In North Carolina, it is a legal requirement to have auto insurance that will protect you from any possible kind of damage resulting from a car accident, theft or similar situations. Like any other state, getting auto insurance in North Carolina means you need to familiarize yourself with the laws and regulations concerning the specific type of insurance you’re looking for.
This article will help you understand the basic car insurance laws of the state where the “fault” auto insurance system is in effect.
An Overview of the “Fault” Insurance System
What this system means is that the person who caused the accident is held legally responsible for the liabilities and damages brought about by the said accident. Either the policy owner is the driver at the time of the accident or his/her covered vehicle is the one being used.
If you are involved in a car accident in the state of North Carolina, there are three ways for you to make a claim:
• File your insurance claim with your insurance company through your insurance advisor or agent
• File a personal injury case against the driver at fault
• File third party insurance claim from the insurance company of the driver at fault
North Carolina Minimum Requirements for Auto Insurance
North Carolina car insurance law requires that vehicle owners or those operating non-private vehicles must have a certain amount of liability coverage prior to running the vehicle anywhere in the state. The following insurance policies are the minimum requirements of the state:
• $25,000 – required to cover any injuries or medical requirements as well as funeral expenses (must include the policy owner, driver, pedestrian, family members, and any passenger of the covered vehicle)
• $60,000 – required coverage for claims against damages from a single accident
• $25,000 – minimum coverage to include damage against property caused by the accident
While it is safe to get only the minimum required coverage as required by the state, it is still safer to get a policy with higher coverage. Having higher maximum coverage will insure you in cases when you are the one at fault and the total damages exceed the limits of your insurance coverage. It saves you from having to shoulder the difference of what your insurance policy can only cover.
Uninsured and Underinsured Motorist Coverage
Apart from liability insurance, another type of coverage that the state requires is the uninsured and underinsured motorist insurance policy. The former ensures protection of the policy holder and the covered vehicle where the driver at fault bears no insurance. It also includes claims against any property damage. The latter is applicable when the insurance policy of the driver at fault is not enough to cover for the injuries caused and damages from the accident. Yet, this type of coverage does not include damage to property. For example, if the driver at fault only carries the minimum $25,000 auto insurance policy and medical expenses reached more than the said amount, the underinsured motorist insurance will pay for the difference.