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Updated
Driving without insurance in North Carolina is illegal.
North Carolina requires a minimum amount of liability coverage, as well as uninsured/underinsured motorist (UM/UIM) coverage.
Driving without insurance in North Carolina can lead to higher insurance premiums when you purchase a policy.
Driving without insurance in North Carolina is a Class 3 misdemeanor, with a fine of up to $200.[1] [2] The North Carolina Department of Motor Vehicles (DMV) will revoke your plates, which results in a civil penalty and a restoration fee. You’ll also incur three points on your license.[3]
Several scenarios might leave you uninsured, including:
You intentionally don’t purchase or renew your policy, or cancel mid-policy.
Your insurer issues a non-renewal, and you don’t find a new insurer to take over when the policy ends.
Your current insurer cancels your policy, often for non-payment.
You don’t have proof of insurance with you following an accident or traffic stop.
If you’re pulled over and don’t have your proof of insurance with you, you can obtain a DL-123 or FS-1 form from your insurer. Upload the form to the North Carolina Judicial Branch website to request a charge dismissal.
The following qualify as acceptable proof of insurance in North Carolina:[4]
Your insurance policy
Your insurance card
A DL-123 insurance form
An insurance binder
A form letter from the insurance company
Digital proof of insurance on a mobile device
Driving without insurance is illegal in North Carolina. At a minimum, North Carolina residents who own or drive a vehicle must carry liability insurance, including bodily injury liability and property damage liability, and UM/UIM coverage.[5]
Driving without the required coverage is a Class 3 misdemeanor in North Carolina.
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Driving without insurance in North Carolina is a Class 3 misdemeanor. This includes a maximum fine of $200 and potential jail time if you have enough prior convictions.
You’ll also pay a civil penalty of $50–$150 to the North Carolina DMV, potential court and impound fees, and a plate restoration fee of $50. Future car insurance costs will likely increase.
Situation | Penalty | Civil Penalty | Other Potential Consequences |
|---|---|---|---|
| First insurance lapse | Class 3 misdemeanor | $50 | Fees, license plate revocation, court appearance, vehicle impoundment, higher insurance premiums |
| Second insurance lapse | Class 3 misdemeanor | $100 | |
| Additional insurance lapses | Class 3 misdemeanor | $150 | All of the above, plus potential jail time |
Your first insurance lapse in North Carolina is a Class 3 misdemeanor, which carries a fine of up to $200. You’ll also pay a $50 civil penalty to the DMV.
The DMV will revoke your license plates. Once you can prove you have coverage, it costs $50 to restore your plates.
A second insurance lapse is still a Class 3 misdemeanor, with the same max fine and restoration fee. The civil fee increases to $100.
Any additional lapses incur a civil penalty of $150. North Carolina judges may consider jail time if you have three or more prior convictions.
The cost of driving without insurance in North Carolina could be as small as $100–$300 for the civil penalty, restoration fee, and small misdemeanor fine. But it could cost $1,500 or more if you leave your car impounded for too long or if you hire an attorney.
Here’s a closer look at the fees:
Civil penalty: If you don’t willingly surrender your plate before your coverage lapses, the DMV will charge you between $50 and $150. You may also owe late fees, interest, and collections. Paying North Carolina DMV fees online includes a $3 transaction fee and a 1.85% card processing fee.
Class 3 misdemeanor: While jail time is unlikely, you may be charged up to $200.
Legal fees: Because driving without insurance is a Class 3 misdemeanor in North Carolina, you may need to hire an attorney to represent you.
License plate restoration fee: You’ll pay $50 to restore your plates.
Vehicle impoundment: North Carolina permits a fee of up to $10 per day for vehicle impoundment. The longer it takes to get coverage and reinstate your plates, the more you’ll pay.
Increased insurance premiums: Insurers generally raise their rates if they discover you previously had a lapse in coverage.
