Suspended License Insurance in North Carolina


Drivers may still be eligible for a hardship license, allowing them to drive under special circumstances. You may also want to consider non-operational coverage if your vehicle is stored for the duration of your suspension. After you have reinstated your license, it may be more difficult to find affordable insurance. However, there are still quite a few options available. A number of companies specialize in policies for high-risk drivers. In addition, the North Carolina Reinsurance Facility provides coverage for unsafe drivers.


Options for Suspended licenses


There are a number of reasons a driver’s license may be suspended in North Carolina. Some include accumulating unpaid tickets, reckless driving, failure to obtain current car insurance, and driving under the influence. However, in North Carolina, the most common reason for license suspensions is the accumulation of points. The point system requires drivers to attend a Driver Improvement Clinic after the accumulation of 7 points. Collecting more than 12 points within a three-year period can mean a license suspension anywhere from 60 days to an entire year. Visit the North Carolina DMV website to learn more about the point system.


Drivers should be aware that all license suspensions in North Carolina become part of your official North Carolina driving record. This can have great consequences on your car insurance rates and have negative effects on employment opportunities and background checks. The fee to reinstate your driver’s license is $65. However, for a DWI, it will cost $130.


Under special circumstances, drivers with a suspended license can apply for a hardship license. A hardship license offers limited driving privileges for drivers with a good reason to travel. These can include:


  • Driving to and from work
  • Seeking medical care
  • Running necessary household errands


North Carolina’s Safe Driver Incentive Plan rewards defensive drivers while increasing insurance rates for unsafe drivers, and those with suspended licenses. Drivers found guilty of traffic violations receive points, each of which raises the price of your car insurance. Just one point raises your insurance premium by 30%. Drivers with a maximum of 12 points can pay up to 340% more. Learn more about North Carolina’s incentive program at the North Carolina Department of Insurance.


Drivers with a hardship license must obtain car insurance to continue driving. However, drivers with a hardship license are considered high-risk drivers by the insurance industry. There are many auto insurance providers that specialize in policies for high-risk drivers, and other drivers who have had suspended licenses but need insurance. North Carolina drivers are required to have the following liability insurance:


  • $25,000 property damage
  • $30,000 bodily injury per person
  • $60,000 bodily injury per accident


Since liability insurance is required in North Carolina, insurance companies cannot refuse the policies to drivers with a history of suspended licenses who need insurance. However, insurance companies can choose to have individuals with poor driving records insured through the North Carolina Reinsurance Facility. This allows the costs of drivers with a history be shared among members.


Living with drivers with a history of suspended licenses is another reason you may have to maintain your current car insurance. In this case, you can re-assign the driver under your policy. Another option may be to purchase insurance, but make yourself the named insurance, and make the drivers with a history, simply just a driver on the policy.


Individuals with a suspended license may choose to store vehicles in a garage for the duration of the suspension. In this case, comprehensive insurance coverage is a good option to protect your vehicle. This covers damages caused to your car while it is in storage.


Individuals who drive without liability insurance are in danger of having their license suspended. In order to reinstate your license after an insurance violation, you must pay a $50 fee. In addition, license plates will be revoked for one month.


Drivers with high premiums may be able to reduce their rates by taking part in traffic school. Drivers have the opportunity to earn safety points on their license and reduce monthly rates. Driving your car more safely in the future will help save money on insurance coverage and prevent future suspended licenses.

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