North Carolina Car & Motorcycle Insurance Requirements

In 1957, North Carolina became one of the first states to adopt a compulsory insurance law. Designed to compensate accident victims for losses and injuries obtained in accidents involving vehicles, the Vehicle Financial Responsibility Act, requires all motor vehicles registered in North Carolina to be covered by an automobile liability insurance policy. This insurance must be provided by a company licensed to do business in North Carolina and must remain in effect, with continuous coverage, until the vehicle registration is terminated.

The compulsory insurance law is designed for your protection and is strictly enforced. So much so that in the state of North Carolina, you must show proof of insurance in order to register your vehicle. Basically, you cannot own or operate a motor vehicle (including motorcycles) in North Carolina if you do not have liability insurance coverage on that vehicle. Liability coverage pays for bodily injury and property damage for which any individual covered by the insurance policy is held legally responsible.

The minimum coverage requirements for Liability Coverage in North Carolina are:

  • $30,000 Bodily Injury for each person
  • $60,000 total Bodily Injury for all persons in an accident
  • $25,000 for Property Damage