SR-22 in North Carolina | Bankrate

Getting SR-22 insurance in North Carolina can be daunting, especially for those unfamiliar with the requirements. SR-22 insurance is actually a certificate required for some high-risk drivers, such as those convicted of a DUI or coverage lapse. However, it is important to note that while most states call this certificate an SR-22, North Carolina calls it a DL-123 form and utilizes it for high-risk drivers, young drivers and new drivers to the state. 

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 certificates in North Carolina are called DL-123 forms. Similarly, drivers who are trying to obtain or reinstate 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 by means of a DL-123 form.

To obtain the proper proof of financial responsibility to satisfy the NC DMV’s conditions, you will need to purchase an insurance policy that meets the required minimum liability limits. In North Carolina, drivers must carry at least 30/60/25 of liability coverage, meaning $30,000 per person and $60,000 per accident for bodily injury, plus $25,000 for property damage. However, beginning July 2025, the state will increase these minimum limits to 50/100/50. Insurance providers adjust policies automatically to comply with new state requirements, but drivers may see slight rate increases as a result, especially if they carry minimum coverage policies. 

DL-123 in North Carolina

While SR-22 certificates 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 form:

• 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, North Carolina drivers with DWIs or other similar convictions could see their full coverage car insurance premiums increase by 283 percent, according to February 2025 average rate data 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 certificates 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 requires all registered vehicles to carry minimum liability coverage of $30,000/$60,000/$25,000 to avoid penalty. Starting July 1, 2025, these minimum limits will increase to $50,000/$100,000/$50,000, but don’t worry, your insurance provider should update your policy to reflect this change automatically. However, insurance companies are obligated to report any lapses or cancellations to the NC DMV. If the DMV is notified that your policy is no longer active, you must provide proof of insurance within 10 days of receiving the notice. Failing to do so may result in civil penalties, fees or even the revocation of your vehicle’s registration plates.

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

  Yes, you can get car insurance if your license is suspended in North Carolina, but it may be more challenging and expensive. Insurance companies typically view drivers with a suspended license as high-risk, leading to higher premiums. You might need to file an SR-22 certificate (DL-123 form in North Carolina) to prove you have the required coverage. Although you can purchase a policy while your license is suspended, it is essential to inform the insurance company of your situation to ensure you are meeting all legal requirements. Additionally, having insurance during your suspension period can help you avoid further penalties and make it easier to reinstate your license once you meet the state’s conditions for reinstatement.

• Do all carriers offer SR-22 insurance in North Carolina?
  

  Many carriers offer DL-123 insurance in North Carolina, but some carriers effectively price out high-risk drivers with exorbitant rate hikes, while other carriers specialize in providing more affordable coverage to drivers who require DL-123 insurance. So, while DL-123 insurance is widely available, the cost of coverage will likely serve as a filter for evaluating potential options.