Insurance and Financial Responsibility Flashcards

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

Answer: Bodily injury and property damage liability coverage meeting state minimum requirements

North Carolina requires drivers to carry minimum liability insurance covering bodily injury and property damage to others in an accident you cause.

What is uninsured motorist coverage?

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

Uninsured motorist coverage protects you when you are in an accident caused by a driver who has no liability insurance and cannot pay for your damages.

What happens if you are caught driving without valid insurance?

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

Driving without insurance carries severe penalties including fines, license and registration suspension, potential vehicle impoundment, and possible jail time for repeated violations.

What is the difference between liability and full coverage insurance?

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

Liability insurance pays for damage you cause to others. Full coverage adds collision (accident damage to your car) and comprehensive (non-accident damage like theft or weather) coverage.

What is an SR-22 filing?

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

An SR-22 is a form filed by your insurance company with the state certifying that you carry the required minimum insurance, typically required after DUI, driving without insurance, or multiple violations.

How does an at-fault accident affect your insurance?

Answer: Your premiums typically increase for 3-5 years

An at-fault accident typically causes insurance premium increases that last 3-5 years, with the amount depending on the severity of the accident and your driving record.