Cost Factor | Typical Cost in North Carolina |
|---|---|
| Civil penalty | $50–$150 |
| Max misdemeanor penalty | $200 |
| Legal fees | Vary |
| License plate restoration fee | $50 |
| Vehicle impound/towing | Up to $10/day |
| Increased insurance premiums | Up to 25% |
Here’s what to do before getting behind the wheel after a lapse in coverage in North Carolina:
Buy a new policy immediately. Don’t drive until your coverage is active.
Provide proof of insurance. Ask your insurer to submit a Certificate of Insurance form (Form FS-1) electronically to the NCDMV. You can call the DMV to ensure they’ve received it.
Pay the restoration fee. You must pay $50 to the DMV to restore your license plate. You’ll also need to pay the civil penalty before you can start driving.
In North Carolina, high-risk drivers with coverage lapses can still typically get coverage via the North Carolina Reinsurance Facility (NCRF). The program allows insurers to share the risk of covering drivers who may not qualify for standard policies.
Liability policies in the Tar Heel State average $69/mo.
North Carolina won’t suspend your license for driving without insurance — at least, not directly.
Driving without the required minimum liability insurance in North Carolina results in three points on your license. Under current North Carolina legislation, getting 12 or more points within a three-year period results in a license suspension. This is reduced to eight points if you’ve had your license suspended in the previous three years.
If you have nine or more points when you get caught without insurance in North Carolina, you risk losing your license.
No matter how many points you have, the North Carolina DMV can revoke your license plate if you allow your insurance coverage to lapse.
If you’re at fault in a crash in North Carolina and don’t have insurance, you’re still legally responsible for the other driver’s injuries and property damage.
If the other driver has UM or collision coverage, their insurer may pay their claim first, but North Carolina law allows insurers to seek reimbursement from the uninsured at-fault driver (you) in many cases.
You’ll also need to pay your own medical and car repair costs out of pocket. And because police will likely be involved, you’ll likely receive a Class 3 misdemeanor and will owe fees, including civil penalties and plate-restoration fees.
Finally, when you’re in a reportable accident in North Carolina and don’t have insurance, a commissioner will determine whether you must post security. This is a sum of money to cover potential liability. If you don’t post security, your license will be suspended, in addition to the plate suspension.
Here’s what to do following a crash in North Carolina:
Stay at the scene. Leaving is a crime if anyone is hurt or property is damaged.[6]
Call the police. North Carolina law requires this for any crash with injuries or damage.
Exchange info. Get the other driver’s name, contact info, and insurance details.
Document. Take photos and videos of any damage. Get the responding officer’s name and the report number.
Notify your insurer. Even if you weren’t at fault, tell your insurer what happened and provide all documentation.[7]
Above all else, if anyone is severely injured, prioritize their safety by calling authorities and administering care per the 911 dispatcher’s guidance, if possible.
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North Carolina car insurance requirements include bodily injury liability coverage, personal property liability coverage, and UM/UIM coverage.
The table below breaks down the liability coverage requirements, commonly expressed as 50/100/50.
Coverage Type | North Carolina Minimum Requirement |
|---|---|
| Bodily injury per person | $50,000 |
| Bodily injury for two or more people | $100,000 |
| Property damage | $50,000 |
Find answers to your questions about driving without insurance in North Carolina.
Your insurance company will notify the North Carolina DMV if your liability coverage is canceled or lapses. If you don’t obtain new coverage, you must surrender your plate to the DMV until you restore coverage. Failing to do so can result in a Class 3 misdemeanor and fine, civil penalties, and more expensive insurance coverage going forward.
If a cop pulls you over for a traffic offense or responds to a car accident you’re involved in, they will request your insurance. At that point, if you’re unable to provide proof of insurance, you’ll be charged with a Class 3 misdemeanor.
To reinstate your car registration after a lapse in insurance in North Carolina, your insurer can submit proof of insurance to the DMV electronically. Once the DMV has received it and you’ve paid all required penalties, you can pay $50 to restore your license plates and registration.
Yes, a conviction for driving without insurance will typically raise your rates in North Carolina. A coverage gap makes you a higher-risk driver.
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Certified financial education instructor
Published in USA Today, TIME, Forbes, and Business Insider
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
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