In North Carolina, financial responsibility can be established only by meeting the minimum insurance requirements. So motorcycle and scooter operators must purchase motorcycle insurance in North Carolina.
Motorcyclists must choose an insurance plan that meets the state’s requirements and insurance plans. This can be done by choosing a licensed insurance company and agent. Although options exist for choosing an insurance policy that offers differing levels of coverage for medical, funeral and various other expenditures that are incurred during traffic accidents, the mandatory minimum insurance requirements are as follows:
- Physical injury limit of $30,000 for one individual in a single accident;
- Physical injury limit of $60,000 for more than one individuals in a single accident;
- Property damage limit of $25000per occurrence.
Once you purchase the motorcycle liability coverage, your insurance company will be responsible for notifying the North Carolina Division of Motor Vehicles. Even then you are obligated to furnish the proof of insurance if ever requested by the law enforcement agents. You can accomplish this by showing the valid insurance card, certificate of insurance (FS-1), or by providing the policy number and company name.
When your coverage expires, the DMV will be notified by your insurance company once again and you will be sent a form FS 5-7 notice. Owners must then restate their coverage and pay the listed fine. They will also have to complete the form and mail it back within ten days. If they fail to comply with this procedure their plates are likely to be suspended for 30 days. Motorcycle owners will also have to pay $50 in fine, license plate fee and $50 in service fee as well as submitting a Form FS-1 to indicate their current coverage.
High performance motorcycles and riders with a poor driving record will have to pay higher premiums. Therefore you should consider the cost of insurance before buying a motorcycle. The state laws require continuous insurance for as long as the vehicle has valid plates. So if you are selling your bike and turning in your plates, make sure to do this before cancelling your insurance. Motorcyclists are also advised to pay their premiums before the due date to avoid the risk of cancellation as there are no grace periods.