While automobile insurance in North Carolina is a state requirement, there are still a lot of people who struggle to understand what it actually does. Of course, it’s important that you comply with the law but it’s equally vital that you understand what it is that you’re paying for. By taking the time to look into the details of your policy, you will better understand what it’s for and how it can help you in the future.
What is Automobile Insurance in North Carolina?
Automobile insurance is a policy that protects you, your car, any passengers you might have, any drivers you have authorized, others on the road, and others’ property that could become involved in accidents or injuries with your car. If for example you collided with another vehicle on the road because of your own fault, your insurance (as mandated by the law) should be able to cover the damages and injuries sustained by the victims. Optionally, you can also buy insurance on a website to cover the destruction and bodily harm you sustain during the incident.
What are the Common Types of Coverage for Automobile Insurance in North Carolina?
- Liability Coverage
What does it do? This type particular coverage is responsible for the costs of bodily injury and property damage which you are liable for or which you caused.Who does it protect? It protects people on the road who you might accidentally collide with.Does the law require this? Yes, this type of coverage is required by the law in North Carolina because this will ensure you have the money to pay for any damages and bodily harm you might cause.
What does it do? This pays for any damage to your vehicle secondary to collision with other cars on the road, whether or not it was caused by you.Who does it protect? This protects your insured vehicle.Does the law require this? In North Carolina, this is not required. However, if you’re paying for your car through a lender, they might have you purchase this coverage.
- Medical Payment Coverage
What does it do? Pays for any necessary medical or funeral services for people driving your car or riding in your car during an accident.Who does it protect? You, your designated or authorized driver, and/or your passengers.Does the law require this? No, this is not required by the law as an inclusion for automobile insurance in North Carolina.