TUESDAY, FEBRUARY 15, 2022
North Carolina state law specifies what minimum auto insurance coverage is necessary to register or operate a motor vehicle within the state. Failing to carry the minimum levels of auto insurance could result in penalties. Beyond that, making sure you carry at least these minimum amounts before you drive can help protect you and other drivers.
Mandatory Minimum Auto Insurance
According to the North Carolina Department of Insurance, state law requires continuous automobile liability insurance coverage. North Carolina motor vehicle law also requires policies to include uninsured motorists coverage and potentially underinsured motorist coverage, depending on the policy’s liability limits.
Liability Coverage
Automobile liability coverage may help pay for bodily injuries and property damage if you are legally responsible for an accident. In North Carolina, the law requires a minimum of $30,000 of bodily injury coverage for a single person and at least $60,000 of bodily injury coverage for all people per accident. The statute also requires a minimum of $25,000 in property damage coverage. These requirements may be referred to as 30/60/25 coverage.
Uninsured/Underinsured Motorist Coverage
If the driver at fault for an accident does not have insurance or has insufficient insurance needed to pay for the resulting damages, uninsured and underinsured motorist coverage can provide added protections. In North Carolina, if you have an auto insurance policy with the minimum bodily injury and property damage coverage, the policy must also include uninsured motorist coverage. If your auto insurance policy has coverage limits greater than the required minimum amounts, the policy must provide combined uninsured/underinsured motorist coverage. 
Should I Have More Than the Minimum Amount of Coverage?
While it may not be legally required to carry more than the minimum auto insurance coverage, it is often a best practice to do so. Minimum coverage amounts may leave you financially vulnerable if you are in an accident in which the expenses exceed your limits. Additionally, if you are financing your car, your lender may require higher limits before approving a loan.
Other auto insurance coverage may also help protect you from other risks. Other options include but are not limited to:
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Collision coverage may help pay for damage to your car if it collides with another car or an object (e.g., sign, tree).
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Comprehensive coverage may help pay for losses caused by other events that are not collisions (e.g., theft, fire, vandalism).
How Much Does Auto Insurance Cost?
Several factors influence the cost of auto insurance. Your driving record, age, location, and claims history, along with your selected coverages and deductibles, could affect premiums. The professionals at Parker, Shelton & Associates can help you find a policy that meets your needs and budget. Contact us today for more information or a quote.
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