In each state, there are different requirements to get auto insurance. It is important to know the requirements in your state to ensure you are complying with them.
If you are a North Carolina driver you may be wondering what your auto insurance choices are. Having the right coverage can give you peace of mind that you are protecting yourself and others. To help you understand your options, we’ve put together a list of the North Carolina auto insurance requirements.
Auto Insurance Coverages
When it comes to auto insurance there are several different types of coverages you should understand.
Liability coverage is a basic form of auto insurance that will pay for a few different things in the event you are in an accident. It will pay for property damage and any bodily injury that you cause. This policy will also cover you and your family if they are using your automobile with your permission.
The next type of auto insurance coverage is comprehensive. This covers any physical damage to your vehicle that is non-collision related. This coverage protects you if you collide with an animal like a deer or a moose.
Another type of auto insurance coverage is collision. Collision insurance protects your vehicle if you were to collide with a stationary object or another vehicle.
One last auto insurance coverage that you can have is called uninsured/underinsured motorist coverage. This coverage protects you in two ways. The first way is in the event you were hit by a motorist who didn’t have any auto insurance coverage at all.
The second way is in the event you were hit by a motorist who didn’t have the proper limits to cover an accident. Uninsured and underinsured will also help you pay for any injury or lost wages that you may suffer. It extends protection to the passengers in your vehicle at the time of an accident as well.
In both these scenarios, the other driver would have to be found at fault for you to use this coverage.
Other Types of Auto Insurance Coverage
There are other types of auto insurance coverages that you can have in place. Gap coverage is a great way to protect yourself if you have financed or leased a vehicle. It is the difference between your car’s actual cash value and the remaining balance you owe on your loan.
This is a great way to avoid being upside down on your loan. Another auto insurance coverage that is available for medical payments. Known as “med pay” this coverage goes towards medical bills.
It will cover funeral expenses for you or a passenger in your vehicle. There are limits to this insurance. It covers between $5000 and $10000 and it does not matter whose fault the accident was.
You can also include rental car reimbursement insurance. If you had an accident and weren’t able to drive your vehicle this coverage would pay for a rental car while your car was being fixed.
Roadside assistance coverage would help you if your car were to breakdown on the side of the road. It would cover the cost of battery charges, towing, or other related expenses. Both rental car reimbursement and roadside assistance have coverage limits as well.
North Carolina Auto Insurance Requirements
There is a certain amount of auto insurance drivers in North Carolina must carry. For starters, you must carry your proof of insurance while driving. In the event you’re pulled over you must show this to law enforcement personnel.
You also have set limits of coverage that you have to carry. The limits of your auto insurance determine the max amount your insurers will pay on a claim. In North Carolina, the liability insurance minimum is 30/60/25.
This means $30,000 for bodily injury coverage per person. This is the total amount paid for a single person injured in an accident. The next limit is $60,000. This is the maximum amount paid if more than one person gets hurt in an accident.
The $25,000 is for the property damage in a single accident. This is the maximum amount paid for damages you cause during an accident.
North Carolina also requires you to have uninsured/underinsured motorist coverage. These limits must be 30/60/25 like your liability insurance.
Medical payments, collision coverage, and comprehensive coverage are not required. Yet, these coverages are highly recommended.
Things To Consider When Buying Auto Insurance in North Carolina
When buying auto insurance, one thing to consider is making sure you are fully covered. Even if you are meeting the state requirement for your auto insurance that may not be enough to fully protect you.
For example, if you were in an accident and your bodily injury limit was $30,000, you could exhaust your coverage amount. This is especially true if you were to injure many people in one accident. The results of not having enough coverage would mean you would be responsible for paying the difference.
Another thing to consider when buying auto insurance is going with a local agent or a reputable insurance company. A local insurance agent will walk through your coverage options and customize a policy to help you meet your needs.
You also want to do research on your insurance provider to learn about their claim process and their ratings from other insurers. Insurance providers like Amistad Insurance Services have a great reputation with drivers in North Carolina.
Factors That Impact the Rates of Insurance in North Carolina
When buying auto insurance, it is important to know the factors that can affect your rate. Many auto insurance companies will use consumer report information such as driving record and past claims.
In North Carolina, insurance companies will use information such as:
- Education and occupation
- Marital status
Possible Penalties for Not Meeting the Requirements
If you don’t adhere to the North Carolina auto insurance requirements you can receive a penalty. The first time your auto insurance lapses you can expect a $50 fine.
If you are caught not meeting the minimum requirements a second time you will receive a $100 fee. For every time you are caught not in adherence after that, it will a $150 fee. With each lapse in coverage, you will have to pay a $50 restoration to relicense your vehicle.
Get Help Finding Affordable Auto Insurance in North Carolina
It is important to be in compliance with the North Carolina auto insurance requirements. Although North Carolina may have higher liability limits than other states, you want to make sure you are completely protected.
If you have questions about your auto insurance coverage or you are looking for affordable rates, contact us for a free quote today!