If you own a car, your state has minimum requirements when it comes to car insurance. Depending on where you live, the amount and type of coverage you need can vary widely. North Carolina has its own car insurance minimum requirements, but sometimes it may not be enough.
All vehicles registered in North Carolina are required to have liability insurance at all times, and the policy must be purchased through a licensed North Carolina insurance provider. Out-of-state policies are not acceptable. North Carolina also requires car insurance for uninsured/underinsured motorists and has minimum bodily injury and property damage limits. The bodily injury liability insurance requirement for one person is $30,000 per accident, $60,000 for total bodily injury when two or more people are injured, and the property damage requirement is $25,000 per accident. Penalties for failure to maintain the minimum amount of insurance are strictly enforced, and North Carolina insurance providers are required to notify the Division of Motor Vehicles if a policy has lapsed.
North Carolina is a “fault” state, which means the person at fault for an accident is responsible to pay for all costs incurred due to injuries and/or vehicle damage. Liability coverage does not go toward paying for the policy owner’s injuries or vehicle repair costs. You will need to purchase additional car insurance coverage to cover those potential expenses.
While the aforementioned liability insurance limit requirements are necessary for you to legally operate a vehicle in North Carolina, it is strongly suggested that you purchase additional insurance to cover your own assets and medical costs. Even a small accident could end up costing you tens of thousands of dollars, and a more serious one could ruin you financially.
Our experienced professionals have the knowledge and resources to help you make an informed decision when it comes to your car insurance needs. Please give us a call at All American Insurance Brokerage today!