The state of North Carolina requires all drivers to own auto liability insurance policy, this is the only mandatory coverage, however it is always recommended to all drivers to have comprehensive, collision and under/uninsured motorist coverage.
Liability insurance will take care of expenses related to bodily injury, damage to property or deaths the insured may cause to other parties involved in the accident.
The minimum liability coverage requirements by the state of North Carolina are:

• $30,000 to pay for one person's bodily injuries or death
• $60,000 to pay for two or more people's bodily injuries or death
• $25,000 to pay for property damage per accident

You are required to prove the DMV you own the correct car insurance policy; however your insurance carrier is obligated to notify the DMV within 20 days after you purchase your liability coverage. It will also notify the DMV if you cancel it or your policy expires. You'll then be required to demonstrate that you are properly insured by another carrier or in the planning on renewing your policy with the same carrier. This must be taken care of in no longer than 10 days.
If you are planning on canceling your liability insurance coverage, be sure to first turn in your license plates to the DMV nearest to your location.
As previously mentioned, additional to mandatory insurance coverage, there are available other types of coverages. Adding these coverages to your insurance policy will help pay for those expenses in which Liability has no reach.

Most common additional coverages are Comprehensive, Collision, Uninsured / Underinsured motorist.
First one, Comprehensive coverage comes in handy when your car is damaged by an event not related to an automobile accident, for example a fire in a parking lot, a flying object smashes into the windshield during a tornado or high winds, etc. On the other hand, Collision coverage, as its name explains it, will take care of the costs related to the collision, no matter if it is physical damage caused to your vehicle because of a collision in a supermarket parking lot or on a high speed free way, collision coverage will help get your vehicle fixed and ready to be used again. Take note that Collision coverage will only pay for damage caused to your vehicle, collision coverage will not help with medical or legal expenses at any moment or under any situation.

Uninsured and Underinsured motorist coverage will help you in the event of an accident in which the responsible for causing it is either uninsured or under insured and can't be financially responsible of your expenses and your passengers. Your insurance company will pay for your medical expenses and those accompanying you, then the insurer will be enabled to pursuit reimbursement from the driver that caused the accident. Uninsured motorist coverage is also used in hit and run situations, regardless the intensity of the hit and run. These coverages will help prevent you from paying from your own pocket when you had no fault in an accident.