Auto insurance is designed to help protect you from financial loss resulting from a car accident. A typical auto policy contains two main coverages: Liability coverage if you injure someone or damage their property, and coverage for your vehicle if it is damaged in a crash or some other event.

 

Every state has requirements for auto insurance. Here we will discuss the minimum auto insurance requirements for North Carolina, and peek into important additional coverages.

 

Liability Coverage: Required Auto Insurance In North Carolina

 

North Carolina requires Liability insurance coverage with limits of:

 

• $30,000 bodily injury per person
• $60,000 bodily injury per accident
• $25,000 property damage per accident

 

The limits are referred to as split limits and are often expressed this way: 30/60/25

 

These minimum limits mean, if you get in a crash and injure one person, the most your policy will pay to cover their injuries is $30,000. If you injure more than one person, your policy pays a maximum of $60,000 for bodily injury liability for the entire accident.

 

If you damage someone else’s property in the accident, your policy pays a maximum of $25,000.

 

Here’s an example:

 

Let’s say you rear end the car in front of you. The cost to repair their vehicle is $3,000. They also sought medical treatment for a stiff neck resulting in $3,500 for medical bills.

 

Your policy pays for their medical bills under your bodily injury liability limit of $30,000. It also covers the cost to repair their car under your property damage liability limit of $25,000.

 

Liability coverage doesn’t have a deductible, so your Liability coverage responds with no out of pocket cost to you, other than your monthly premium.

 

Uninsured Motorist Coverage: A Must Have in North Carolina

 

North Carolina also requires residents to carry Uninsured Motorist coverage equal to their liability limit. This coverage kicks in if someone else is at fault for the accident and they don’t have insurance.

 

North Carolina enjoys one of the lowest rates for uninsured motorist incidents, but the national average hovers around 13 percent. Keep in mind; it takes only one uninsured driver to wreak financial havoc on your life.

 

Let’s look at a scenario:

 

You’re stopped at a red light and then, WAMMO! Someone slams into the back of your new car. The police arrive and ticket the other driver. They also give you an exchange of information sheet that states the other driver is uninsured.

 

When you get home, you contact your insurance company to use your Uninsured Motorist coverage to repair your car. The coverage acts like the other party’s insurance and pays your car repairs and any medical bills you may have from the accident up to the limit of your policy.

 

Additional Coverages

 

As far as what North Carolina law requires, that’s it. You must have minimum liability coverage and uninsured motorist to match. However, there are other types of coverage to consider:

 

Higher Liability Limits: Liability is one of the most affordable auto coverages and the most important. Both vehicle repair and medical treatment costs are higher than ever. This means your liability limits may not stretch as far as they used to. Make sure you don’t come up short and end up in a lawsuit.

Collison Coverage: Collision pays to repair your vehicle no matter who is at fault. The state does not require it, but if you have a lease or lender on your car, they may.

OTC (other-than-collision): pays to repair your vehicle if it’s damaged in something other than a collision – think hail, flood or falling tree limb. Again, the state doesn’t require it, but your lender might.

Medical Payments: Medical payments cover medical expenses for you, your passengers or any family member injured in an accident – regardless of fault. The coverage also pays for funeral expenses if there is a fatality. Medical payments coverage is not required by law, but it can offer an added layer of coverage.

 

Minimum Auto Insurance in North Carolina is a Starting Point

 

Keep in mind, the state requirements represent the minimum auto coverage required. It may or may not give you adequate coverage in the event of an accident. An accurate indicator of your auto insurance needs comes from a discussion about your assets, comfort level, and drivers in your home.

 

To learn more about Minimum Auto Insurance, contact oiur team at ProtectiveAgency.com at (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.