If you are driving without insurance, know that you are making a huge mistake. Sure, you could probably skate by without facing any charges, but be wary. If law enforcement catches you driving uninsured, you could face serious consequences.
Do you know someone driving without insurance, or are you out on the road taking that risk? Are you curious about the possible fees and penalties you could face if you are caught without insurance? You are going to want to take a good look at this article.
We will go over the consequences of driving without insurance in North Carolina and who you can contact to get a quote for an affordable auto insurance policy.
Proof of Insurance
In the state of North Carolina, you must have an active auto insurance policy on your vehicle. If law enforcement catches you without insurance, you could face penalties.
For example, your first penalty for driving without insurance can cost you $50, and your second penalty will cost you about $100. If you are caught without insurance multiple times, you can expect to pay $150 after your second offense.
What Coverages Do I Need?
In North Carolina, it is mandatory to carry the state minimum for property damage and bodily injury liability insurance amounts. The state minimum for property damage liability is $25,000. The bodily injury state minimum is $30,000 per person and $60,000 per occurrence.
If you are caught driving a car without insurance, you face the possibility of having your license suspended. If you have an active policy but do not have proof of insurance, you could still receive a citation.
In these instances, you will have to show proof of insurance within a specific time frame. The time frame can range from twenty-four hours to a few days.
Other penalties you can face if you are caught without insurance are:
- Jail time
- Reinstatement fees
- Tickets and fees
- Vehicle impoundment
These listed penalties can vary based on the number of infractions you have on your record. You also will have to pay processing fees or any penalty assessment fees.
Alternative Proof of Financial Responsibility
Purchasing an insurance policy is the easiest way to satisfy, showing that you have proof of financial responsibility.
There are alternative ways to show proof of financial responsibility, but they are more expensive than purchasing an auto insurance policy. You have the option to have a surety bond, a real estate bond, or to put down a security deposit.
To receive a certificate of compliance from your state insurance commissioner, you will have to buy a surety bond.
This surety bond must be worth at least $85,000 to guarantee that you will have enough to cover you in the event of an accident. If you cannot fulfill your end of the bargain, the surety company will pay on your behalf and collect from you later to repay themselves.
Real Estate Bond
A real estate bond uses real property, such as a house, as collateral. Your local county superior court clerk must prove the real estate bond before it is active.
Two other people who own real estate with at least $170,000 in equity must also sign the bond. If you fail to make your payments on time, the commissioner will take your property.
If you can, you can put down an $85,000 cash deposit to your county superior court. The insurance commissioner will take your deposit if you get into any car accidents. This deposit will satisfy any bodily injury or property damage.
Uninsured Car Accident
In the state of North Carolina, all drivers must carry uninsured motorist coverage on their insurance policy. Uninsured motorist coverage helps take care of your damages if an uninsured driver hits you. This coverage helps pay for any damages and any injuries that happened due to a car accident.
If you are caught without any insurance and involved in a car accident, you can still be held liable for damages incurred in the loss. Even if the other driver has uninsured motorist coverage, their insurance company will come after you directly to repay themselves.
The insurance company will sue you to get back whatever they paid out to their insured. It is important to know that if the other party retains an attorney, the attorney can also sue you for their client’s fees and any other losses.
What About My Damages?
If you get in a car accident and do not have any active insurance, you may have to pay out of pocket for your damages. If the other driver’s insurance company finds their insured at fault for the accident, you could have your damages repaired.
North Carolina is a “contributory negligence” state. Contributory negligence means that if the insurance company finds you to be any percent at fault for the accident, even 1%, the other driver is not liable for your damages.
Stop Driving Without Insurance Today
Now that you know the severe consequences of driving without insurance, it is time to get an affordable auto insurance policy. Having an active insurance policy will save you the headache and stress of having to pay out of pocket for someone else’s damages if you are in an accident.
Having an active policy also saves you from having to pay fines and penalty fees from the state. If you are looking to purchase affordable auto insurance, contact us now. We are ready to answer your questions twenty-four hours a day, seven days a week!