In 1957, North Carolina became one of the first states to enforce an auto insurance law for drivers after having it be optional since July 1, 1909. There were too many uninsured motorists driving around, and as a result the Vehicle Financial Responsibility Act of 1957 was born. It demands that “all motor vehicles registered in the state must be covered by an automobile liability insurance policy and that the insurance must remain in effect with continuous coverage until the registration is terminated.” (www.ncdot.org)
Throughout the years, the requirements of have changed. As of January 1, 2009, the state of North Carolina has once again altered their car insurance laws. More specifically, legislation has increased the minimum monetary amount drivers must carry as well as added more coverage types that must be purchased. This information is imperative to all drivers because it is considered a punishable crime to drive without the minimum insurance requirements or other forms of financial responsibility. So, before you head out to the beach, be sure the driver is carrying the coverage needed.
Minimum Liability Insurance
North Carolina now requires all drivers to carry a minimum of $30,000 of bodily injury liability per person and $60,000 per accident, with a minimum of $25,000 for property damage. The purpose of these coverage options is to protect the other driver involved in the collision from having to pay for damages the policyholder causes. Liability insurance also protects the policyholder’s assets from becoming a means to pay for damages. Without insurance in place, the other driver could sue for damages and the policyholder could lose a lot of money.
Bodily injury liability is split into two parts; per person and per accident. In this particular instance, a person who purchased $30,000 per person and $60,000 per accident is agreeing to allow the insurer to pay for the other party’s bodily injuries up to $30,000 for each individual member of the vehicle. The $60,000 is the total amount the insurer will pay for all bodily injuries combined. This liability also will provide legal assistance to the policyholder if needed. Note that this coverage, which is mandatory, does not provide medical financial assistance to the policyholder or other members of the policy. Additional coverage will be needed for that specific assistance.
Property damage liability is in place so the other driver, who is not at-fault for the collision, will have their property repaired by the insurance group up to the amount purchased by the policyholder. This can include cars, fences, lampposts, and buildings. Cars and structures are becoming more and more upscale, which means they’ll be more expensive to repair. This liability, like bodily injury liability, does not apply towards any of the policyholder’s expenses. Again, separate coverage will need to be purchased to pay for the repairs of the policyholder’s vehicle.
These minimum amounts will not cover all of the expenses that are part of a major accident. Experts recommend all drivers carry 100/300/100 in coverage. Also mandated by the state is that all drivers must carry continuous liability coverage. Every auto insurance company is required to notify the state when a customer fails to renew their policy. When the state knows of the laps of insurance coverage, the policyholder will have a certain number of days to fix the problem or else will have to pay fees.
Getting Cheap Rates
Cheap auto insurance in North Carolina can be found, but usually that happens only when drivers actively look for it and do everything possible to find it. Low rates aren’t hiding, per say, but they aren’t exactly screaming from the mouths of every insurance company either. There are some things drivers can do to find inexpensive rates while they drive the streets of North Carolina.
First and foremost, drivers can pay attention to their driving habits. Every driver who has a clean driving record, meaning no traffic tickets or past accidents, is offered the lowest rates the company offers. These drivers pose little risk to the company needing to pay out a future claim, and the insurer will reward good drivers with cheaper rates. It’s possible for drivers to see cheaper rates at almost every renewal period too.
Second, look for discounts. Good driver discounts, good student discounts, defensive driver courses, senior citizen discounts, vehicle safety features; these are all different types of discount opportunities offered by most providers. There are enough available that even decent drivers can qualify for at least one discount.
Third, chose an “insurance friendly” vehicle. Not every car is cheap to insure, and a good rule of thumb is a high cash value car is an expensive car to insure. If a provider claims they will replace the cash value of a totaled car, and that car has a high cash value, the group will charge the policyholder a higher amount for insurance as a way to still make money off of the policyholder if the group needs to pay out to replace the car. Insurance providers only make profits when they see more money getting paid in to them than the money they pay out for their expenses and claims filed. Choosing a modest car with plenty of safety features will be less to insure than a brand-new Benz, but will be more expensive to insure than an old car.
Fourth, if there is more than one driver and vehicle within a household, keep all drivers and all vehicles on the same policy. Insurers will offer lower rates to that group of drivers and vehicles when compared to insuring the drivers and vehicles on individual policies.
Fifth, compare rates from multiple companies. There is no better way to find out what rates companies are offering to other drivers than by comparing them side by side. Know the rates, what the company offers and how the company acts before choosing an insurer.
For 100 years, insurance companies have been providing coverage for automobiles and their drivers. While many things have changed over the course of time, one thing has not: finding excellent car insurance at a reasonable price. Thankfully, now we have the Internet to help us search and locate these low rates easier than ever before. Onlineautoinsurance.com is committed to helping consumers learn more.
