 per accident
Property damage liability	Damage you cause to other people's property in an accident	$50,000 per accident
Uninsured/underinsured motorist bodily injury	Medical costs for you and your passengers if you're hit by a driver with little or no insurance	$50,000 per person $100,000 per accident
Uninsured motorist property damage	Damage to your vehicle if you're hit by a driver with little or no insurance	$50,000 per accident
Medical payments coverage	Your medical costs after an accident, regardless of fault (You may reject this coverage)	$500

Although North Carolina's minimum coverage limits run higher than many states', increasing coverage can better protect your finances after a serious accident. See how much car insurance you may need for your situation.

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Car insurance discounts in North Carolina

Progressive offers several discounts to help drivers save on car insurance. Popular discounts available in North Carolina include:

Paid in full
Save when you pay your premium in full up front. Choosing the full amount instead of monthly installments earns a discount and skips the installment fees.
Automatic Payment
Save when you set up automatic payments. Paying your premium with autopay earns a discount and keeps you from missing a due date.
Paperless
Save when you choose paperless billing and documents. You'll get your statements and policy details by email and earn a discount for skipping the mail.

What is the average cost of car insurance in North Carolina?

For a liability-only policy, car insurance costs an average of $87.56 per month in low-cost states like North Carolina.^† Your rate will depend on many car insurance cost factors such as where you live, your driving history, and the limits and coverages you choose.

Factors that impact your auto insurance rate in North Carolina

Many factors can impact how much you pay for auto insurance in North Carolina. Some reflect your specific situation, and others are in your control:

Driving history: Tickets, accidents, and past claims can raise your rate.
Vehicle type and value: Your car's make, model, age, safety technology, and repair costs are factored into your rate. Higher vehicle values can lead to higher claim costs.
Location: Your ZIP code affects your rate, as traffic density, accident and theft rates, and weather vary across the state.
Coverage choices and deductibles: The coverages, limits, and deductibles you select directly affect your premium. A higher deductible lowers your premium, while more coverage or higher limits raise it.
Payment method: How you pay can lower your cost. Paying in full or setting up automatic payments helps you avoid installment fees and earn a discount.

Recommended additional auto insurance coverages in North Carolina

North Carolina's required liability coverage won't repair or replace your own vehicle. Other than Collision (Comprehensive) and collision close that gap, and many lenders require them if you finance or lease:

Coverage	What it covers
Other than Collision (Comprehensive)	Cost to repair or replace your car if it's damaged by hail, fire, theft, wind, flood, vandalism, and other covered events
Collision	Cost to repair your vehicle if it overturns or collides with another vehicle or object

North Carolina driving resources

Get to know North Carolina's driving laws and insurance resources. Keep in mind that local governments may have additional rules or requirements.

North Carolina Division of Motor Vehicles (NC DMV): Handles driver licensing, vehicle registration, driving records, and more.
North Carolina insurance requirements: The state's rules on required coverage and what happens if your insurance lapses.
North Carolina Department of Insurance (DOI): Regulates the state's insurers and the Safe Driver Incentive Plan, and helps consumers with questions and complaints.

How to get car insurance in North Carolina with Progressive

Progressive makes it easy for North Carolina drivers to compare coverage options and get a competitive auto insurance quote.

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