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SR-22 in North Carolina

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Published on May 28, 2024 | 8 min read

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Navigating the complexities of SR-22 insurance in North Carolina can be daunting, especially for those unfamiliar with the requirements and implications. SR-22 insurance in NC is required when you are involved in a traffic incident that may make you a high-risk driver, such as a DUI, an at-fault accident or driving without insurance. Understanding the specifics of SR-22 insurance is crucial, as it will prove you have sufficient insurance coverage to continue driving in the state. For instance, it is important to note that while most states call this certificate SR-22, North Carolina calls it a DL-123. Bankrate can help explain what SR-22 insurance North Carolina is, including how to obtain it, the associated costs and how it impacts your driving record and insurance premiums.

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.

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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 car 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 high-risk drivers 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 a 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 298 percent on average, according to average rates from Quadrant Information Services. Additionally, severe driving violations can result in loss of driving privileges.

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