North Carolina Insurance Laws
If you are shopping for the best auto insurance rates, North Carolina insurance rates are very competitive. You can get auto insurance quotes online, and you can compare the quotes with the quotes from other auto insurance companies. The quotes will provide you information of what you will be paying for.
Basic coverage (liability insurance) is usually written as 30/60/25 with 30/60 UM limits, which covers the injury and property damage and uninsured motorist's coverage. Your liability insurance is designed to cover damage to your vehicle if you are in an accident with an uninsured motorist. If you are switching insurance companies, just remember to follow the procedures necessary to keep the DMV informed of your changes.
North Carolina insurance law requires that every individual who drives a motor vehicle to have automobile insurance. In 1957, the state adopted compulsory North Carolina car insurance requirements; prior to this time too many people were driving without insurance coverage. North Carolina was one of the very first states to require that all drivers insure their vehicles with automobile liability insurance. Liability insurance will take care of the other vehicle when you get into an accident.
North Carolina insurance laws require you to keep full insurance coverage on your vehicle if you have financed the vehicle. If you buy the car through a private sale without a bank or finance company you can forego the full coverage and opt for the liability insurance instead. If your car is new or fairly new, it would behoove you to keep full coverage insurance on it.
If your car is an older vehicle, it might not make good economic sense to keep full coverage on it; because most insurance companies require a $500 deductible before the insurance company will pay. If your car is 15 or 20 years old, it wouldn't make sense to keep anything other than the bare minimum North Carolina auto insurance requirements.
North Carolina insurance laws require that you provide proof of insurance when you register your vehicle each year. It is customary to provide to the clerk your certificate of insurance when you register your vehicle with the Department of Motor Vehicles. The clerk at the Department of Motor Vehicles will enter the information into the system.
The North Carolina car insurance requirements for liability insurance are broken up into parts. $30,000 is allowed for bodily injury for one person involved in the accident. If two or more people are injured in the accident, $60,000 is allowed for that. The minimum North Carolina car insurance requirement for property damages is limited to $25,000.
North Carolina insurance law requires you to notify the Department of Motor Vehicles when your insurance coverage has been cancelled for any reason. For instance, you may change insurance companies; the former insurance company will likely send a cancellation notice to the DMV. You will need to fill out the form the DMV sends you and send it back within 10 days.
North Carolina insurance laws are strict about enforcing penalties for becoming legal to drive again after having lapses of insurance; if you have lost your license plate due to a break in insurance coverage, you will have to submit an FS-1 form to the DMV. You get the FS-1 form from your insurance company. You may have to pay a civil penalty fee as well as a service fee and you will also have to pay the cost of being issued a new license plate.
It's not difficult to change insurance companies; you just need to follow the rules set by North Carolina insurance law. If you aren't sure about what you need to do to stay legal while you are switching insurance companies, just ask your insurance agent. Your agent will be glad to send you the form necessary to make the necessary changes with the DMV. It's so simple to change insurance companies; even if you purchase insurance online, your insurance agent can email you the necessary forms for you to fill out. It is your job to make sure you follow North Carolina car insurance requirements, and your agent is trained to help you do that.