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Focus on Transportation and Dealerships: Enforcement Up, North Carolina Enacts Stricter Insurance Law

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North Carolina has passed a new law that will allow increased enforcement on out-of-state commercial vehicle operators who illegally register vehicles by listing their place of residence or business in the state to take advantage of cheaper insurance rates.
August 25, 2016

North Carolina has passed a new law that will allow increased enforcement on out-of-state commercial vehicle operators who illegally register vehicles by listing their place of residence or business in the state to take advantage of cheaper insurance rates.

Due to insurance rates in North Carolina being low, many individuals and companies attempt to obtain those rates by registering and insuring vehicles, including tractor-trailers and commercial buses, in the state despite never even driving in the state.  

The state enacted a similar law in 2008 that was limited to passenger vehicles only. Based on complaints and continued violations by operators with no nexus in the state, the new law was passed to include commercial vehicle operators.   

The law will go into effect in December of 2016 and allow the state to prosecute illegal operators on felony charges. The law will also add a number of anti-fraud and criminal provisions for violators.

Contact your RubinBrown advisor today for a detailed consultation regarding this legislation and how it may effect you.

 

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For more information, please contact:

  • Aaron Pollard, CPA, CGMA — St. Louis
  • Manager & Vice Chair
  • Transportation & Dealerships Services Group
  • 314.290.3457
  • aaron.pollard@rubinbrown.com