One of the first states to require registered motor vehicles to have liability car insurance is North Carolina. This means that all state-registered vehicles must have the required liability car insurance coverage. You must also maintain car insurance until such you terminate the registration of your vehicle. In other words, you should be covered as long as you are using and have the vehicle registered. In fact, before you can actually register your vehicle, you will be required to present your proof of car insurance North Carolina. This is the insurance certificate issued to you by your insurance company. The state also requires you to purchase insurance only from licensed North Carolina car insurance providers so you cannot use out of state insurance as proof of your insurance.

The minimum coverage required is $30,000 for bodily injury per person, $60,000 for bodily injury for two or more people and $25,000 for property damage. Although this is the minimum required coverage, it is advisable to purchase additional coverage, such as the uninsured/underinsured motorist coverage. This is in case the driver responsible for the accident does not have enough coverage or insurance to pay for the accident.

All registered insurance companies in the state are required by the North Carolina Division of Motor Vehicles (DMV) to notify them of cancelled insurance coverages. So, if your car insurance lapses, the DMV will notify you about the lapse. You must then respond within 10 days of the receipt of your notice. If there was simply an error in your form, such as the date, you just have to supply the DMV with the correct information. If your car insurance has lapsed, you have to pay the amount of $50 and get insurance within 10 after receipt of the notice. If you failed to respond accordingly within 10 days after receipt of your notice, you will lose your license plate. You will then have to pay the relicensing fee or penalty fee, the processing fee and license plate fee to get another license plate.

Read more about North Carolina Car Insurance