UPDATED: May 25, 2021

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Written By: Daniel WalkerReviewed By: Chris TepedinoUPDATED: May 25, 2021Fact Checked

North Carolina, like most states in the US, has a required minimum insurance for all licensed drivers. Called the North Carolina Financial Responsibility Law, it sets the legal minimum coverage and provides the penalties for failure to carry continuous auto insurance as long as you live in the state. The law also provides the acceptable terms under which an insurance company can end your insurance coverage. Have a look at some of the minimums you are required to carry:

broad form auto insurance in North Carolina

  • $30,000 – for bodily injury for each person
  • $60,000 – bodily injury for each accident (for more than one person)
  • $25,000 – for each accident/property damage

Remember, these are the minimum amounts required by law and may not be enough in the event of a serious accident.

Is Insurance Coverage More or Less Expensive in North Carolina?

When comparing insurance in your own state, (North Carolina in this case) it is important to consider how it stacks up against the national average. While it won’t change how much you eventually end up paying, it might give you satisfaction in knowing that there are other states that are far more expensive. For minimum insurance:

Yearly coverage for North Carolina was $1,218 in 2011 on average, while the national average was $1,436. It is in the top ten of the least expensive states for insurance rates.

Other Insurance Facts about North Carolina

North Carolina’s insurance coverage is considered to be one of the best in the nation. Consider these facts:

  • North Carolina was one of the first states in the nation to make auto insurance mandatory with new laws in 1957.
  • There are no public options or alternatives to the basic insurance coverage choices in the state.
  • People who do not qualify for the average insurance coverage type must seek insurance through high risk or reinsurance companies, which is typically much more expensive than regular insurance.
  • If you allow your insurance to lapse, there will be a fee of $50 for a first offense. A second offense will cost twice as much. A third offense will cost $150. You may also lose your car’s plates for 30 days or more.

Why You Need Broad Form Insurance in North Carolina

While you need insurance because it is a legal requirement, there are other things that you might consider as a driver in North Carolina. Consider these stats from 2009:

  • There were 209,695 accidents in North Carolina
  • Because of those accidents, there were 69,394 injuries
  • 1,314 people died as a result of accidents on North Carolina’s roads

The number of alcohol related fatalities in the state of North Carolina is below the national average. Nationwide, the rate is 32%, while in North Carolina, the number is 28%.

The Five Counties in North Carolina with the Highest Rate of Fatalities

  • Wake County
  • Mecklenburg County
  • Robeson County
  • Cumberland County
  • Guilford County


Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance-related. We update our site regularly, and all content is reviewed by auto insurance experts.

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Written by Daniel Walker
Licensed Car Insurance Agent for 15 Years Daniel Walker

Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and Cinncinati....

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Reviewed by Chris Tepedino
Feature Writer Chris Tepedino