|Does North Carolina have mandatory insurance
requirements for licensing a vehicle?
Carolina law requires the registered owner of a motor vehicle to
maintain continuous liability insurance coverage as long as there
is a valid license plate for that vehicle.
Are all insurance companies accepted in North Carolina?
Liability coverage must be continuously maintained with a company
licensed and authorized to do business in North Carolina.
What are the minimum liability requirements for licensing?
The minimum requirements for liability for private
passenger vehicles are $30,000 for bodily injury for one person;
$60,000 bodily injury for two or more people and $25,000 property
North Carolina law requires each insurance company to notify DMV
upon the issuance of a new policy and when coverage has been
Is there a penalty for a
lapse of liability insurance coverage?
Should a license plate be surrendered when insurance has
- If you change insurance carriers or you have a lapse of
coverage, your insurance company is required by law to notify the
Division of Motor Vehicles. When the Division receives this
information, it is required to send you Form FS 5-7 Notice and
you are required to respond within 10 days.
- If there has not been a break in coverage, you must enter
your correct insurance information on the Form FS 5-7 and return
it to the Division within 10 days from the date on the FS 5-7
- If there has been a break in coverage, you must
re-certify with the correct insurance information and submit
payment of the assessed civil penalties within 10 days from the
the letter in order to retain your license
- Effective July 1,
2008, civil penalties assessed for a lapse in liability
insurance are based on the number of prior lapses you have had
on your vehicle within three years of the current lapse. If
this is your first lapse, your civil penalty will be $50.00. If
this is your second lapse, your civil penalty will be $100.00.
If you have more than two lapses, your civil penalty will be
- Failure to respond within the required time can result in
the loss of your license plate for 30 days.
- In order to re-license the vehicle after 30 days, you
must provide proof of insurance coverage Form FS-1 (which you can
obtain from your insurance agent), pay a restoration fee for the
assessed civil penalty, pay a $50.00 service fee (if a plate pick
up order is issued), and the appropriate license plate fee.
Yes. License plates should be turned
in to DMV prior to insurance being terminated. Return the plate to
DMV Vehicle Registration Section, Renewal Title and Plate Unit,
3148 Mail Service Center, Raleigh, NC 27699-3148.
If I feel the termination of insurance is unjustified, do I
have any recourse?
An insurance hearing may be
requested when you feel the lapse in coverage is not reasonably
attributed to fault or neglect on your part. To request a hearing,
call (919) 715-7000 or check the box on the FS 5-7 Notice.
Can my license plate be transferred from one vehicle to
The license plate may be transferred to a
different vehicle if the insurance was secured on the new vehicle
at the same time the insurance was deleted on the old vehicle;
there may not be a break between the two