NC DMV Insurance and Financial Responsibility 3 — Questions and Answers
Question 1: Driving a motor vehicle in North Carolina without liability insurance is classified as:
- A Class 3 misdemeanor (Correct answer)
- A civil infraction only
- A Class H felony
- A parking violation
Correct answer: A Class 3 misdemeanor
Operating a vehicle without required liability insurance is a Class 3 misdemeanor in North Carolina.
Question 2: The civil penalty the NC DMV charges for a vehicle owner's first insurance lapse is:
- $50 (Correct answer)
- $500
- $5
- $1,000
Correct answer: $50
The first lapse carries a $50 civil penalty, with higher penalties for repeat lapses.
Question 3: 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?
- 30 days (Correct answer)
- 7 days
- 6 months
- 1 year
Correct answer: 30 days
An insurance-lapse plate revocation in North Carolina generally lasts 30 days before reinstatement.
Question 4: After an insurance-lapse plate revocation, what must you do before the plate can be reinstated?
- Pay the civil penalty and restoration fee and show proof of current insurance (Correct answer)
- Retake the written driver knowledge exam
- Have the vehicle re-inspected by law enforcement
- Wait one full year with no violations
Correct 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.
Question 5: Who is responsible for making sure a registered North Carolina vehicle stays insured?
- The vehicle's registered owner (Correct answer)
- Only the person who drives it most often
- The insurance agent
- The county tax collector
Correct answer: The vehicle's registered owner
The registered owner is legally responsible for maintaining continuous coverage on the vehicle.
Question 6: 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:
- Not satisfied, because the insurer is not licensed in North Carolina (Correct answer)
- Satisfied, because she has some form of insurance
- Satisfied, as long as the policy limits are high enough
- Waived because she is a student
Correct 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.
Question 7: Knowingly giving false information to the DMV about having liability insurance can result in:
- Criminal charges and loss of registration privileges (Correct answer)
- A warning letter only
- A small late fee
- Nothing, if you buy insurance later
Correct answer: Criminal charges and loss of registration privileges
Falsely certifying insurance coverage is a criminal offense that can cost you your registration.
NC DMV Insurance and Financial Responsibility 3
Driving a motor vehicle in North Carolina without liability insurance is classified as: