NC DMV Insurance and Financial Responsibility

Question 1

What is the minimum liability insurance required to drive in North Carolina?

Accepted Answer

Bodily injury and property damage liability coverage meeting state minimum requirements

Answer

Only comprehensive coverage

Answer

No insurance is required to drive

Answer

Only collision coverage

Question 2

What is uninsured motorist coverage?

Accepted Answer

Coverage that pays for your injuries when the at-fault driver has no insurance

Answer

Insurance that covers you when your own policy lapses

Answer

Coverage for vehicles with expired registration

Answer

Insurance for drivers who are not licensed

Question 3

What happens if you are caught driving without valid insurance?

Accepted Answer

Fines, license suspension, vehicle impoundment, and potential jail time for repeat offenses

Answer

A verbal warning for the first offense

Answer

Only a small fine

Answer

No penalty if you have a valid license

Question 4

What is the difference between liability and full coverage insurance?

Accepted Answer

Liability covers only damage to others; full coverage adds collision and comprehensive for your vehicle too

Answer

There is no difference

Answer

Liability is more expensive than full coverage

Answer

Full coverage only applies to new vehicles

Question 5

What is an SR-22 filing?

Accepted Answer

A certificate of financial responsibility required after serious traffic violations like DUI

Answer

A standard insurance policy

Answer

A vehicle registration form

Answer

An emissions test certificate

Question 6

How does an at-fault accident affect your insurance?

Accepted Answer

Your premiums typically increase for 3-5 years

Answer

There is no effect on premiums

Answer

Your insurance is automatically canceled

Answer

Your deductible increases permanently