North Carolina Auto Coverage Requirements
This chapter covers the coverage rules a North Carolina producer must know to place personal auto correctly: the compulsory liability limits and North Carolina's tort (at-fault) system.
Compulsory Liability Limits
North Carolina's Motor Vehicle Safety and Financial Responsibility Act requires every registered vehicle to carry liability insurance at the state minimum limits. Under General Statute 20-279.21, the minimum limits are $50,000 per person and $100,000 per accident for bodily injury and $50,000 per accident for property damage (50/100/50), reflecting an increase to these higher figures. North Carolina also requires uninsured motorist coverage. Because these figures can change, verify the current minimums with the North Carolina Department of Insurance.
Tort System and the Right to Sue
North Carolina is a tort, or at-fault, state: because it does not require no-fault PIP, an injured person keeps the right to sue the at-fault driver for economic and noneconomic damages. North Carolina also follows a strict contributory-negligence rule, under which a claimant who is even slightly at fault may be barred from recovery, an important difference from comparative-fault states. Confirm the current framework with the North Carolina Department of Insurance.