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North Carolina car insurance coverage: All you need to know

  • Car Insurance Tips
  • Renee Martin
  • 4 minutes

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Are you planning to buy a new car or truck in North Carolina this fall? Here’s all you need to know about North Carolina car insurance coverage options.

If you intend to buy a new car or a truck in the Tar Heel State, it’s important to know North Carolina’s car insurance requirements. North Carolina Motor Vehicle Law requires all residents who drive a car to maintain continuous car insurance liability coverage. Auto insurance is intended to protect you against expenses that you might not be able to afford if you are involved in a car accident. So let’s take a look at the various car insurance coverage options in North Carolina that could cover your needs.

Minimum North Carolina car insurance coverage requirements

If you are a resident of North Carolina and own a car, the minimum car insurance coverage required is:

  • Bodily injury liability per person: $30,000
  • Bodily injury liability per accident: $60,000
  • Property damage liability: $25,000
  • Uninsured/underinsured motorist coverage per person: $30,000
  • Uninsured/underinsured motorist coverage per accident: $60,000
  • Uninsured motorist property damage: $25,000

Types of North Carolina car insurance coverage

Liability: All drivers must have liability coverage to drive a vehicle in North Carolina legally. Liability coverage will pay for bodily injury and property damage in the event of an at-fault accident in the state. Liability coverage can be split into three parts: bodily injury liability, property damage liability, and supplementary payments.

  • Bodily injury liability: This coverage will help you pay for damages to other people as a result of an accident caused by you. This includes payments for medical expenses, funeral expenses, lost wages, disability, legal expenses, etc.
  • Property damage liability: As the name suggests, this coverage will help you pay for damages caused to other people’s property as a result of an accident you caused.
  • Supplementary payments: This coverage is an addition to your state-mandated minimum liability insurance. This coverage will help you pay for bail bonds, loss of earnings from attending a court hearing, expenses for emergency first aid to others injured in an accident, etc.

Being in a car accident is never fun. However, if you ever find yourself in an unfortunate collision with an object or another car, check out how to deal with your insurance agent or carrier here

Optional auto insurance coverage in North Carolina

Collision: Collision car insurance is a type of car insurance that pays for damage to a vehicle caused by a collision with another object. This implies that if you collide with another vehicle, a fence, a pole, or a tree, or if you roll or flip your automobile, collision insurance will cover the damage. Collision insurance also protects your automobile from damage caused by a hit-and-run driver or a collision in a no-fault state.

Comprehensive: Comprehensive vehicle insurance is designed to kick in if your automobile is damaged in a way that isn’t caused by an accident. In general, if your car is damaged due to an event beyond your control, you’ll require comprehensive insurance to be covered or compensated. Damage caused by the following are considered comprehensive claims: 

  • Falling objects
  • Fire
  • Theft or larceny
  • Explosion or earthquake 
  • Windstorm, hail, water, or flood
  • Malicious mischief or vandalism
  • Riot or civil commotion
  • Contact with a bird or animal
  • Breakage of glass.

Medical payments: MedPay pays for medical and funeral expenses due to a car accident. This coverage covers you or your family members while in the car. It also covers the medical expenses of anyone else that’s driving your covered vehicle.

Uninsured and underinsured motorists coverage: Uninsured Motorists (UM) Coverage will provide protection when an uninsured driver, who is at fault, injures you or another covered individual. Underinsured Motorists (UIM) Coverage provides protection when an underinsured driver causes injury to a covered individual. 

Driving without valid car insurance in North Carolina can attract stiff penalties. To know more about the sanctions that might follow for lapses in your North Carolina car insurance coverage, head here.

Check out our blogs for info on finding top-rated airport parking, the best parking spots in your city, and affordable car washes near you.





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