Regardless of where you live, owning and operating a vehicle is a big responsibility. If you register a vehicle in North Carolina or have a valid driver’s license, one of those responsibilities is adherence to all automobile insurance laws.

Each state has their own department of insurance. This means the laws of one state may be significantly different than another. Whether you are new to the beautiful state of North Carolina, or a long-time resident, is it essential you understand and obtain proper coverage.

 

Minimum Insurance Requirements

 

Having just any automobile insurance may not be enough. Specific minimum requirements have been set for any driver or vehicle registrar in the State. Your insurance policy must include coverage for bodily injury, property damage, and uninsured/underinsured motorist coverage.

Each coverage plays an important role should you ever become involved in an accident.

 

Bodily Injury: The required minimum is $30,000 for any one person and $60,000 for two or more people. This coverage pays the other driver and their passengers for injuries from an accident where you were at fault.

 

Property Damage: You must carry at least $25,000 in coverage to pay for any damage to another person’s property from an accident you caused.

 

Uninsured/Underinsured Motorist Bodily Injury: In the event you are in an accident where you were not at fault, but where the other driver doesn’t have any or enough insurance to pay your medical bills or damage, this coverage kicks in. At a minimum your coverage must match your bodily injury limits.

 

Fault State

Determining whose insurance policy responds in the event of an accident depends on whether you live in a “fault” or “no-fault” state. North Carolina is a “fault” state.

 

In a “fault” state, the personally legally at-fault for an accident carries the liability for injury or damages. This differs from a “no-fault” state where each party is responsible for their own injuries and damages up to a state set limit.

If you find yourself in an accident where you are not at fault, you may pursue compensation from the at-fault party. This can be done by filing a lawsuit, filing a claim with the at-fault party’s insurance company, or filing a claim with your insurer who will then seek reimbursement from the at-fault party’s insurance company.

 

 

Safe Driver Incentive Plan

 

In an effort to incentivize safe driving, the State of North Carolina passed the Safe Driver Incentive Plan (SDIP). Based on a point system, the SDIP law allows points to be applied to your insurance premium for convictions and at-fault accidents.

For points to be applied, the conviction or accident must have occurred within a three-year period prior to the application or renewal of your automobile insurance. Different offenses result in different points applied to your record. For example:

 

Speeding: If less than 10mph in a 55mph or slower zone, 1 point.

 

Minor Infractions: Passing illegally, following too closely, and other infractions will earn you 2 points.

 

At Fault Accident: If death or total disability occurs from an accident you caused, 3 points.

 

Reckless Driving: Passing a stopped school bus and other reckless behavior, 4 points.

 

Driving with Suspended/Revoked License: 8 points.

 

High Speed Driving: Eluding police or highway racing, 10 points.

 

Major Infractions: At fault accident resulting in death or bodily injury, driving while intoxicated, and other major infractions, 12 points.

 

Of course, not only will your record be marked, additional penalties, fees, and even jail time could be levied. As related to insurance, however, the law allows insurance companies to increase your insurance premiums.

 

Just one point on your driving record allows an insurance provider to increase your rate by up to 30%. Earning four points will see your premium almost double. And reaching point counts in the double digits will result in premiums rising 200%, 300%, and even 400%.

 

Every driver is required to carry automobile insurance. While this means premiums must be paid, the laws of North Carolina are designed to help protect you, your family, and your fellow drivers.

 

For more info on NC laws and how they affect insurance, please contact our team at ProtectiveAgency.com or call (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.