Is non-owner insurance required in NC?

Asked by: Anderson Ratke  |  Last update: July 21, 2023
Score: 4.1/5 (75 votes)

NC law states that anyone wishing to get a drivers license must first have proof of liability insurance. This makes it impossible for anyone without a vehicle or living in a household without a vehicle to get insurance unless they purchase a non owners insurance policy.

Do you need insurance to drive someone else's car in NC?

This question often arises when the at-fault driver is driving someone else's car. The short answer is that under North Carolina law, insurance follows the car not the driver.

How does non owners insurance work in NC?

Non-owner car insurance is a form of liability coverage that protects you if you get into an accident while driving someone else's car. In North Carolina, non-owner insurance can pay for injuries and property damage that you cause others, but it won't pay for damage to the borrowed car or your medical expenses.

What insurance is required by law in NC?

North Carolina Motor Vehicle Law requires that Automobile Liability coverage be continuously maintained. The 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.

Can I put insurance on a car that is not in my name in NC?

This means that you must have a financial stake in the vehicle you insure. If the vehicle is not registered to you, you have no insurable interest in it. Therefore, you cannot insure it.

Non-Owner Car Insurance

15 related questions found

Can you insure a car that is not yours?

In some instances, yes, you can insure a car that is not yours. If you borrow someone's car, rent a car or use a work vehicle, you may be able to get insurance coverage through non-owner insurance — however, keep in mind that this is liability-only coverage that won't cover the damages to the car you're driving.

Do I have to insure my car if I am not driving it?

Get cheap insurance quotes, today! You are legally required to have auto insurance if you own a car, even if you don't drive it. You also need to have coverage if your car is parked on a street, driveway or in your garage. If it is not covered, it can potentially be seized by the police in your state.

Is insurance mandatory in NC?

​​​​​All vehicles with a valid North Carolina registration are required by state law (G.S. 20-309) to have continuous liability insurance provided by a company licensed to do business in North Carolina. Out-of-state policies are not accepted.

Do you need liability insurance NC?

Liability coverage is legally required in North Carolina and pays for injury, pain and suffering, lost wages, and property damage that you cause to another driver in an at-fault accident. Keep in mind that your liability coverage only pays those whom you harm. It never pays for your own injuries or property damage.

Does car insurance follow the car or the driver in NC?

In North Carolina, insurance policies "follow the car." So, if someone borrowing a friend's car causes an accident and hurts another, you would first pursue the policy of the car's owner.

Can I be a named driver without my own insurance?

Does a named driver need their own insurance? No, you do not need your own insurance policy as a named driver. The entire point is that named drivers can be added to an existing policy.

Can someone drive my car if they are not on my insurance progressive?

As long as you gave them permission to drive your car, then they should be covered. Their policy extends to your car and covers them the same way as if they were driving their own car. Damages they cause to others' cars, property, or even injuries are covered.

What happens if someone else is driving my car and gets in an accident in NC?

If you let someone borrow your car and they cause an accident in North Carolina, bodily injury liability insurance pays for injuries to the other driver and their passengers. Property damage liability insurance will pay for damage to the other driver's car.

What happens if someone else crashes your car?

Is my car still covered if someone else has an accident in it? Is my car still covered if someone else has an accident in it? Yes,as long as the other person has your permission to use the vehicle, their liability isn't covered by any other insurance policy, and they meet the same terms of the policy that you do.

Can I remove my son from my car insurance when he goes to college?

Many auto insurance companies will allow you to remove a child who has left for college — as long as the school they're attending is over 100 miles away. When the school is less than 100 miles, auto insurers think there is a good possibility that your child may return home on a fairly frequent basis and use your car.

Does my car insurance cover other drivers?

The car you want to drive must be covered by an existing insurance policy and you must have permission to drive it. Driving other cars cover is usually only available on a comprehensive car insurance policy, so if you have third party (or third party, fire & theft) cover, you won't be covered to drive any other cars.

Does your car insurance and registration have to be under the same name NC?

Your car insurance and registration have to be under the same name in most cases. New York, North Carolina, and New Jersey are a few of the states with laws requiring that the name on a car's insurance policy and registration match.

Is NC a no-fault state?

North Carolina is a “fault” or tort-based state, meaning that if you were hurt in a car accident you can recover from the driver who caused the accident, or was “at fault.” (“Fault” states are discussed in comparison to “no-fault” states in which an injured party recovers from their insurance company, regardless of who ...

Can I insure my girlfriend's car?

Can I add my girlfriend or boyfriend to my car insurance? Most insurers allow you to add a significant other, such as a boyfriend, girlfriend, fiancé, or domestic partner, to your car insurance policy if you live together.

What happens if the person at fault in an accident has no insurance in NC?

If you find yourself in an accident as you drive through North Carolina without car insurance, don't make the situation worse by lying, leaving, or hiding at the scene of the crash. You may face fines and potentially jail time because driving without insurance coverage is a misdemeanor crime. According to N.C. Gen.

What should you not say to your insurance company after an accident?

Even if you know the accident was your fault, don't say sorry or admit guilt at the scene as your insurer might have a clause about it. Exchange details with the other's involved and get in touch with your insurer to report the incident.

What does adding a driver to your insurance do?

Adding a driver to your policy means they're an insured driver under your policy when they drive your car. So, if they get into an accident, your insurer is more likely to cover the damage than for an unlisted driver. Sharing a policy with someone typically means both of your vehicles are covered under one policy.

Can someone else insure my car if the title is under my name?

While the person who owns the car is usually the one who insures it, most states will allow someone other than the owner to pay for a car policy. However, many driver's insurance providers will only insure a car if the policyholder and car owner are the same.

Can I be the main driver on someone else's car?

To get someone else insured on that car, you have to add them as a "named driver". The main driver has to drive the car more often than the named driver. If they don't, it counts as a type of fraud called "fronting". But the main driver doesn't necessarily have to be the owner or the registered keeper.