Auto insurance is a must for every car owner, but the type of insurance you need and the coverage you get depends on the state you live in. In North Carolina, the minimum required coverage for auto insurance is liability insurance. But, is liability insurance enough? What else should you know about auto insurance in North Carolina? This article will help you understand the basics of auto insurance in North Carolina, including the laws, the coverage types, the requirements, and the costs.
Table of Contents
- Auto Insurance Laws in North Carolina
- Types of Auto Insurance Coverage
- Auto Insurance Requirements in North Carolina
- Costs of Auto Insurance in North Carolina
- FAQs about Auto Insurance in North Carolina
Auto Insurance Laws in North Carolina
In North Carolina, auto insurance laws are regulated by the North Carolina Department of Insurance. Every driver in the state is required to carry liability insurance, which provides coverage if you are at fault in an accident and someone is injured or their property is damaged. Liability insurance does not cover your own injuries or damage to your own vehicle, and it has limits that vary depending on the policy.
In addition to liability insurance, you can also choose to get other types of auto insurance coverage, such as collision, comprehensive, medical payments, uninsured motorist, and underinsured motorist coverage. These types of coverage can provide additional protection and can be added to your policy for an extra cost.
It’s important to note that North Carolina is a “fault” state, which means that the driver who is at fault in an accident is responsible for paying for the damages. This is another reason why having adequate auto insurance coverage is important.
Furthermore, North Carolina also requires that all registered vehicles in the state must be covered by liability insurance. If you are caught driving without insurance, you could face penalties such as fines, license suspension, and even jail time.
Now that you know the basics of the auto insurance laws in North Carolina, let’s dive into the different types of coverage you can get.
Types of Auto Insurance Coverage
As mentioned earlier, liability insurance is the minimum required coverage in North Carolina. However, you may also want to consider other types of auto insurance coverage to protect yourself and your vehicle. Here are some of the most common types of coverage:
1. Collision Coverage
Collision coverage provides protection if your vehicle is damaged in a collision, regardless of who is at fault. This coverage usually comes with a deductible that you must pay before the insurance company will cover the rest of the cost.
2. Comprehensive Coverage
Comprehensive coverage provides protection against damage to your vehicle from things like theft, vandalism, and natural disasters. It also covers damages caused by hitting an animal. Like collision coverage, comprehensive coverage also comes with a deductible.
3. Medical Payments Coverage
Medical payments coverage provides payment for medical expenses for you and your passengers if you are injured in an accident, regardless of who is at fault. This coverage can help cover things like hospital bills, doctor’s fees, and other medical expenses.
4. Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured Motorist coverage provides protection if you are involved in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages. This type of coverage can help pay for medical expenses and damages to your vehicle.
5. Rental Car Reimbursement Coverage
Rental car reimbursement coverage provides payment for a rental car while your vehicle is being repaired due to an accident or covered loss. This coverage usually has a daily limit and a maximum number of days it will pay for a rental car.
Auto Insurance Requirements in North Carolina
As mentioned earlier, liability insurance is the minimum required coverage in North Carolina. The minimum coverage limits in North Carolina are:
Types of Coverage |
Minimum Coverage Limits |
|---|---|
Bodily Injury Liability |
$30,000 per person and $60,000 per accident |
Property Damage Liability |
$25,000 per accident |
It’s important to note that these are only the minimum coverage limits, and you may want to consider getting higher coverage limits to protect yourself and your assets.
Furthermore, North Carolina requires that all drivers carry proof of insurance in their vehicle at all times. If you are caught driving without proof of insurance, you could face penalties such as fines, license suspension, and even jail time.
Costs of Auto Insurance in North Carolina
The cost of auto insurance in North Carolina depends on several factors, including your age, driving history, type of vehicle, location, and the coverage types and limits you choose. According to the National Association of Insurance Commissioners, the average cost of auto insurance in North Carolina in 2018 was $648.31 per year.
However, your actual cost could be higher or lower than this average, depending on your individual circumstances. To get an accurate quote for auto insurance in North Carolina, you should shop around and compare quotes from multiple insurance companies.
FAQs about Auto Insurance in North Carolina
1. How can I get the best deal on auto insurance in North Carolina?
The best way to get the best deal on auto insurance in North Carolina is to shop around and compare quotes from multiple insurance companies. You can also look for discounts, such as safe driver discounts, multi-policy discounts, and good student discounts.
2. What happens if I get into an accident with an uninsured driver?
If you get into an accident with an uninsured driver in North Carolina, you may be able to file a claim with your own insurance company if you have uninsured/underinsured motorist coverage. This type of coverage can help cover medical expenses and damages to your vehicle.
3. How much auto insurance coverage do I need?
The amount of auto insurance coverage you need depends on your individual circumstances. It’s important to consider factors such as your assets, your income, and the value of your vehicle when deciding how much coverage to get. It’s also important to note that the minimum required coverage may not be enough to fully protect you in the event of an accident.
4. What happens if I don’t have auto insurance in North Carolina?
If you are caught driving without insurance in North Carolina, you could face penalties such as fines, license suspension, and even jail time. You may also be held personally responsible for any damages or injuries you cause in an accident.
5. Can I get auto insurance if I have a bad driving record?
Yes, you can still get auto insurance if you have a bad driving record, but you may have to pay higher premiums. You may also be limited in the types of coverage you can get.
Auto insurance is an important investment for all car owners in North Carolina. By understanding the laws, the coverage types, the requirements, and the costs, you can make informed decisions about the type of coverage you need to protect yourself and your vehicle. Take the time to shop around and compare quotes from multiple insurance companies to get the best deal and the most comprehensive coverage.