North Carolina Car Insurance: Basic Coverage Described

North Carolina car insurance coverage is simple to understand. All motorists must carry a minimum level liability policy on their vehicles. Liability coverage pays for damage to property and personal injury costs caused by an accident where the insured is responsible.

Costs incurred during a covered accident usually consist of two parts. The first component covers injuries to the other driver, passengers or pedestrian in the accident. The second factor is coverage for damages to property during the accident. This includes damage incurred by the victim's vehicle and damage done to buildings or equipment at the accident site.

In North Carolina, the minimum liability insurance coverage for bodily injury is $30,000 for a single victim of an accident. If there are multiple victims, the maximum coverage per accident is $60,000. Property damage minimum coverage for each accident is $25,000. Property damage coverage includes damages to street signs, buildings and to the victim's vehicle if any.

Just because a certain minimum level of insurance coverage is mandated, doesn't mean that the motorist should stop with just a minimum amount. You should select the amount and type of coverage for your automobile that will protect you in the event of an accident for which you are responsible. The basic coverage can be expanded by adding collision insurance, comprehensive insurance and uninsured motorist coverage.

Collision and comprehensive insurance pays for costs incurred in an accident for which the insured was responsible. This includes costs to the insured's own vehicle. The maximum amount of repairs will be the Blue Book value of the vehicle at the time of the accident. Without comprehensive coverage, the owner must pay off the cost of the vehicle value personally.

If there is a lien holder, the owner of the vehicle must repay off the value of the lien for a totaled car. Many lien holders require that comprehensive coverage must be carried as long as there is a lien against the automobile. For this reason, comprehensive insurance is recommended even when it is not mandated by the law.

The neighboring state of Virginia doesn't require its drivers to maintain liability insurance. This can be a problem if you are a North Carolina driver and an uninsured driver who resides in Virginia causes an accident. Without uninsured motorist coverage, even though the accident is not your fault, you could end up paying for the costs of repairing or replacing your vehicle. North Carolina car insurance policies should be the subject of a regular review by the policy holder to make certain the coverage is adequate.