Insurance and Financial Responsibility Flashcards

Driving a motor vehicle in North Carolina without liability insurance is classified as:

Answer: A Class 3 misdemeanor

Operating a vehicle without required liability insurance is a Class 3 misdemeanor in North Carolina.

The civil penalty the NC DMV charges for a vehicle owner's first insurance lapse is:

Answer: $50

The first lapse carries a $50 civil penalty, with higher penalties for repeat lapses.

If your license plate is revoked because of an insurance lapse and you do not qualify to keep it, how long must you typically go without the plate?

Answer: 30 days

An insurance-lapse plate revocation in North Carolina generally lasts 30 days before reinstatement.

After an insurance-lapse plate revocation, what must you do before the plate can be reinstated?

Answer: Pay the civil penalty and restoration fee and show proof of current insurance

Reinstatement requires paying the penalty and restoration fee and proving the vehicle is insured.

Who is responsible for making sure a registered North Carolina vehicle stays insured?

Answer: The vehicle's registered owner

The registered owner is legally responsible for maintaining continuous coverage on the vehicle.

A college student keeps her car registered in North Carolina but studies out of state and buys a policy from a company not licensed in NC. Her NC registration insurance requirement is:

Answer: Not satisfied, because the insurer is not licensed in North Carolina

Coverage from an insurer not licensed in North Carolina does not meet NC registration requirements.

Knowingly giving false information to the DMV about having liability insurance can result in:

Answer: Criminal charges and loss of registration privileges

Falsely certifying insurance coverage is a criminal offense that can cost you your registration.