North Carolina Insurance Coverage Explained

It can be dangerous to drive on busy streets, navigate complicated interchanges, or contend with unpredictable weather. It’s not possible to avoid every hazard, and other drivers can pose a serious threat to your safety and the integrity of your vehicle. One way you can protect yourself is by having appropriate North Carolina insurance coverage.

Hire a Car Accident Lawyer

When you experience a motor vehicle accident through no fault of your own, it can be overwhelming to handle car repairs, possible medical bills, and insurance negotiations. As your day-to-day life is thrown into chaos, you need a strong advocate to represent your interests. When you hire a car accident lawyer at DAS Law Group, P.A., you get an award-winning team with over 100 years of combined experience.

North Carolina Vehicle Crash Statistics

The North Carolina Division of Motor Vehicles’ Traffic Records Unit and Traffic Safety Unit compiled traffic crash statistics for 2023. There were a total of 284,157 reported crashes. Of those crashes, there were:

• 1,686 total fatalities
• 115,009 total injuries
• 1,117 drivers killed
• 268 passengers killed
• 202 motorcyclists killed
• 40 pedalcyclists killed
• 250 pedestrians killed

The actions most likely to cause a fatality were the misuse of the safety belt, intoxication, speeding, unsafe lane departures, running a stop sign or traffic signal, and distracted driving.

North Carolina Car Accident Laws

Understanding the North Carolina car accident laws and insurance laws is helpful in the event of an accident. Some important laws include:

• Pure Contributory Negligence Law: If you are found to be at fault for a car accident, even just 1%, you lose your right to receive compensation for the accident. This standard increases the rate at which insurance companies deny claims, forcing more cases through litigation.
• The Last Clear Chance Doctrine: Often used as a defense against the pure contributory negligence law, the last clear chance defense claims that the other driver had a clear opportunity to prevent the accident but failed to do so.
• In court, the plaintiff has to show they were in immediate danger and unable to remove themselves from that danger: They also have to show that the defendant knew about the danger, had an opportunity to act, and failed to act. The plaintiff also has to show proof of harm.
• Underinsured and Uninsured Coverage: Drivers are required to have uninsured motorist and underinsured motorist coverage. Coverage limits must be equal to the highest limits of the bodily injury liability coverage for any one insured vehicle, not to exceed $1,000,000.
• Dashcam Usage: If you choose to have a dashcam in your vehicle, it has to be in a position that doesn’t obstruct your view of the road.
• North Carolina is also a one-party consent state when recording audio, so you have to be mindful of when your dashcam is recording: You are also restricted from recording on private property, which includes many shopping areas.
• Statute of Limitations: After a car accident, you have a three-year statute of limitations to file a personal injury claim.
• Texting Laws: It is illegal to use a mobile phone while operating a vehicle.
• Punitive Damages Law: If you are eligible for compensation after an accident, you may qualify for punitive damages if the requirements are met. You must prove that the other driver acted in a fraudulent, malicious, or wanton manner. Punitive damages are capped at $250,000 or three times the amount of compensatory damages, whichever is greater.

FAQs

How Much Is Full Coverage in North Carolina?

There is no average amount for full coverage insurance in North Carolina, but your rate can be influenced by several factors. Full coverage is often used to describe car insurance that includes state minimum liability as well as collision and comprehensive coverage.

Factors that can affect your rate include your driving history, as having an accident can increase your rate, and the coverage levels you choose, where high levels increase your rate. Where you live can also influence your rate.

Why Is the Cost of Car Insurance in North Carolina Rising?

Car insurance rates in North Carolina have been rising for numerous reasons. Vehicle repair costs are increasing as vehicles become more complicated and expensive to repair or replace. Distracted driving has also increased as phone use while driving has increased.

The increase in severe weather in localized areas can also cause rates to increase in that area. Overall, your age, location, vehicle type, and credit score play a role in how your insurance rate is calculated.

What Is the New Insurance Law in North Carolina?

New insurance laws took effect in 2025 that made changes to insurance policies in North Carolina. Minimum liability limits were increased for all new and renewed policies.

The inexperienced operator surcharge has been increased from three to eight years for all newly insured motorists. Policy surcharges for receiving insurance points or for speeding convictions of 10 mph or less have also increased from three to five years.

Do I Have to Have Full Coverage Insurance in North Carolina?

No, you are not required to have full coverage insurance in North Carolina. You are required to have continuous liability insurance from a company licensed in North Carolina. Liability insurance protects you from damage caused by other drivers.

You must also maintain a minimum coverage of $50,000 for bodily injury of one person, $100,000 for bodily injury of two or more people, and $50,000 for property damage.

Are There Penalties for Not Having Minimum Insurance Coverage in North Carolina?

Yes, North Carolina takes insurance laws very seriously, and there are penalties for failing to have minimally required insurance. Insurance companies are required to notify the North Carolina Division of Motor Vehicles whenever insurance is cancelled or lapses.

Over a three-year period, the first time your insurance lapses, there is a $50 fee. If you lapse a second time, the fee is $100. Every subsequent lapse incurs a $150 fee. There is also a $50 fee to restore your privileges.

Contact DAS Law Group, P.A.

Car accidents always have the potential to cause serious injuries. You shouldn’t be left to handle recovery, lost wages, medical bills, and vehicle repair bills on your own. North Carolina’s strict liability standards make it even harder to recover a fair settlement. Our seasoned car accident attorneys are here to help you with a claim after an accident. Contact DAS Law Group, P.A. today to schedule your initial consultation.