North Carolina Auto Insurance

North Carolina operates under a tort system with regard to its auto insurance laws. A tort state requires that drivers have minimum levels of liability insurance to cover the medical or property expenses of others when they cause an accident. North Carolina auto insurance laws demand that blame be placed on one of the drivers, unless negligence cannot be proven. Often, tort states allow lawsuits to take place to provide settlements when the at-fault driver's coverage in inadequate.

North Carolina Auto Insurance Coverage Minimums

In North Carolina, all drivers are required to carry minimum liability coverage of 30/60/25 in order to drive on public roads. That number simply states that if an accident occurred and the at-fault party carried the minimum legal coverage, their insurance would pay up to $30,000 per person injured, up to $60,000 for all injured people, and a maximum of $25,000 for any property damages.

The legal minimums are rarely adequate when it comes to insuring your life and property. Under North Carolina's tort system, you can be sued and your assets can be used to pay for damages you cause in excess of your insurance coverage.

These minimum requirements also offer no protection of your property if you are at-fault in an accident, nor do they cover you if an uninsured drivers strikes your vehicle. For these reasons, you should consider purchasing the following optional coverage:

• Collision coverage will provide protection for your vehicle in the event that you cause an accident.
• Comprehensive coverage will pay for damages associated with weather or vandalism, and if your car is stolen.
• Uninsured motorist bodily injury protection will pay for medical bills and lost wages in the event that an uninsured motorist hits your car.
• Uninsured motorist property damage coverage will provide protection for your property if it is damaged by an uninsured driver.

North Carolina Auto Insurance Rates

North Carolina auto insurance is relatively cheap when compared to other states. It ranked 47th in the country for auto insurance expenses in a recent study. On average, drivers in North Carolina pay out about $600 per year for coverage. Specifically, motorists in the state pay an average of $338 for liability per year, $263 for collision, and $115 for comprehensive coverage.

How are North Carolina auto insurance rates determined? Insurance companies start by calculating the total costs of doing business in the state and also statewide risk factors. The number of accidents on North Carolina roads and even the predictions for bad weather (which tend to increase traffic accidents) can affect individuals auto insurance rates. Every insured driver in the state then pays a certain share of these averaged-out expenses.

The auto insurance providers also calculate individual risk factors. These always include basic information such as your age, gender, and the type of car you drive. In addition, they may also include such variables as your credit score, your occupation, and even the level of education you have completed. All of these factors are weighed in slightly different ways by different companies in order to evaluate your perceived risk, which then determines the additional amount you will pay for coverage.

North Carolina Auto Insurance Companies

There are numerous auto insurance companies offering coverage in North Carolina. Rates and quality of coverage can vary greatly depending on which carrier you choose, so it is a very good idea to shop around in order to make good decisions about your car insurance.

Official North Carolina Auto Insurance Information and Resources

For more information on North Carolina auto insurance:

North Carolina Department of Insurance
1201 Mail Service Center
Raleigh, NC 27699-1201
Phone: (919) 733-2032

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For other North Carolina Insurance Resources, See:

• North Carolina Health Insurance
• North Carolina Home Insurance

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