North Carolina Auto Insurance Coverage


Every state requires you to have the right amount of car insurance to cover you, your family and your vehicle. Mandatory coverage and minimums are set by the state and it is illegal to drive on the streets and highways in the state of North Carolina with at least the required coverage.

Some states give you other options to cover potential damages and injuries through means other than auto insurance. North Carolina does not allow that optional coverage and you must obtain auto liability coverage through an insurance agency.

If you are a driver in the state of North Carolina you must carry the following liability insurance: $30,000 bodily injury for one person in one accident; $60,000 bodily injury or death coverage for two or more people in one accident; and $25,000 property damage coverage. These are the minimum levels required by your state and are the maximum amount that your insurance carrier will pay out in case of an accident. You may want to increase your limits to further protect you and your family.

Bodily injury liability will take care of the other people who were involved in the accident if you were at fault. It will pay their medical bills, compensation for lost wages, legal representation, rehabilitation, or nursing care, pain and suffering, and funeral expenses in the case of death. It does not cover you or any passengers in your vehicle.

Personal injury protection, or PIP, does take care of you, any passengers in your vehicle as well as you and member of your household who may be passengers in another vehicle that has been in an accident.

You should have property damage coverage in place to take care of the repair of the property that you damaged. It will also replace the property including any other personal items that may have been damaged as a result of this accident.

There are other areas of coverage that you may wish to add to your policy. If you have a vehicle that has been financed your lender will require you to carry collision coverage to protect their investment. If you have an older vehicle it usually doesn’t pay to carry collision but if you have a car that has substantial value, financed or otherwise, you should consider collision coverage.

Comprehensive coverage protects the value and replacement of your car in the event that it is damaged as a result of anything other than an accident, for example if your car is stolen, someone breaks into it or it suffers flood damage.

And uninsured or under-insured motorist coverage protects you if you get hit by someone who does not have insurance or doesn’t have enough coverage or if you are the victim of a hit and run accident.

You must carry proof of insurance in case you are stopped by a police officer. If you cancel your insurance, your carrier will notify the DMV. If the DMV determines that you do not have car insurance, they will send out a verification form for you to fill out. If you do not provide proof of insurance you could have your license suspended until you secure insurance coverage.