Minimum Limits Insurance in North Carolina

Most states, with the exception of New Hampshire, have compulsory Liability Insurance laws. This means you do not have a choice but to carry auto insurance. If you were driving without insurance and involved in an accident, especially if the investigator deems the accident to be your fault, you could find yourself in serious trouble if you do not have minimum limits insurance. These laws are not meant to be burdensome. They are in place to protect you and others on the road. After all, you would want the driver who is next to you to have insurance; it would be beneficial to extend the same courtesy to those who are driving around you.

To help you better understand what the minimum limits insurance is for North Carolina we have come up with this breakdown. It will go over what each limit is and what it is designed for.

Minimum Limits Insurance Breakdown

Every state that has mandated liability coverage has set a minimum coverage amount each driver should have. The term for this level of insurance is often called Liability Insurance. It is also known as Minimum Limits Insurance. State requirements differ between the states.  In North Carolina, there are four parts of the state minimum car insurance requirements. Bodily Injury, Property Damage, Uninsured Motorist Bodily Injury, and Uninsured Motorist Property Damage.

Let’s go over the details of each part of the minimum limits insurance policy. We will identify what each part is, what it covers, what it does not cover, and what the limits are and what they mean to you as a driver on North Carolina highways.

Bodily Injury –Bodily injury liability coverage is used when you are at fault in a car accident. This part of your insurance policy will pay the medical bills for the injured party up to the policy’s specified limits. North Carolina Minimum limits insurance requires you to carry:

• $30,000 of coverage per person. This is the maximum amount your policy will pay out for medical bills for the other driver for this accident.
• $60,000 of coverage per accident. This is the maximum amount your insurance policy will pay out for all medical bills for all people injured in the vehicle of the other driver.

Keep in mind that Bodily Injury does not cover your injuries. It is intended to cover the injuries to the other party involved in the accident when you are at fault.

Property Damage -Property damage liability is coverage for repairs to the other vehicle involved in the accident when you are found at fault. North Carolina Minimum limits insurance requires that you carry:

• $25,000 of coverage per accident. This is the maximum amount your insurance policy will pay out for damages to the other driver’s property. This includes damages to the vehicle and any personal property inside the vehicle.

Keep in mind that property damage does not cover your vehicle damages. It is intended to cover the damages to the other party involved in the accident when you are at fault.

Uninsured/Underinsured Motorist Bodily Injury

Uninsured Motorist and Underinsured Motorist Bodily Injury is insurance coverage for injuries to you and the people in your vehicle if you were involved in an accident when the other driver is at fault. This part of your minimum limits insurance kicks in and helps pay for your medical bills up to your insurance policy’s specified limits.

The uninsured motorist coverage is for when the other driver does not carry the required minimum limits insurance. The underinsured motorist coverage protects you if they are insured, but their insurance limits are too low to cover the injuries you or the others in your car have sustained.

The North Carolina minimum limits insurance for Uninsured/Underinsured Motorist Bodily Injury is identical to the coverage amounts for Bodily Injury.

• $30,000 of coverage per person. This is the maximum amount your insurance policy will pay out for your medical bills for this accident when the other driver is at fault.
• $60,000 of coverage per accident. This is the maximum amount your insurance policy will pay out for all medical bills for everyone in the vehicle, including you. Remember, this is when the other driver is at fault.

Uninsured/Underinsured Motorist Property Damage –Uninsured Motorist and Underinsured Motorist Property Damage coverage pays for damage done to your car and the belongings up to the specified limit in the policy. If the other driver is at fault and does not carry minimum limits insurance, then the uninsured motorist portion of your policy will be triggered. If he does have this coverage, but your damages go beyond his insurance limits, then the underinsured motorist portion of your policy will kick in.

The North Carolina minimum limits insurance for Uninsured/Underinsured Motorist Property Damage is also identical to the Property Damage limits.

• $25,000 of coverage per accident. This is the maximum amount your insurance will pay out for damages to your vehicle per accident when the other driver is at fault.

Quick Pointer:

Keep in mind that your minimum limits insurance covers you per accident. This amount renews with each accident. However, if your accident involves more than one vehicle, your policy limits would quickly be used up because the insurance company treats that as one accident. Your limits would apply to the entire accident. This insurance will fall short in the event of a multi-vehicle accident, should you be found completely at fault. Therefore, additional coverage is beneficial.

Optional Coverages

Personal Injury Protection – Personal Injury Protection, otherwise known as no-fault insurance, is designed to pay medical bills in the event of an accident regardless of fault. This is a requirement in some states that have No-Fault insurance laws. North Carolina is not one of them. It is not part of the minimum limit insurance requirements, so this is optional coverage for drivers.

Comprehensive/Collision -These insurance options are not part of the minimum limit insurance requirements. This insurance is designed to protect against any accidents that occur that involve damage to anything other than an automobile. Comprehensive covers damage that happens to your car and collision is if you hit something that is not a car.

Umbrella -Your minimum limits insurance is lacking if an accident is on a larger scale. An Umbrella policy gives you an increased level of liability coverage should you be sued by another driver in an auto accident. However, there are minimum limits you would need to have in order to purchase a policy. Minimum limit insurance coverage is below that threshold.