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To create a bill of sale for a vehicle that includes a promissory note and addresses the buyer's obligation to obtain insurance, it is essential to include specific language that clearly outlines the insurance requirements and the buyer's responsibilities.

Insurance Requirements in Bill of Sale
The North Carolina Administrative Code provides a comprehensive list of information that must be included in a bill of sale for a motor vehicle. Among these requirements is the cost of insurance to the buyer, if any, and an explanation of the type and amount of coverage (19A NCAC 3D.0228). This regulation ensures that the buyer is informed about the insurance costs and coverage details at the time of sale.

Buyer’s Obligation to Obtain Insurance
In Texas, when insurance is required in connection with a vehicle sale contract, the seller must provide the buyer with a statement that clearly and conspicuously states that insurance is required. The buyer must be given the option to furnish the required insurance either through existing policies or by procuring equivalent coverage through any authorized insurance company (Ford Motor Credit Co. v. Soto, 671 S.W.2d 620 (1984); Southwestern Inv. Co. v. Mannix, 557 S.W.2d 755 (1977)). This ensures that the buyer is aware of their obligation to obtain insurance and has the flexibility to choose their insurance provider.

Seller’s Option to Provide Insurance
Several cases illustrate the seller's option to provide insurance if the buyer fails to do so. For instance, in Toellner v. Trevino, the court found that if the buyer did not carry insurance, the seller could furnish the insurance and charge the buyer for the premium (Toellner v. Trevino, 409 S.W.2d 426 (1966)). Similarly, in McConnell v. Harris Chevrolet Co., the contract allowed the vendor to insure the vehicle against fire and theft to protect both the purchaser and the seller, with the premium being secured by the mortgage (McConnell v. Harris Chevrolet Co., 147 So. 827 (1933)).

Including Insurance Costs in the Promissory Note
It is common practice to include the insurance premium in the promissory note. In the case of Commerce Trust Co. v. Denson, the insurance premium was included in the total time sales price and financed as part of the installment payments (Commerce Trust Co. v. Denson, 437 S.W.2d 94 (1968)). This approach ensures that the cost of insurance is accounted for in the financing arrangement and provides clarity on the buyer's financial obligations.

Sample Wording for Bill of Sale
Based on the regulations and case law, the following sample wording can be used in a bill of sale to address the buyer's obligation to obtain insurance:

"The buyer agrees to obtain and maintain insurance coverage for the vehicle, including but not limited to liability, collision, and comprehensive coverage, as required by law and as specified in this agreement. The buyer may furnish the required insurance through existing policies or by procuring equivalent coverage through any authorized insurance company. If the buyer fails to obtain the required insurance, the seller may, at their option, furnish the insurance and charge the buyer for the premium. The cost of the insurance premium, if provided by the seller, will be included in the promissory note and financed as part of the installment payments."

This wording ensures that the buyer is aware of their obligation to obtain insurance, provides flexibility in choosing an insurance provider, and outlines the seller's option to provide insurance if necessary.

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