Can you have vehicle insurance without owning a car? Here’s what NC law says
Some licensed drivers in North Carolina may want to buy a car or currently drive a vehicle without insurance. But is it even possible or legal?
A Reddit user recently asked, “I don’t plan on owning a vehicle or insurance for much longer. Does this mean I will need to surrender my license? I need a license to drive vehicles once at work but don’t plan on having a car or insurance of my own.”
North Carolina Motor Vehicle Law requires that automobile liability be continuously maintained, according to The North Carolina Department of Insurance.
Minimum coverage requirements are “$30,000 Bodily Injury for each person, $60,000 total Bodily Injury for all persons in an accident and $25,000 for Property Damage,” NC Department of Insurance states.
Once a license is obtained, there is no insurance requirement tied to the license. While there is always a requirement tied to vehicles, “You cannot go without insurance on a vehicle at all,” North Carolina Department of Transportation spokesperson, Marty Homan wrote in an email to The Charlotte Observer.
Here’s what you’ll need to get a driver’s license in North Carolina:
Proof of your legal presence in the U.S. (If you weren’t born in the U.S.)
Why do you need insurance if you don’t have a car?
Having auto insurance not only protects you financially but would also pay for injuries and property damage you were to cause to others. Without insurance, you run the risk of being sued directly for damage or injuries.
While having auto insurance is required by North Carolina state law according to NCDMV, Liability insurance protects drivers and their families against injuries and property damage caused by “the negligence of other drivers who might have limited, minimum or no liability insurance.”
North Carolina’s state law requires insurance companies to notify NCDMV if your liability insurance coverage is canceled or lapses.
So if you do end your insurance coverage, NCDMV will send you an insurance termination notification which you will have 10 days from the date printed on the notice to respond. And you must respond, or else NCDMV could cancel your license plate and charge “civil penalties, late fees, interest and collections.”
What are NC insurance penalties?
First insurance lapse: $50
Second insurance lapse: $100
Restoration fee: $50
Subsequent insurance lapses: $150
What are the minimum insurance requirements for NC?
Upon obtaining a license for the first time, Homan says there are three options regarding providing proof of liability insurance coverage:
Provide proof of liability insurance coverage tied to a specific vehicle.
Provide proof of “non-owner’s policy” which covers you on any vehicle, instead of a specific vehicle.
You can obtain a license with a Fleet Restriction by completing a form (DL-123A), which limits a driver to operating a Fleet vehicle. This allows the driver to operate a rental car or a company car (where the company pays for the insurance).
Other types of car insurance
If you drive, but don’t own a car, Progressive, the national insurance company, says, “Non-owner insurance provides liability coverage for bodily injury and property damage.” This will cover you if you are liable for damages or injuries in an accident.
Some insurance companies may also offer medical payments coverage and uninsured or underinsured motorist coverage, according to Direct Auto Insurance.
