Teen Driver Insurance in North Carolina

Tojocu Editorial Team | Last verified: April 2026

North Carolina requires teenagers between 15 and 17 years old to go through a process called graduated licensing before receiving full driving privileges. Graduated licensing involves strict requirements for teen drivers to gain on-the-road experience necessary to drive a vehicle with no supervision and minimal restrictions. Under North Carolina's graduated drivers licensing statute, there are three levels of driving privileges for persons less than 18 years old: Level 1 – limited learner's permit; Level 2 – limited provisional license; and Level 3 – full provisional license. Each level has different statutory requirements for eligibility and restrictions that apply to the privilege. The system aims to build driving skills progressively while maintaining safety through carefully structured limitations at each stage.

Licensing Timeline

A person at least age 15 and under age 18 may obtain a limited learner's permit if the person has passed a driver education course and a written test administered by DMV. Teens who are 16 years old and have held a limited learner's permit for at least nine months are eligible to apply for a provisional license. To obtain the provisional license, the teen must complete and pass the road test administered by the DMV and have no moving violation within the last six months. The teen must have completed a driving log detailing a minimum of 60 hours as the operator of a motor vehicle, with at least 10 hours of the required driving occurring during nighttime hours.

GDL Restrictions

Level 1 permit holders must have a supervising driver in front seat, must have no other person in front seat, and must for first six months, drive only between the hours of 5:00 a.m. and 9:00 p.m. With a Level 2 Limited Provisional License, drivers can drive unsupervised from 5 a.m. to 9 p.m. and to/from work or any volunteer fire, rescue or emergency medical service. When driving unsupervised, there may be one passenger that is under 21 that is not a member of the same household as the driver if they are being driven directly to or from school. All restrictions include prohibition of mobile phone use and mandatory seat belt use for all occupants.

Permit holding period: 9 months. Nighttime restriction: <cite index="3-8">For the first six months after issuance, the permit holder may drive only between the hours of 5 a.m. to 9 p.m., with a supervising driver</cite>. <cite index="11-2,11-6">With a Limited Provisional License, unsupervised driving 5 a.m. to 9 p.m., after 9 p.m. until 5 a.m. a supervising driver is required</cite>. Passenger restriction: <cite index="3-22,3-23">When not accompanied by the supervising driver, the number of passengers allowed in the vehicle under the age 21 is restricted to ONE. If all passengers under the age of 21 are members of the driver's immediate family or members of same household as the driver, there is no 'under 21 limit'</cite>. Cell phone restriction: <cite index="3-18">It is unlawful for the driver of a motor vehicle under the age of 18 to use a mobile/cellular telephone for any purpose, including the use of any features related to a mobile/cellular telephone</cite>. Supervisor requirement: <cite index="3-14,3-15">A supervising driver must be a parent, grandparent, or guardian of the permit holder or license holder or a responsible person approved by the parent or guardian or the Division. A supervising driver must be a licensed driver who has been licensed to drive for at least five years</cite>. Nighttime exceptions include: employment, volunteer fire, rescue, or emergency medical service. Passenger exceptions include: immediate family members, household members.

Insurance Requirements

Currently, insurance policies are required to have minimum liability limits of $30,000 per person and $60,000 per accident for bodily injury and $25,000 per accident for property damage. Starting July 1, 2025, for all new or renewed policies on or after that date, the minimum limits for bodily injury will be increased to $50,000 per person and $100,000 per accident and the minimum limits for property damage will be increased to $50,000. All vehicles with a valid North Carolina registration are required by state law to have continuous liability insurance provided by a company licensed to do business in North Carolina. North Carolina also requires uninsured and underinsured motorist coverage as part of all policies sold in the state.

Minimum liability limits: $50,000 bodily injury per person / $100,000 per accident / $50,000 property damage. Insurance system: at-fault. Uninsured/underinsured motorist coverage is required. <cite index="28-18,28-19">North Carolina requires that every car insurance policy sold in the state include both uninsured motorist bodily injury coverage and uninsured motorist property damage insurance. Underinsured motorist coverage may be required depending on how much coverage you carry under your policy</cite>.

Insurance Considerations for Teen Drivers

Teen drivers typically face higher insurance premiums due to their inexperience and statistical risk profile. The upcoming increase in minimum coverage limits effective July 2025 may result in modestly higher premiums for all drivers, though industry estimates suggest the increase will be relatively small. families typically consider carrying coverage above the minimum requirements to provide better protection for their teen drivers, particularly given the financial exposure that can result from serious accidents.

Practice Paths to Licensure

Option 1: Complete driver education course, pass tests, and log supervised hours. 60 supervised hours required; 10 night hours required; driver education required; road test required.

Fees

Permit fee: $25.50. License fee: $21.50. <cite index="5-26">Payment for the $21.50 learner's permit fee</cite>, <cite index="10-7">There is a $25.50 fee to obtain a level 1 limited learner permit</cite>.