North Carolina (NC) Teen Auto Insurance Laws, Rates & Requirements

The state of North Carolina has one of the youngest starting ages for drivers in the country, but it also has one of the longest holding periods for learners licenses in the nation. This is all a part of North Carolina’s Graduated Driver Licensing program –a program that has helped reduce the state’s number of teen auto accidents and fatalities. According to the Insurance Institute for Highway Safety (IIHS), the best Graduated Driver Licensing systems include a learner's stage that lasts at least 6 months. The North Carolina GDL system has this provision covered, and more. 

Please continue reading to learn more about North Carolina’s teen driving laws and the consequences for violating them.

North Carolina Graduated Driver Licensing (GDL) and Driver License Requirements

In the state of North Carolina, teens must gradually make their way through  three levels before obtaining a full license. These include:

•    Limited Learner Permit
•    Limited Provisional License
•    Full Provisional License

Limited Learner Permit
The North Carolina Department of Transportation states:

If you are at least 15 years of age and have completed an approved driver education course that meets North Carolina requirements and can present a Driving Eligibility Certificate (issued by the public school system), a high school diploma or its equivalent, you may apply for a Level One Limited Learner Permit to operate vehicles requiring a Class C License.

To obtain a limited learner permit, you must be at least 15 years of age but less than 18 years of age. You must reside in the state of North Carolina and:

•    Pass the written, signs, and vision tests
•    Present proof of residency
•    Provide your social security card

Limited Provisional License
To obtain a limited provisional license, you must show proof that you held the limited learner permit for at least 12 months. In addition, your driving record must be free of convictions, moving violations, seat belt infractions, and cell phone infractions, within the preceding 6 months.

Full Provisional License
After successful completion of levels 1 and 2, and if you have maintained a clean driving record, you are eligible to receive a level three provisional license. Continue to the next section to learn about restrictions for each level.

North Carolina Teen Driving Laws and Enforcement

If you are a teen and you hold a limited learner permit, the following rules apply as outlined by the North Carolina Department of Transportation:

•    During the first six months, a Level One permit authorizes you to drive between the hours of 5 a.m. and 9 p.m. while accompanied by your supervising driver (a parent, guardian, grandparent or authorized driver with a valid driver’s license for at least 5 years)
•    Six months from Level One issuance, you are eligible to drive anytime with your supervising driver
•    You are not permitted to use a mobile telephone or other additional technology associated with a mobile telephone while operating a motor vehicle on a public street or highway or public vehicular area
•    All passengers must be restrained by seatbelt or child safety seat
•    No one except the driver and the supervising driver are allowed in the front seat

Level two limited provisional license holders must follow the rules listed below as outlined by the North Carolina Department of Transportation:

•    You may drive without supervision from 5 a.m. until 9 p.m. and at any time when driving directly to or from work or any volunteer fire, rescue or EMS (emergency medical service), if you are a member
•    Supervising driver must be seated beside the driver
•    When the license holder is driving the vehicle and is not accompanied by the supervising driver, there may be no more than one passenger under 21 years of age in the vehicle. This limit does not apply to passengers who are members of the license holder's immediate family or whose primary residence is the same household as the license holder. However, if a family member or member of the same household as the license holder who is younger than 21 years of age is a passenger in the vehicle, no other passengers under 21 years of age who are not member of the license holder's immediate family or members of the license holder's household, may be in the vehicle
•    You are not permitted to use a mobile telephone or other additional technology associated with a mobile telephone while operating a motor vehicle on a public street or highway or public vehicular area

Under the terms of the full provisional license, all restrictions will be lifted. You are still restricted from using your cell phone while driving.


If you violate any of the conditions listed above, you could lose your driving privileges or your driving privileges may be delayed. Under the terms of the full provisional license, you are still restricted from using your cell phone while driving.

North Carolina Cell Phone Use/Texting While Driving Laws

In the state of North Carolina, it is against the law for all learner, provisional and full license holders to drive while talking on a cell phone or texting, with the exception of emergency situations. The fine for violating this North Carolina cell phone/text messaging laws is $100.

North Carolina Teen DUI Laws

In the state of North Carolina, underage drinking is against the law. Underage drinking while driving is also considered a serious crime. North Carolina has a true zero tolerance law which means if you get caught drinking with any amount of alcohol in your system – even a drop, you face license suspension.   In some cases, your driving privileges may be suspended until you turn 21. To give you an idea of all it takes to fail a chemical test in the state of North Carolina, a blood alcohol concentration level (BAC) of 0.02% is equal to as little as one beer, one glass of wine or one mixed drink. It may be even less for some people. If you want to keep your license and stay safe, just don’t drink and drive

North Carolina Teen Auto Insurance Requirements

In the state of North Carolina, auto insurance is the law for all drivers. All North Carolina drivers must carry minimum auto liability insurance in the amounts of: $30,000/$60,000 for bodily injury, $25,000 for property damage, $30,000/$60,000 uninsured/underinsured motorist bodily injury, and $25,000 uninsured/underinsured motorist property damage liability. Because North Carolina follows a Tort system and the risk of an auto collision is significantly higher during a teen’s first year behind the wheel, North Carolina auto insurance companies recommend purchasing higher amounts of coverage than the legal limits. Under North Carolina’s Tort system, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for any and all damages. Damages are usually handled through the at-fault person's insurance company.

Tip: If you plan to add a teen driver to your policy, expect an annual rate increase of $1,200 up to $4,900 a year. The average increase is around $2,171 a year.