North Carolina motor vehicle law requires that motor liability coverage be maintained on an ongoing basis. Liability insurance protects drivers and their families against injuries and property damage caused by the negligence of other drivers who might have limited, minimal, or no liability insurance. To avoid penalties and fees, a person should not cancel their insurance until they have handed in their license plate to the N, C. A person who has established permanent residence outside North Carolina should not rescind their North Carolina insurance policy until they have handed over their North Carolina license plate to the NCDMV.
Failure to do so could result in a civil penalty. If the license plate is lost or stolen, you must complete an MVR-18A form. NCDMV Customer Service (91) 715-7000 Send messages Postal Addresses Find contact information for NCDOT employees, local offices and more. Car insurance is used to protect you against expenses that you might not otherwise be able to afford if you are involved in a car accident.
Liability insurance is the least expensive car insurance because it provides minimal coverage. Liability insurance is car insurance that covers damage or injury to a third party's property in the event of an accident. However, driving alone with liability insurance can result in costly bills for your own property or injuries, which are not covered by exclusive liability insurance. Liability limits in auto insurance are the maximum amount your insurance company will pay for injuries and property damage in accidents you cause.
Drivers should also consider taking out other types of auto insurance to better protect themselves, since liability insurance does not cover the injuries or property of the policyholder. And if your car is leased or financed, your lender will likely require you to take out collision and comprehensive insurance. For tips on whether liability insurance alone is sufficient for your situation, check out WalletHub's guide to how much car insurance you can take out. Instead of PIP insurance, North Carolina insurance companies offer medical payments insurance (sometimes called MedPay), which helps with hospital bills stemming from a car accident.
North Carolina's liability insurance law is strictly enforced and insurance companies must notify N. The term “liability only auto insurance” is used to distinguish policies with basic coverage from those that have collision insurance and comprehensive coverage. Personal injury protection is a type of car insurance that is used in no-fault states because it covers medical payments regardless of who caused the accident. For example, both collision insurance and comprehensive insurance cover damage to the policyholder's car.
For more information, see WalletHub's guides on how much car insurance you need and affordable car insurance in North Carolina. If North Carolina drivers don't purchase at least the minimum amounts of auto insurance coverage required by North Carolina law, they may face penalties for driving without insurance. Drivers who do not meet North Carolina's minimum auto insurance requirements will face penalties, fines, suspensions, or jail terms. MedPay is similar to PIP insurance in that they both manage your medical bills even if you cause a car accident.
