North Carolina Auto Insurance Coverage Types, Minimum Liability Amounts

North Carolina auto insurance is available from a variety of local and national companies. Though no one likes spending hard earned money on insurance, it is a must to have the right kind of coverage. Cutting corners can just lead to more financial obligations down the road, should an accident occur. Though every state, including North Carolina, has requirements as far as what coverage must be carried, these requirements might not be enough.

North Carolina auto insurance laws are based on a tort system. This means that someone must be found at fault for causing an auto accident. The financial responsibility is then in the hands of the one who is at fault. Because of this, North Carolina has requirements that every driver must carry through their auto insurance policy.

The first requirement is Bodily Injury Liability in the amount of $30,000 per person and $60,000 per accident. The second requirement is Property Damage Liability coverage in the amount of $25,000. The third requirement is Uninsured Motorist Bodily Injury in the amount of $30,000 per person and $60,000 per accident. The last requirement is $25,000 is Uninsured Motorist Property Damage.

Though these amounts will fulfill the requirements of the law, they may not be enough. If your vehicle is financed, the lien holder will most likely require you to carry comprehensive insurance until the vehicle is paid for. Comprehensive North Carolina auto insurance coverage covers just about everything no matter whom or what caused the damage. From accidents to acts of God to vandalism, everything is covered under a comprehensive plan.

Of course a comprehensive plan is more costly, but in ensures that should your car be totaled when you still owe money, the finance company will not lose out. Those with loans out are not the only ones who can take advantage of a comprehensive policy. If you live in an area prone to dangerous weather such as tornados or hurricanes, having comprehensive insurance is important.

Another type of coverage to consider is collision insurance. Collision insurance covers collisions with vehicles, objects, the road itself, or people. It also provides for towing and salvage of a damaged vehicle. This is different than liability insurance which simply covers the damages you yourself are liable for.

When it comes to North Carolina auto insurance policies, be sure you're covered. At the very least, get the coverage required by law. After this, make sure you have the coverage required by the lien holder or finance company. And lastly, be sure to consider adding additional coverage so you are not left with a large financial commitment after an accident.

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Minimum liability requirements for your North Carolina auto insurance policy are set rather high at $30,000/$60,000/$25,000.

Although comprehensive North Carolina auto insurance will cost you more in the short run, it can be a very safe long-term bet.

Check additional valuable information of your State Insurance department organization.
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