Which coverage is mandatory for vehicles registered in North Carolina?

In North Carolina, liability insurance is a mandatory requirement for all vehicles that are registered and operated on public roads. This type of insurance is crucial because it provides financial protection in the event that the policyholder is found legally responsible for causing bodily injury or property damage to others in an accident. The state has established minimum coverage limits for liability insurance to ensure that drivers are financially responsible for their actions behind the wheel.

While collision insurance, comprehensive insurance, and personal injury protection are valuable types of coverage that provide additional benefits, they are not legally required in North Carolina. Collision insurance covers damage to your vehicle resulting from a collision with another vehicle or object. Comprehensive insurance protects against non-collision-related incidents, such as theft, vandalism, or natural disasters. Personal injury protection, on the other hand, covers medical expenses and lost wages for the policyholder and passengers after an accident, regardless of fault. However, the state does not mandate these coverages, making liability insurance the only compulsory form of vehicle insurance in North Carolina.