Each state has its own minimum insurance requirements and laws for vehicles that are operated on public roads. Car insurance is required for all vehicles with state registrations in North Carolina. An SR-22 may be required if you have any driving convictions or a less than ideal driving record.
An SR-22 proves that you have maintained the minimum state coverage for a specific time. North Carolina is the only state that doesn’t require you to fill out an SR-22 form if there has been a serious driving offense. Poor driving records are subject to financial responsibility in most states. You might need to obtain an SR-22, SR-21, or FR-44 certificate in order to move from NC. This overview will show you when an SR-22 may be necessary and how bad driving can affect your auto insurance premium.
What is “SR-22 insurance?”
An SR-22 certificate is not insurance but it can be used in conjunction with your auto insurance policy. An SR-22 certificate proves that you have met the minimum insurance requirements for a specific time. This will vary from one state to another. SR-22 certificates are usually required for drivers who have been convicted of a serious driving offense, such as a DUI.
Although SR-22 forms are not required in North Carolina, drivers who are trying to obtain a license after a serious driving violation may be required to provide proof of financial responsibility, or proof of minimum required insurance coverage, to the DMV in order to register their vehicle. Sometimes, a driver’s license may need to be reinstated if they are convicted of a serious driving offense.
To obtain the proper proof of financial responsibility to satisfy the NC DMV’s conditions, you will need to purchase an insurance policy and carry the required minimum limits of liability. North Carolina drivers must carry $30,000 bodily injury liability for each person, up to $60,000 per accident (for 2 or fewer people), and $25,000 property damage coverage.
Alternatives to SR-22 in North Carolina
High-risk drivers need to be aware that each state has its own requirements after a serious driving offense. High-risk drivers who want to return on the roads must have proof of insurance or a financial responsibility certificate. You may be required to get one of these forms from your insurance company, regardless of where you live.
- FR-19: An FR-19 is issued to Maryland’s Motor Vehicle Administration if they request proof of insurance.
- SR-22A. An SR-22A is used in Texas, Georgia, and Missouri. An SR-22A form is similar to an SR-22. It is used by the state’s motor vehicle division to verify financial responsibility for high risk drivers, particularly repeat offenders.
- FR-4: Both Florida and Virginia use FR-4 forms. In that it is required for high risk drivers, an FR-44 form can also be used. It may be necessary to have higher liability limits for serious driving offenses than the minimum state requirement.
- SR-50: Indiana’s SR-22 is titled an SR-50. This document proves financial responsibility for high risk drivers.
SR-22 for non-owners
After a serious move violation, high-risk drivers might decide not to purchase a vehicle. Some states require high-risk drivers to show proof of financial responsibility, even if they don’t own a vehicle. This is because the driver could borrow or drive another person’s car. If a person needs an SR-22 but does not own a vehicle, they will need to buy non-owners insurance that covers the required limits of liability.
DL-123 North Carolina
Although SR-22 forms cannot be used in North Carolina, high risk drivers must still provide proof of insurance to NC DMV. To prove insurance, North Carolina uses the standard form DL123. DL-123 forms can be sent by your insurance company. They may be required to obtain a NC license for the first or reissue a license.
North Carolina SR-22 insurance costs
North Carolina operates under a Safe Driver Incentive Plan (SDIP). After certain moving violations, SDIP points will be added to your driving record. DWI is the most serious offense that could result in 12 SDIP points being added to your driving record. Your driving record will be permanently marked with SDIP points for three years.
In North Carolina, most high-risk drivers, like those who have received a DWI, are assigned to the NC reinsurance facility which is essentially a high-risk insurance pool. While some companies will still offer standard coverage for high-risk drivers, many companies will place you into this facility rating. High-risk drivers can typically expect very large premiums, regardless of whether they are part of the NC reinsurance facility. According to the North Carolina department insurance, drivers who have been convicted of DWI or similar offenses could see their car insurance premiums rise up to 340%. Driving privileges can also be revoked for serious driving violations.
Questions frequently asked
What length of time do I need an SR-22 North Carolina?
In North Carolina, SR-22 forms do not need to be filled out. North Carolina has a Safe Driver Incentive Program that assigns SDIP points to your driving record for serious violations. Your record will remain on the SDIP points for three years. If you are deemed a high-risk driver your premium will be affected for three years starting from the date of your conviction and not the incident date. (A conviction is the date that your case is heard in the NC courts.
How can I obtain SR-22 insurance for North Carolina?
An SR-22 certificate is not a type insurance, but a certification that you have the minimum required insurance coverages in your state. However, North Carolina doesn’t use SR-22 forms. If you are a new driver in North Carolina and are trying to renew your license or are asked for proof of insurance, your insurance company will need to contact the NC DMV to issue a DL123 (or proof-of-insurance) form.
What is the cost of SR-22 insurance in North Carolina?
Although SR-22 forms don’t directly affect your insurance premium, they are required for drivers with major moving violations. Drivers who require an SR-22 form will usually pay higher insurance premiums. In North Carolina, SR-22 forms are not required but drivers can expect to pay an increase between 30% to 340% to their insurance premium depending on the severity of their moving violation and the amount of SDIP points added to their record.
Is there a penalty for not having insurance in North Carolina
Yes, North Carolina law explicitly states that the minimum liability requirements of $30,000/$60,000/$25,000 must be carried on all registered vehicles. Insurance companies are legally required to notify the NC DMV about any insurance cancellations or lapses. You will need to provide proof of insurance within ten days after receiving notice from the NC DMV that your policy has been terminated. Failure to comply with this deadline can lead to civil penalties/fees or the revocation of vehicle plates.
What are the requirements for SR-22 in other states?
North Carolina isn’t the only state to not use an SR-22 form. SR-22 forms do not need to be completed in Delaware, Kentucky and Minnesota. Each state may have its own form that is required to demonstrate financial responsibility or minimum insurance requirements.