As a personal injury attorney in North Carolina, I hear this from clients all the time. Unfortunately, in most cases, it is not true. At the very least, it is not what they believe it to be. In North Carolina, as in most states, you are required to purchase auto insurance to legally be allowed to drive on public roadways. Each state sets its own requirement as to the minimum amount of insurance and type of insurance that you must purchase to be a legal driver. The primary purpose of these requirements is to protect innocent persons from your negligent driving. In North Carolina it is called the Motor Vehicle Financial Responsibility Act and can be found at NCGS §20-279.21.