Coverage Requirements for Auto Insurance in North Carolina

Tuesday, January 10, 2017

Were you aware that each state has its own requirements regarding health insurance and its coverages? Some states do not even require a driver to carry car insurance of any kind (although that is not recommended). Requirements for auto insurance do not vary too much from each state, however, minimums, and the types of coverages that are mandated, versus optional, may vary slightly. It is important to know your state’s coverage requirements before speaking with an insurance agent or broker to aid in being a savvy shopper. Below are the requirements and optional coverages for North Carolina auto insurance.

Mandated Coverages

North Carolina is one of many states which require all drivers to maintain valid automotive liability insurance when driving. The bare minimum requirements include $30,000 for bodily injury liability per person per accident, $60,000 of bodily injury liability in total per accident, and $25,000 property damage liability per accident. This minimum coverage is intended to cover the other party of an automotive accident in which you, the insured driver, are at fault.

In addition to covering driver liability, North Carolina requires every driver carry these same protections under uninsured motorist coverage. This type of coverage will pay for you, the insured driver, in the event you are involved in a collision with either an uninsured motorist or a driver that committed the crime of hit and run. In this instance, the uninsured motorist must be at fault for you to receive benefits.  

 

Optional, but Recommended Coverages

North Carolina’s required insurance coverages are in place to make sure that any party to an accident in which the fault was on the other party, is returned to as close to whole as possible after the accident. However, it does nothing to help make the driver as close to whole as possible. This is where the recommended optional coverages play an important role. North Carolina allows for several optional coverages for automotive insurance, such as collision, OTC (other-than-collision) towing and labor, and even rental car coverage.

Collision coverage covers property damage to your vehicle in an at-fault accident as long as your vehicle is involved in a collision with other moving vehicles. OTC coverage covers your property in the event of a non-moving incident, such as breaking and entering your vehicle, vandalism, or even a falling tree branch causing damage to your car. Towing and labor help if you are ever in a situation where you have a flat tire or break down in the middle of the road, while rental coverage helps you pay for a rental while your vehicle is being repaired due to a covered incident.  

Whether you purchase the bare minimums or choose to buy the most expansive coverage available, the law remains that your vehicle must be insured to drive. Furthermore, North Carolina requires you present proof of this insurance when you register your vehicle every year with the state. Proof of this insurance can include a DL-123 form, the actual insurance policy documents, an insurance binder, or the simpler insurance card. Without this proof, your car cannot be registered, and is, therefore, illegal to drive. To learn more about obtaining the proper automotive insurance as a North Carolina driver, contact the agents at Protective Agency Insurance at (877) 739-9367.