What type of insurance is mandatory in North Carolina?

In North Carolina, liability insurance is the type of insurance that is mandatory for all drivers. This requirement is in place to ensure that all motorists can cover the costs associated with injury or damage they may cause to another driver or their property in the event of an accident. Liability insurance typically consists of two components: bodily injury liability, which covers medical expenses and lost wages of the other party, and property damage liability, which covers damages to another person's vehicle or property.

Collision insurance and comprehensive insurance are optional types of coverage that provide additional financial protection but are not legally required to drive a vehicle in the state. Collision insurance helps cover damages to your own vehicle resulting from a collision, while comprehensive insurance protects against damages from non-collision-related incidents, such as theft or natural disasters. Uninsured motorist insurance is also optional, even though it is highly recommended, as it covers injuries and damages if you are in an accident with a driver who does not have insurance or has insufficient coverage.

Thus, liability insurance stands out as the only mandatory type required to legally operate a vehicle in North Carolina.