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## Insurance and Financial Responsibility 

In addition to proof of ownership, North Carolina law requires that before a motor vehicle can be licensed, the owner must certify that the vehicle is covered by liability insurance. This can be in the form of a liability insurance policy issued from a company licensed to do business in the State of North Carolina, cash or bond deposited with the State Treasurer or a certificate of self-insurance for fleets of 25 or more vehicles. This law is enacted to ensure that the costs of a crash are paid by those who are responsible. 

## The minimum amount of liability insurance required is: 

• $30,000 for injuries to any one person in a crash 

• $60,000 for all personal injuries in a crash 

• $25,000 for all property damage in a crash 

• $750,000 for a commercial motor vehicle 

If the DMV is notified that a vehicle owner is operating a motor vehicle without proper liability insurance, the vehicle’s license plate could be revoked for 30 days unless proof of continuous insurance coverage is provided. If a lapse did occur, the registered owner could be subject to a fine or penalty. 

North Carolina law requires the owner of every registered vehicle to maintain continuous liability insurance as long as the vehicle has a valid license plate. Liability insurance policies are effective at 12:01 a.m. on the date of issuance, remain in effect for a period of six months and expire at 12:01 a.m., six months later. This information is also indicated on the declaration page of the policy issued by the insurance company. North Carolina does not honor a grace period. A grace period is an agreement between the Insured and the insurance company only. 

Additional information regarding liability insurance requirements or options available for registered owners who may have had a lapse, may be found on our website or by calling 919-715-7000. 

## Vehicle Registration Renewal 

Within 90 days prior to the registration expiration, all self-propelled vehicles are required to receive a safety or safety and emission inspection to renew their registration. 

Upon expiration of vehicle registration, the vehicle’s owner must renew the registration by submitting a renewal application and paying the appropriate registration fee. Upon payment of the appropriate fee, DMV will issue license plate stickers to indicate the new period of valid registration and vehicle inspection. DMV uses a staggered vehicle registration system. This method of registration staggers registration renewals over 12 months of the year. 

To avoid a fine or penalty, surrender a vehicle's valid license plate prior to the termination or cancellation of liability insurance. 

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