I want to get auto insurance in North Carolina. What should it cover? Will my driving record affect my premium?

Liza

Chapel Hill NC

Every person getting auto insurance in North Carolina should have liability and uninsured/underinsured motorist coverage. If you obtained leased cars, you might be required by your lenders to obtain comprehensive coverage.

Liability coverage would pay for damages incurred by you and other people, as well as other properties, as a result of the accident regardless of who is at-fault. Uninsured motorist liability will protect you at times you get hurt in accidents caused by an uninsured driver.
Liability coverage comprises of third party liability for bodily injury and property damage. In North Carolina, the minimum requirement is $30,000 per person with a maximum of $60,000 per accident; and a property damage of $25,000.Uninsured motorist liability is $30,000 with $60,000 limit.

Regarding driving records, the answer to your question is yes. Driving records can greatly affect your auto insurance in North Carolina. According to the Department of Insurance, North Carolina follows a Safe Driver Incentive Plan or what they call as SDIP. Every violation you have will have corresponding points. Every time you earn a point, your premium will increase by a certain percentage. For example, you were caught driving while intoxicated. You will earn 12 SDIP points. The corresponding percentage for that will be 340%. Thus your insurance premiums will be 3.4 times the original amount.

That is why, it is most important to keep a clean record when it comes to driving. Every time you are caught repetitively for minor violations, you will still earn SDIP for that and eventually you will be categorized as a high-risk driver. In the end, it will be harder for you to achieve cheaper rates.

You might have heard of discounts. If you have one minor violation, you might be entitled to a discount depending on how long you have had the offense.

Does the State of North Carolina have any law regarding auto insurance liability requirements?

Caitlin

Charlotte, NC

Any auto insurance company registered to do business in a state is obliged to follow that state’s financial responsibility laws. These laws are the basis for the minimum requirements auto insurance companies will offer to sell to prospective policyholders.

Following North Carolina’s financial responsibility laws, it is then mandatory for every motorist residing in that state to have minimum liability. Liability insurance pays for the damages the other motorist sustained due to an accident you caused. In North Carolina, minimum liability has coverage expressed in these numbers: 30/60/25. This translates to $30,000 for the other motorist’s medical and/or hospital expenses, a ceiling of $60,000 for medical and/or hospital expenses for all passengers in the other motorist’s vehicle (including the driver), and $25,000 repair or replacement costs for the other motorist’s vehicle and other property damages. This includes public property wrecked by the accident.

Not required by highly recommended is collision and comprehensive insurance. This will pay for damages to your own vehicle and sometimes, depending on the limits of the coverage, extends to personal property. Another type of insurance worth considering is Personal Injury Protection. This takes care of your medical expenses and automatically kicks in no matter who was declared responsible for the accident. It’s a quick and convenient way to receive benefits without having to wait for litigation proceedings. Finally, there’s uninsured motorist insurance. Although it’s also non-compulsory, this type of coverage acts as a safety net in case you get into an accident with a driver who doesn’t have any auto insurance at all.

Patrick

Asheville, NC

This is a good question, mainly because a lot of people are not aware that they might be qualified to get discounts from their auto insurance agency or carrier. There are definitely a lot of discounts to help you land a more affordable car insurance policy. Listed below are the common types of auto insurance discounts available that can help bring down your regular premiums:

• Anti-Lock Breaking System.
• Defensive Driving / Accident Prevention Courses.
• Automatic Airbags & Seat belts.
• Multiple Vehicle Discounts.
• Multiple Policy Discounts.
• Installing Anti-theft devices and systems.
• Discounts for choosing an Annual payment scheme.
• Good driving record for the past three or five years.
• Enlisted Personnel, Professional, membership or employment discounts.

Some of these might not be available in all states so it would be best to consult an insurance agent or broker there in North Carolina to help you identify the kinds of incentives and discounts available. Aside from discounts, you should also be aware of the many ways to get cheap auto insurance quotes. Brokers and Agents are no longer the sole channel to be able to compare rates, many auto insurance portals like this web site can provide you many auto insurance quotes from different providers. Don’t just take the first offer you are given, shop around and know what is available in order to make an educated decision.