SR-22 in North Carolina

As is true of most states, North Carolina requires all drivers to carry a minimum amount of auto insurance to drive legally on public roads. High-risk drivers may also be required to provide additional proof that they meet these minimum requirements. In many states, this insurance certificate is called an SR-22, but in North Carolina, it is called a DL-123. Drivers who have had their license suspended may need to have their insurer submit one to the state Department of Motor Vehicles (DMV).

What is SR-22 insurance?

An SR-22 is not actually a type of insurance. It is a form that is generated in conjunction with your auto insurance policy. An SR-22 is a certificate proving you are carrying the minimum insurance requirements for a specified time, which will vary by state. Typically, SR-22 certificates are required after a driver receives a serious driving violation, like a DUI (called a DWI in North Carolina).

SR-22 insurance in North Carolina is called a DL-123 certificate. Drivers who are trying to obtain a license after a serious driving violation may be required to provide proof of financial responsibility, or proof of minimum required insurance coverage, to the DMV in order to register their vehicle by means of a DL-123 form. In some cases, proof of financial responsibility may even be required to reinstate a driver’s license following a serious driving conviction.

To obtain the proper proof of financial responsibility to satisfy the NC DMV’s conditions, you will need to purchase an insurance policy and carry the required minimum limits of liability. In North Carolina, drivers are required to carry $30,000 in bodily injury liability per person, up to $60,000 bodily injury liability per accident (for two or more people) and $25,000 in property damage.

DL-123 in North Carolina

While SR-22 forms are not utilized in North Carolina, certain drivers — including teens, someone applying for their license for the first time in North Carolina and those convicted with a DUI or DWI — still must provide proof of insurance to the NC DMV. North Carolina uses standard form DL-123 to provide proof of insurance. DL-123 forms are sent by your insurance company and may be required for anyone getting an NC license for the first time or getting a license reinstated.

Who needs DL-123 insurance in North Carolina?

Not all drivers are required to carry DL-123 insurance in North Carolina. If you are an average driver who has been on the road for a while and does not have serious infractions, you may not need to have this type of North Carolina SR-22 insurance. If you fit in one of the following categories, however, you are likely to require a DL-123 certificate:

• You are a new driver applying for your license for the first time.
• You have had your license suspended or revoked, and are applying to have it reinstated.
• You are moving to North Carolina and applying for your North Carolina license for the first time.
• You are complying with a court order to demonstrate that you have coverage for your vehicle.

If you have lived in North Carolina for a while and are applying to renew your license, you should not need DL-123 insurance unless you fit in one of the previously-mentioned categories. If you are required to file a DL-123, you will need your insurer to file one on your behalf with the DMV.

Non-owner SR-22

High-risk drivers may opt to not purchase a vehicle at all after a serious moving violation. However, some states will still require a high-risk driver to furnish proof of financial responsibility even if they do not own a car, since that driver could easily borrow or drive another person’s vehicle. Anyone needing an DL-123 who does not own a vehicle would need to purchase a non-owners insurance policy carrying the state required limits of liability. In North Carolina, if you have a non-owners policy, your insurer will submit a DL-123 to the DMV on your behalf.

How much does DL-123 insurance cost in North Carolina?

While a DL-123 itself won’t impact insurance costs, the cause of needing one can. North Carolina operates under a Safe Driver Incentive Plan (SDIP). SDIP points are added against your driving record following certain moving violations. A DWI is one of the most serious violations you could get, potentially adding 12 SDIP points onto your driving record — the highest number of points possible. SDIP points stay on your driving record for three years.

In North Carolina, most high-risk drivers, like those who have received a DWI, are assigned to the North Carolina reinsurance facility which is essentially a high-risk insurance pool. Although some insurance companies may still choose to provide standard coverage to you as a high-risk driver, most companies will place you in this facility rating. High-risk drivers can typically expect very high premiums, regardless of whether they are part of the reinsurance facility. In fact, Drivers with DWIs or other similar convictions could see their car insurance premiums increase by 311 percent on average, according to average rates from Quadrant Information Services. Additionally, severe driving violations can result in loss of driving privileges.

Frequently asked questions

• • How long do I need an SR-22 in North Carolina?

    SR-22 forms are not required in the state of North Carolina. However, North Carolina does operate under a Safe Driver Incentive Plan which assigns SDIP points against your driving record for serious moving violations. SDIP points stay on your record for a period of three years and if you are considered a high-risk driver, your insurance premium will be impacted for three years from your conviction date, not your incident date. A conviction date is the date your charge is processed through the NC court system.

  • How do I get SR-22 insurance in North Carolina?

    You do not need SR-22 insurance in North Carolina, no matter what your circumstances. Instead, the state utilizes a form called the DL-123, which is roughly the same thing as SR-22 insurance. If your situation requires that you have DL-123 insurance, you will be able to request this form from your insurer. The carrier will generate the necessary form and submit it directly to the North Carolina DMV. You should not have to take any steps beyond requesting the document from your insurance company.

  • Are there penalties for not carrying insurance in North Carolina?

    Yes, North Carolina law explicitly states that the minimum liability requirements of $30,000/$60,000/$25,000 must be carried on all registered vehicles. In fact, insurance companies are legally obligated to report any insurance lapses or cancellations to the NC DMV. If the DMV has received notice that your policy has terminated, you will need to furnish proof of insurance within 10 days from your notice date. Failure to do so can result in civil penalties/fees and revocation of a vehicle’s plates.

  • Can I get car insurance if my license is suspended in North Carolina?

    If your license is suspended, it is still possible to obtain car insurance in North Carolina. However, the process may be more difficult and depends on the reason behind your license suspension. North Carolina requires liability insurance, so insurance companies in the state cannot refuse policies to drivers who have a suspended license. In some cases, insurers may transfer policies to the North Carolina Reinsurance Facility, which ensures coverage for drivers of all risk levels.

  • What alternatives to DL-123 insurance exist in other states?

    DL-123 insurance forms are unique to North Carolina, but other states have similar forms that are issued for drivers requiring them. The most common of these is the SR-22, which is required in many states for drivers who have had their license suspended. Generally, these forms are submitted to the state’s DMV to prove that the individual named does have the required minimum amount of auto insurance to be on the road legally. Although SR-22s are the most common type, Virginia and Florida issue a similar form called the FR-44, while Maryland’s version is called the FR-19 and Indiana has the SR-50. Each state’s certificate has rules and restrictions that are unique to that location.