Full Auto Insurance Coverage In North Carolina: What's Included?

Full-coverage car insurance in North Carolina costs $2,271 per year or $189 per month on average. The state-minimum coverage is $815 per year or $68 per month on average, making the state 6% cheaper than the national average. In North Carolina, liability coverage is required, along with uninsured motorist coverage. The minimum amount of North Carolina auto insurance coverage is $30,000 of coverage for injuries or death involving one person in a single accident, $60,000 of coverage for injuries or deaths involving two or more people in a single accident, and $25,000 of property damage coverage.

Liability coverage

In North Carolina, liability coverage is a mandatory part of basic auto insurance. This coverage will pay for bodily injuries and property damage for which any covered individual becomes legally responsible. The Personal Automobile Policy will cover you, any family members, and any person using your automobile with permission. The policy will pay up to the limits listed in your policy.

Under liability coverage, you will have separate limits of liability per person injured and limits of liability per accident. This is called split limits. For example, you may have limits of 100/300/50. This means that your policy will pay up to a maximum of $100,000 to any one person injured by a covered driver or up to $300,000 for all injured parties combined in a single accident. In this example, you will also have a limit of $50,000 for property damage liability for each accident.

The liability section can be divided into three parts: Bodily Injury Liability, Property Damage Liability, and Supplementary Payments. Bodily Injury Liability covers damages to other people, such as medical and funeral expenses, lost wages, disability, rehabilitation, pain and suffering, lawsuit settlements, and legal expenses. Property Damage Liability covers the repair or actual cash value (ACV) of another individual's automobile or other property, as well as legal expenses. Supplementary Payments are additional to your stated limits of liability and cover expenses such as bail bonds, premiums on appeal bonds, costs taxed against the insured, and interest accruing after a judgment.

Uninsured/underinsured motorist coverage

In North Carolina, uninsured motorist coverage (UM) is mandatory, while underinsured motorist coverage (UIM) is optional and must be added to a policy. UM coverage protects you in the event that an uninsured driver who is at fault injures you or another insured individual. It also covers property damage. UIM coverage, on the other hand, comes into effect when an underinsured driver—that is, a driver whose liability insurance is insufficient to cover the losses of those they injure in an at-fault accident—is at fault. UIM does not cover property damage, but it will pay the difference between the other driver's liability limits and your UIM limits.

In North Carolina, liability coverage and uninsured motorist coverage are packaged together. When a driver purchases $30,000 in liability coverage, they automatically receive $30,000 in uninsured motorist coverage. If you want underinsured motorist coverage, you must specifically request it.

It's important to note that, regardless of how much coverage you carry, it can be challenging to obtain sufficient compensation from insurance companies, even your own, as their primary goal is to protect their profits. Therefore, it is advisable to consult an experienced attorney before communicating with any insurance company.

Additionally, in North Carolina, you cannot sue your insurance provider. If a dispute arises, the matter will be submitted to arbitration, where an arbitrator will hear your case and make a binding decision.

Medical payments coverage

In North Carolina, auto insurance is a requirement to protect yourself financially in the event of an accident. While basic personal auto insurance is mandated across most U.S. states, the specific laws vary. In North Carolina, liability coverage and uninsured motorist coverage are required.

Med Pay is a no-fault benefit, meaning that you will file a claim with your insurance company under your existing Med Pay policy, regardless of who was at fault for the accident. This can be advantageous as it allows for a quicker payout, providing some breathing room while you seek further compensation from the at-fault driver.

Med Pay coverage typically comes in various amounts, such as $1,000, $2,000, $5,000, $10,000, or more. It is important to note that Med Pay will not cover any expenses if the injuries occur while occupying a motorized vehicle with less than four wheels.

Collision coverage

In North Carolina, liability coverage and uninsured motorist coverage are required. However, collision coverage is not legally required in any state. That said, if you're leasing or financing your vehicle, your lender may require you to have collision coverage to protect their investment.

The benefit of having collision coverage is that it eliminates the need for out-of-pocket expenses, except for the deductible. If you decide to remove collision coverage, you will need to evaluate your financial situation and consider whether you would be able to pay for repairs or a replacement vehicle out of pocket in the event of an accident.

When deciding whether to opt for collision coverage, consider the value of your vehicle. If your vehicle is brand new or still worth a significant amount, collision coverage can help with expensive repairs or a replacement if it's damaged. Additionally, if your vehicle is in storage, such as a boat or RV, you may not need collision coverage while it's not in use.

Comprehensive coverage

In North Carolina, comprehensive coverage is an optional auto insurance coverage that protects your vehicle from damages not related to accidents. This includes damage caused by:

• Missiles or falling objects
• Fire
• Theft or larceny
• Explosion or earthquake
• Windstorm
• Hail, water or flood
• Malicious mischief or vandalism
• Riot or civil commotion
• Contact with a bird or animal
• Breakage of glass

Frequently asked questions